Nigeria Payments System Vision 2028 targets cheaper transfers, wider e-payment adoption and stronger cross-border trade as apex bank pushes digital transformation….
The Central Bank of Nigeria (CBN) has unveiled a comprehensive digital payments strategy aimed at transforming the country’s financial ecosystem, reducing the cost of international transfers and positioning Nigeria as a leading digital payments and settlement hub in Africa by 2028.
The roadmap, contained in the Nigeria Payments System Vision 2028 document, is designed to bring a larger share of Nigeria’s more than $21 billion annual diaspora remittance inflows into formal channels while using digital infrastructure to support trade and investment across the continent.
Under the plan, the apex bank hopes to increase formal remittance flows to 80 per cent by 2028, while leveraging diaspora funds to support businesses and cross-border commerce under the African Continental Free Trade Area (AfCFTA).
The CBN noted that Nigerians living abroad, estimated at more than 17 million people, contribute significantly to the economy, accounting for about six per cent of Gross Domestic Product (GDP). However, the bank said high transaction charges currently between seven and 10 per cent have encouraged many remittance recipients to rely on informal channels.
According to the document, about 40 per cent of remittance inflows still bypass formal systems due to these costs.
The bank said recent reforms, including the integration of the eNaira with the Nigeria Inter-Bank Settlement System’s Instant Payment platform and the introduction of zero-fee cash transfer initiatives, have helped improve formal remittance capture to about 60 per cent.
The CBN also highlighted the growth potential of Africa’s remittance market, noting that Sub-Saharan Africa currently receives about $49 billion in remittances annually, with the market expanding by approximately 10 per cent each year.
It added that Nigeria’s digital financial infrastructure, supported by more than 150 million banked adults with access to eNaira wallets through USSD technology, provides a strong foundation for expanding digital remittance services.
As part of the strategy, the apex bank plans to partner with Payment Service Providers (PSPs) to introduce incentives that will encourage Nigerians abroad to use formal digital channels.
The proposed incentives include trade credits and utility benefits for diaspora Nigerians who send funds through eNaira-enabled platforms.
The CBN also plans to launch a “Diaspora Trade Ambassadors” initiative in partnership with the Nigerians in Diaspora Commission (NiDCOM).
The programme is expected to connect Nigerian investors abroad, particularly those in countries such as the United States and the United Kingdom, with local small and medium-sized enterprises operating in key AfCFTA sectors, including agriculture processing, fashion and creative industries.
Beyond remittances, the payments roadmap seeks to reduce Nigeria’s dependence on the US dollar for African trade by promoting settlements in local currencies through digital payment networks.
The CBN has set a target of ensuring that at least 50 per cent of intra-African trade payments are processed through digital channels by 2028.
To achieve this, the bank plans to adopt the ISO 20022 messaging standard for cross-border payments by 2026, introduce an intra-African payments passport licensing framework and develop an African digital Know-Your-Customer (KYC) and identity system.
The strategy also proposes the creation of an Africa Inter-Governmental Agency Committee to coordinate payment policies across the continent, alongside a joint task force involving the CBN, the National Information Technology Development Agency (NITDA) and Afreximbank to improve payment interoperability and cybersecurity.
The bank further outlined plans to reduce remittance costs to five per cent or below while increasing formal remittance participation to 75 per cent by 2027.
According to the document, Nigeria aims to connect with African and global instant payment systems by the first quarter of 2027, allowing faster account-to-account transactions across borders.
The CBN also plans to introduce fintech wallet incentive programmes from the third quarter of 2026 and increase cross-border transaction volumes by 20 per cent by 2027.
Another major component of the vision is the integration of digital currencies into Nigeria’s payment ecosystem.
The bank said it plans to allow regulated stablecoin-based cross-border payments from 2026 and establish links between the eNaira and other central bank digital currencies globally.
It also intends to support the growth of Pan-African payment providers while participating in international digital currency initiatives, including projects under the Bank for International Settlements (BIS) Innovation Hub’s Africa CBDC Group.
To strengthen oversight of digital assets, the CBN proposed requiring licensed stablecoin issuers to adopt blockchain-based transparency systems that would allow regulators to monitor token issuance, redemption and reserve backing in real time.
The proposed system would replace periodic compliance checks with continuous monitoring designed to improve transparency and align Nigeria’s digital payments framework with emerging global standards.
The apex bank is also considering expanding participation in the Nigerian Foreign Exchange Market by allowing qualified Payment Service Providers to operate as authorised liquidity providers for legitimate trade and remittance transactions, subject to regulatory requirements.
To improve visibility into foreign exchange flows, PSPs would be required to provide standardised reports on cross-border inflows, outflows and counterparties as part of stronger anti-money laundering measures.
The CBN also wants Nigeria to attract more foreign exchange through wider acceptance of international payment platforms, including Visa, Mastercard, American Express, UnionPay, PayPal, Alipay, Google Pay and Apple Pay.
The bank identified major tourism and cultural events such as Detty December and the Calabar Carnival as opportunities to expand international digital payments, boost tourism earnings and support Nigerian exports.
As part of this effort, the CBN plans to replace the existing Merchant Service Charge framework with an interchange model designed to encourage broader acceptance of international cards.
If fully implemented, the Nigeria Payments System Vision 2028 is expected to lower remittance costs, deepen financial inclusion, improve foreign exchange liquidity, strengthen digital trade and establish Nigeria as a major payments hub within Africa’s growing economic landscape.
