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FEC Approves Implementation of Strategic Roadmap for Digital Identity Ecosystem
The Federal Executive Council (FEC) has approved the immediate commencement of the implementation of a strategic roadmap for a new Digital Identity Ecosystem in Nigeria.
FEC at its meeting, held on Wednesday September 13, 2018 and chaired by President Muhammadu Buhari, GCFR, opened a new chapter in giving Nigeria a credible and robust identity management system with the approval of the new identity ecosystem strategy for the enrolment of Nigerians and legal residents into the National Identity Database (NIDB).
The FEC approval of the new Digital Identity Ecosystem will bring into full force the implementation of the provisions of the NIMC Act 23, 2007, which include the enforcement of the mandatory use of the National Identification Number (NIN) and the application of appropriate sanctions and penalties on defaulters as provided under Section 28 of the NIMC Act.
The new digital identity Ecosystem is a framework that leverages on the existing capabilities and infrastructure of distinct government agencies and private sector organisations to carry out enrolment of Citizens and Legal residents nationwide as well as issuance of Digital identity, known as the National Identity Number (NIN).
Speaking on the strategic roadmap for a new Digital Identity Ecosystem for Nigeria approved by the Federal Executive Council, Director-General of NIMC, Engr. Aliyu Abubakar Aziz, explained that the step falls in line with the Federal Government’s efforts to reposition the country as a leader in the global economy, which resulted in the launch of the Economic Recovery and Growth Plan (ERGP) in April 2017.
A major outcome of the FEC’s approval of the strategic roadmap for the new digital identity ecosystem is the mandatory enforcement of the use of NIN, which NIMC has announced to come into full force on January 1, 2019.
According to Engr. Aziz, the ERGP is designed “as an omnibus strategy for the government to meet the critical needs of the citizenry in areas such as food security, energy, transport, human capital development, but more critically developing a local digital economy.”
Identification, the D-G of NIMC explained, “is fundamental to the Federal Government achieving its new policy for the overall economic development of the country,” but regretted that “many Nigerians lack basic identification documents despite significant government efforts over the years.”
Explaining the powers of NIMC, under its Act, Engr. Aziz said: “NIMC is empowered to ensure strict compliance with the NIN requirement and can demand evidence of compliance from a person or entity; caution a non-compliant person or entity in writing; sanction a non-compliant person or entity by the imposition of administrative fines or institute criminal or civil actions against the non-complaint person or entity.”
Speaking further, he said Section 27 of the NIMC Act empowers the Commission to set a date for the enforcement of the use of the NIN for transactions listed in the Act and also to expand applicable transaction in a Regulation approved by the Attorney General of the Federation.
Consequently, Engr. Aziz said “the Commission shall from 1st January 2019 commence full enforcement of the mandatory use of the NIN and apply all applicable sanctions and penalties as provided under Section 28 of the NIMC Act against defaulters.”
NIMC, in a statement, further explained: “In the light of the above, the Commission as the regulator for the identity Sector in Nigeria hereby makes the following announcement to all agencies of government and the private sector who are directly or indirectly into the business of data capture and service provision requiring identification of persons as follows:
- The cut-off date for data eligible for harmonisation with the National Identity Database (NIDB) is 1st of December 2018. This means:
- Only data captured as at 30th November 2018 will be subjected to harmonisation as is currently on-going;
- Fresh data capture of persons shall be in compliance with the Provisions set out in the Nigeria Biometric Standards; Mandatory use of the NIN Regulations 2017 and guidelines issued by the Commission.
That is to say the capturing agency must request and verify the NIN before taking secondary demographic data of the person and where the person does not have a NIN, register such person (where it is licensed to do so) or refer such person to a NIN registration centre.
. Only licensed public or private agencies shall capture and transmit biometric to the NIDB;
- Only the NIMC, Nigeria Police Force and other related security agencies shall store biometric data;
- All service providers of transactions listed in the Mandatory Use of the NIN Regulation 2017 must either directly obtain a license or through any licensed verification & authentication agents carryout verification & authentication of persons requesting/eligible for such services with his/her NIN;
The statement added that “in the coming days, NIMC will advertise its request for Expression of Interest from interested applicants for the provision of selected services under the National Identity Management System (NIMS) program. This will commence the process of selection of the frontend partners for the implementation of the digital identity ecosystem.”
Engr. Aziz expressed gratitude to President Buhari and Vice President, Prof. Yemi Osinbajo, as well as members of the FEC, NASS, the World Bank, the French development agency – AFD, the European Union/EIB and members of the Harmonisation Committee, including industry stakeholders “whose expertise and contributions fostered harmonious discussion and created the platform for the development of the roadmap.”
Giving a background to the evolution of the strategic roadmap for the new digital identity ecosystem in Nigeria now to be fully implemented, the NIMC statement explained:
“In December 2016, and with the assistance of the World Bank, a high-level Policy Roundtable with stakeholders on Identification was held in Abuja.
“The Roundtable highlighted the role of digitally-enabled identity in Nigeria’s economic and social development, and possible options and steps to developing identification in Nigeria.
