E-Financial
CBN Urges Fintechs, Payment Service Providers to Stick to Standards
The Central Bank of Nigeria has urged financial technology companies, payment service providers and Deposit Money Banks engaged in offering payment solutions to customers to ensure they adhere to policy framework and standards that guide their respective operations in the ecosystem in which they operate.
Mr. Musa Itopa Jimoh, Deputy Director, Payments System Policy and Oversight, Central Bank of Nigeria, stated this in Lagos in the week during the corporate launch of Xpress Payment Solutions Limited.
He explained that the CBN was trying to build an ecosystem that allows everyone to have equal opportunity to present and run his own system, adding that Fintech was introduced into payment system with the aim of deepening financial inclusion in Nigeria.
The event was witnessed by representatives of some state governments, Deposit Money Banks, fintech organisations, e-payment industries who commented on the quality and reliable services provided by Xpress Solutions.
The deputy director represented Mr. Samuel Okojere, Director, Payment Systems Management Department, CBN, who said the CBN made a commitment in 2011 to bring those that are outside the banking sector closer, hence the introduction of Fintech companies into payment space.
Okojere said: “What does CBN expect from the operators in the financial payment service providers? Number one is compliance with set standards. This is the only thing that can make you integrate to global best practices. If you are not complying with regulation, you cannot connect with the local one. There are rules that guide this service that we provide in Nigeria and also in the world.
“It is our joy today that our cards can go anywhere in the world and is being used. This is because we comply with the best practices, and I’m happy to hear that Xpress Payments has also competed in certification on PCIDSS.
“Our responsibility is to ensure that we all behave very well within the financial ecosystem. And so compliance is a major responsibility.
“I want to imagine that added to that responsibility of the board members is cyber-crime, you also check and ensure that you comply with all the directives of CBN. Actually, non-compliance can bring your company down.”
The director, who charged the board of directors and other stakeholders in the financial services to take privacy and protection of customers data seriously, disclosed that bringing more people on board so they can benefit from financial services that payment providers offer “is one of the core responsibilities of the Central Bank of Nigeria.”
He said the cashless policy introduced by the apex bank was also meant to encourage more Nigerians to adopt electronic payment.
“And again, to strengthen that, we came with a cashless policy basically to see how we can encourage people to adopt electronic payment option so that all these fanciful solutions that you have provided can be enjoyed. Without cashless policy, I can decide not to pay my tax in cash. If I pay my tax in cash, then you have no revenue, you are not even in equation.
“It’s only when I chose to make my revenue collection through electronic form that a solution becomes very effective. Central Bank is driving that through cashless policy and encouraging all Nigerians to adopt electronic means of payment.”
Oluwadare Owolabi, Managing Director/CEO, Xpress Payment Solutions Ltd, noted that every sector of human endeavour in the globe had been extensively characterised by technological disruption.
“The need to satisfy the ever-increasing demands of customers for better service quality and innovations that work within the e-Payment industry coupled with this technological revolution created the dream that necessitated the birth of the company we are celebrating today.
“Consequently, distinguished guests, we started the journey with a clear focus and understanding of the needs of our target markets which formed the bedrock of our core business drivers: Easy, Fast, Secure.
With these, our aim was to provide a stress-free experience for you by creating solutions that enable smarter living. This we knew from the onset can only be realised by the assemblage of experienced and exceptional team and deployment of the cutting edge technology.”
According to him, the commitment to deepen financial inclusion penetration in Nigeria and provide a seamless and hitch-free transaction experience for customers led to the creation of an array of e-Payment products and services by the organisation that had been embraced and deployed by some state governments in the federation and some commercial banks as well.
FirstBank has formally denied allegations of fraud in an ongoing court case filed by customer Dr. Agbai Eke, describing the claims as “entirely unfounded and false.”
According to a statement from the bank, their internal investigation points to “unprofessional and unethical dealings” between Dr. Eke and a former bank employee.
FirstBank claims these individuals used a personal relationship to conduct unauthorised transactions without the bank’s knowledge or involvement.
The bank said it has reported the matter to law enforcement authorities for further investigation.
Officials noted that suspects have already provided statements to investigators.
FirstBank also declined to provide additional details, citing the ongoing court proceedings.
“We will refrain from further comments to allow the Court to dispassionately determine the issues before it,” the bank stated.
The case gained public attention following reports by Thisday Newspaper and Arise Television, as well as through a circulating video regarding the legal dispute.
Nigeria is undergoing a significant shift toward digital payment methods, with cash payments projected to decline by 32 percent by 2030, according to Worldpay’s Global Payment Report 2024 (GPR).
