Nigeria’s digital payments revolution has hit a historic milestone, prompting the Central Bank of Nigeria (CBN) to unveil a key industry alliance aimed at accelerating growth, tightening regulation and unlocking fresh opportunities across the financial ecosystem.

Driving the initiative is the newly inaugurated Payment Service Providers Committee, a high-level platform bringing together regulators, banks, fintechs and mobile money operators to fast-track decision-making and deepen collaboration in a sector that processed over 11.2 billion transactions worth more than N1.07 quadrillion in 2024 alone.

At a media briefing on Thursday, the Deputy Governor, Economic Policy Directorate of the CBN, Muhammad Sani Abdullahi, who co-chairs the committee, described the milestone as a turning point for the country’s financial architecture.

He noted that digital payments have now crossed the quadrillion-naira threshold for the first time.

“As we know, over the last number of years, the digital payment landscape in Nigeria has recorded remarkable growth. In 2024 alone, the system processed over 11.2 billion electronic transactions, amounting to over N1.07 quadrillion. This is the first time that digital payments crossed the quadrillion naira threshold,” he said.

The momentum, he added, has not slowed.

“In 2025, we’ve seen significant growth, and in the first few months of 2026 as well. This is an ecosystem that is significantly growing, with implications for inclusive growth, trade, and broader economic development.”

To harness this surge, he said the CBN is moving to institutionalise coordination across the ecosystem.

The committee, chaired by the apex bank and co-led by Abdullahi and the Deputy Governor for Financial System Stability, includes all licensed payment service providers, alongside key regulators such as the Nigerian Communications Commission (NCC), Nigeria Deposit Insurance Corporation (NDIC) and the Securities and Exchange Commission (SEC).

Abdullahi said the initiative is designed to “reinforce policy coordination, knowledge sharing, and ensure collective problem-solving,” while positioning Nigeria to retain its leadership in the global payments space.

“Nigeria is a world leader in payment service provision. The kind of technology and fintechs deployed here are far ahead of regional and continental peers. What we want to ensure over the next five to 10 years is that we continue to maintain this leadership,” he added.

The urgency is accentuated by the sector’s expanding role in driving monetary policy effectiveness, exchange rate stability, and financial system resilience. Abdullahi disclosed that the CBN will, within a month, roll out a new Payment Systems Vision document co-created with industry players, setting the direction for the next three years.

“What you’re going to see over the next couple of years is significant growth, growth that is inclusive, ensuring many more Nigerians can use digital financial services to alleviate poverty, grow businesses, and strengthen economic participation,” he said.

He also stressed that safeguards against illicit financial flows remain central to the strategy. The framework, he noted, will “avoid and take care of fraud-related practices, money laundering, and terrorism financing,” while helping Nigeria maintain compliance with global standards.

On the risk front, Deputy Governor for Financial System Stability, Philip Ikeazor, revealed that fraud levels have already seen a sharp decline, dropping by 50 per cent between 2024 and 2025.

“We have just come up with a new policy for automated anti-money laundering and fraud solutions. That would go a significant way in reducing incidents of fraud once implemented across banks and payment service providers,” he said.

Beyond policy, industry players say the real breakthrough lies in the creation of a unified platform for engagement, long demanded by operators frustrated by slow regulatory feedback loops.

Ikeazor acknowledged the bottlenecks of the past, where firms waited extended periods to interface with regulators, often relying on supervisory visits to resolve issues.

“But today, we have a platform that brings us all together,” he said. “A major bottleneck has been removed, the bottleneck of coordination, collaboration and joint systems thinking. What you’re going to see going forward is much faster movement, development, and improvement in this space.”

The inaugural meeting drew top officials from across the regulatory and financial ecosystem, signalling what stakeholders describe as a new era of alignment.

Chief Executive Officer of Enhancing Financial Inclusion and Advancement (EFInA), Foyinsolami Akinjayeju, described the committee as a critical safeguard for innovation.

“This platform provides an opportunity for exchange of ideas to ensure that innovation is not stifled, while regulation supports inclusive and sustainable growth.

“The potential of payment service providers to enhance financial inclusion is tremendous”, she said.

She noted that much of Nigeria’s progress in financial inclusion has been driven by non-bank players leveraging payment technologies, making collaboration essential to sustaining momentum.

For the Nigeria Inter-Bank Settlement System (NIBSS), the development marks a historic inflection point.

The Managing Director and Chief Executive, Premier Oiwoh, said the committee will deepen partnerships between banks and fintechs in ways that directly benefit consumers.

“Today was an amazing and very historic day for the country. The ultimate beneficiary of what happened here will be Nigerians. “This will position the country on the global landscape for success in financial services and payments across Africa and beyond”, he noted.

Industry operators corroborated, describing the platform as long overdue.

The Chairman of the Association of Licensed Mobile Payment Operators (ALMPO), Jay Alabraba, said the sector has been pushing for such collaboration for years.

“This was long in coming. It’s something we’ve been working with the CBN on to bring us together for this kind of collaboration.

“Our industry has grown over the years, and we are glad to have a forum where we engage not only with regulators but also among ourselves to ensure the right outcomes”, he said.

The Director of Payment System Policy at the CBN, Musa Jimoh, framed the initiative as a defining moment in Nigeria’s financial evolution.

“Today is a major milestone in the history of payment system development in Nigeria.

“We are going to have more collaborative discussions that will refine the system, make it more resilient, and more pervasive”, he said.

Jimoh added, “The Nigerian banking public and financial service consumers will be the beneficiaries.”

With quarterly meetings planned and specialised subcommittees set to tackle emerging issues, stakeholders say the Payment Service Providers Committee could become the engine room of Nigeria’s next phase of financial transformation.

They unanimously stated that the era of fragmented growth is over, as what comes next is coordinated scale, speed and global ambition. (The Sun)

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