“The Roundtable noted that preparing a strategic roadmap for Nigeria’s identity program is an important next step for the identity ecosystem in Nigeria and leveraging digital identity to develop and transform our nation.
“The focus of the ecosystem approach is to ensure every individual in Nigeria is given a unique identity number within the next 3 – 5 years. To this end there were extensive stakeholder consultations in 2017.
Nigerian Exchange Limited (NGX) has launched the NGX Net-Zero Programme to guide listed companies toward clear carbon reduction pathways and enhanced climate disclosures aligned with global investor standards.
NGX
The high-level launch engaged chief executives of quoted firms alongside development partners including German Investment Corporation KfW, DEG, and African Foresight Group (AFG), NGX’s implementation partner. Issuers and investors discussed financing decarbonisation, sustainability practices, and attracting climate-aligned capital.
NGX Group Chairman Dr Umaru Kwairanga described the initiative as concrete climate action, commending partners for two years of groundwork. “Today marks leadership and decisive action. Climate change has become a core business imperative, with capital markets mobilising capital and setting standards,” Kwairanga said.
He positioned NGX Net-Zero to support emissions measurement, disclosure, capacity building, and sustainable finance access, urging CEOs to embrace it strategically rather than as compliance. Kwairanga reaffirmed NGX’s goal to make Nigeria’s capital market Africa’s green finance hub.
Group CEO Temi Popoola called climate action a business imperative, noting sustainability-embedded firms attract capital, manage risks, and stay competitive. DEG Management Board Member Monika Beck highlighted partnerships scaling impactful, commercially viable climate solutions.
The event closed with a ceremonial gong marking the programme launch and send-off for outgoing DEG Regional Director Bernd Telemann.
Nigerian Financial Intelligence Unit (NFIU) has hailed Nigeria’s removal from the European Union’s list of high-risk third countries for Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) as a landmark achievement endorsing the nation’s reform efforts.
Nigerian Financial Intelligence Unit (NFIU)
NFIU CEO Hafsat Abubakar Bakari said the delisting, contained in European Commission Delegated Regulation (EU) C (2025) 8460 adopted December 4, 2025 and effective January 29, 2026, affirms sustained AML/CFT and Counter Proliferation Financing (CPF) reforms.
The move follows Nigeria’s exit from the FATF Jurisdictions under Increased Monitoring after addressing strategic deficiencies, alongside Burkina Faso, Mali, Mozambique, South Africa and Tanzania.
Bakari noted the European Commission recognised Nigeria’s strengthened AML/CFT effectiveness, closed technical gaps, and fulfilled FATF Action Plan commitments leading to grey list removal in June and October 2025.
The delisting eliminates enhanced due diligence requirements for EU financial transactions, easing compliance, boosting cross-border flows, and enhancing Nigeria’s appeal for European trade, investment and partnerships.
The NFIU attributed success to President Bola Ahmed Tinubu’s political will and collaboration among National Assembly, law enforcement, regulators, judiciary, private sector and development partners.
The agency reaffirmed commitment to ongoing FATF, GIABA, EU engagement and domestic framework resilience to maintain international confidence in Nigeria’s financial system.
The Federal Government has directed all banks and fintechs to collect and remit 7.5 per cent value-added tax on certain electronic banking services, effective Monday, January 19, 2026, according to an email notice issued by payment platforms.
The VAT will apply to electronic banking charges, including mobile money transfers, USSD transaction fees, and card issuance fees, according to an email notice on Wednesday shared with customers by Moniepoint.
For example, if a bank charges N100 to make a transfer, the 7.5 per cent VAT will be applied to that service fee, not the money being sent.
“From Monday, January 19, 2026, we are required to collect a 7.5 per cent VAT, to be remitted to the Nigerian Revenue Service (formerly known as the Federal Inland Revenue Service).
“VAT will apply to certain banking services that include electronic banking charges such as mobile banking fees (transfers), USSD transaction fees, and card issuance fees,” the email read.
Other operators are expected to issue similar notices to their customers in the coming days. Services that will remain exempt include interest earned on deposits and savings, meaning customers will not pay tax on the returns from their accounts.
The NRS, formerly known as the Federal Inland Revenue Service, has set the deadline to ensure that all commercial banks, microfinance banks, and electronic money operators comply with the collection and remittance requirement.
Moniepoint stressed that this is not a price increase but a statutory obligation. “Moniepoint is required to collect and remit VAT to the Nigerian Revenue Service,” the company said in a statement.
The move is part of the government’s broader efforts to standardise VAT collection on digital financial services and expand revenue generation amid Nigeria’s growing digital economy. VAT on banking transactions is not entirely new; the NRS is now enforcing uniform collection rules across all platforms, ensuring compliance across the sector.
Customers have been assured that the new tax will be clearly itemised, with the VAT shown separately on transaction statements and reports.
In December, several commercial banks informed customers that the N50 stamp duty would be deducted on electronic transfers of N10,000 and above, following the commencement of provisions of the new Tax Act.
The charge, previously known as the EMTL, has now been formally reclassified as stamp duty and will be applied as a one-off fee on qualifying electronic transfers.
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