This is because access to financial services in remote areas via smartphones has transformed millions of people’s access to the global economy.
According to the report, Nigeria led Middle Eastern and African countries in cash dominance for point-of-sale transactions, accounting for 40 percent of 2024 PoS value from 91 percent in 2019.
The report said the use of cash in Nigeria is higher when compared to the MEA region including Saudi Arabia with 22 percent in 2024, South Africa (30 percent), and the UAE (17 percent).
“Over the past decade, Nigeria has witnessed progress in financial inclusion. According to the World Bank, the percentage of banked Nigerians increased from 30 percent in 2011 to 45 percent in 2021. Similarly, South Africa’s banked population grew from 54 percent in 2011 to 85 percent in 2021,” it said.
The Nigerian Inter-Bank Settlement System (NIBSS) reported that the number of active bank accounts surged to 311 million in 2024, further underscoring the country’s rapid financial transformation.
The global report disclosed that account-to-account (A2A) transfers via the NIBSS Instant Payments (NIP) have emerged as the leading e-commerce payment method in Nigeria.
Furthermore, A2A payments via NQR are now the second most popular payment method at the PoS, trailing only cash. This surge in A2A usage underscores the growing adoption of instant payment systems in the country.
Recent data shows that electronic payment transactions in Nigeria rose to an all-time high of N1.07 quadrillion in 2024. This is a 79.6 percent increase from the N600 trillion recorded in 2023.
Beyond transaction value, the volume of e-payments also saw a substantial increase. The total number of transactions processed by NIBSS rose from 9.7 billion in 2023 to 11.2 billion in 2024, representing a 15.5 percent year-on-year growth.
Also, PoS transactions soared to N19.4 trillion in 2024, marking an 81 percent increase from N10.73 trillion in 2023.
Industry experts attributed the surge in electronic transactions to a combination of factors, including the cash scarcity experienced in early 2023 and the continued implementation of the Central Bank of Nigeria’s (CBN) cashless policy.
The GPR report highlights MEA’s progress in digital payments, with e-commerce transactions accounting for 29 percent of total value in 2014. By 2024, digital payments represented 49 percent, nearly matching the combined value of cash and card transactions (51 percent). By 2030, digital payments are expected to dominate e-commerce, making up 65 percent of transaction value.
“The shift is even more pronounced at PoS. In 2014, digital payments accounted for only 1 percent of PoS transaction value. By 2024, they had grown to one-third of the market. Worldpay projects that by 2030, digital payments will account for 47 percent of PoS transaction value, nearly equalling traditional cash and card payments,” it said.
Nigerian Computer Society (NCS) has expressed concern over the Federal Government’s decision to replace Remita Payment Service Ltd with the Treasury Management and Revenue Assurance System.
Dr. Sirajo Aliyu, president, NCS, who spoke a press conference in Lagos, highlighted the potential impact of the decision on Nigeria’s indigenous Information Technology (IT) sector.
Remita, a subsidiary of SystemSpecs Software Technology Group, has provided payment solutions for individuals and organisations for nearly two decades, maintaining a 100 per cent Nigerian workforce. The government’s move, announced on 4 March, has raised concerns about its implications for local IT firms and the wider economy.
Dr Aliyu warned that replacing Remita could send the wrong message to local IT companies, discouraging investment in homegrown technological solutions.
He emphasised that the Treasury Single Account (TSA), powered by Remita, was a fully indigenous project that had been globally recognised for its success.
“We are concerned that this decision could undermine confidence in Nigeria’s IT industry.”
“While the government has the right to make changes, such decisions should involve extensive consultation with stakeholders to avoid unintended consequences,” Aliyu stated.
He added that the TSA had improved transparency, increased government savings, and enhanced operational efficiency in fund management. The sudden replacement of the platform, he cautioned, could disrupt these benefits.
Prof. Charles Onyeukwu, vice-president, NCS, also urged the government to reconsider its decision, noting that Remita had been selected through a rigorous process involving both local and international firms.
He suggested that instead of replacing the system, an Application Programming Interface (API) could be introduced to allow additional service providers to integrate with it.
“We believe a collaborative approach would ensure continuity while enhancing the system’s functionality,” Onyeukwu said.
A memo from the Office of the Accountant-General of the Federation confirmed that the Treasury Management and Revenue Assurance System would be implemented in two phases, starting on 4 March 2025.
The new system is designed to streamline revenue collection and payments across ministries, departments, and agencies.
The NCS, Nigeria’s premier body for computing and IT professionals, has called on the government to engage with Remita and other stakeholders to find a solution that supports both national development and the growth of the indigenous IT sector.
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