Central Bank of Nigeria Unveils Nigeria Payments System Vision 2028
The Central Bank of Nigeria (CBN) has officially launched the Nigeria Payments System Vision (PSV) 2028, a strategic initiative designed to enhance financial inclusion, targeting 95 percent of the adult population within the digital payments landscape of Nigeria. This ambitious plan aims to revolutionize the way financial transactions are conducted across the country.
At the launch event in Abuja, CBN Governor Olayemi Cardoso outlined that PSV 2028 is a comprehensive roadmap intended to transform Nigeria’s financial ecosystem over the next three years. He emphasized the initiative’s potential to facilitate quicker digital payments and remittances throughout Nigeria by the year 2028.
The initiative is expected to integrate an additional 50 million Nigerians into the formal banking sector, bridging existing gaps in access to financial services. Cardoso highlighted that this framework builds upon the progress already made in Nigeria’s digital payments landscape, aiming to further drive a technology-centric and inclusive financial environment as Nigeria cements its position as a leader in Africa’s digital payment ecosystem.
“Today, we are launching more than just a payments strategy; we are unveiling a vision for how Nigerians engage in transactions, trade, save, invest, and contribute to an increasingly digital economy,” Cardoso remarked. He noted that Nigeria’s payments ecosystem has evolved into one of the most innovative in the world over the past two decades, contributing significantly to economic activity and financial inclusion, even if that impact isn’t fully acknowledged globally.
According to Cardoso, the financial roadmap is set to enhance payment infrastructure, decrease reliance on cash transactions, and bolster economic growth across the nation. He stressed that a substantial segment of the population is still outside the formal financial system, reinforcing the need for financial inclusion to be central to Nigeria’s economic aspirations.
PSV 2028 is built on a robust foundation, aiming to create a secure, inclusive, resilient, and globally competitive payments ecosystem. Cardoso projected that by 2023, access to financial services for Nigerian adults would still fall short, hence the updated vision strives for complete inclusion by 2028, allowing millions of market women, farmers, and young individuals to gain access to banking services.
Strategic Implementation Approach
The CBN Governor elaborated that the payments infrastructure has become a vital national asset, facilitating heightened productivity and lowering transaction costs. He stated that the success of PSV 2028 would hinge on effective implementation rather than mere documentation. “Execution will be the true measure of our success,” he affirmed.
Furthermore, Cardoso called for collaboration among various stakeholders—including government entities, financial institutions, fintech companies, technology providers, and academia—to ensure the initiative’s success. Under PSV 2028, the CBN aims to reduce cash circulation outside the banking system to below 40 percent of the total currency in use and plans to deploy over 10 million QR codes and tap-to-pay facilities across diverse sectors nationwide.
Additionally, the CBN aims to minimize fraud-related losses to less than 0.001 percent of total transactions through the integration of advanced artificial intelligence and identity verification systems. Cardoso highlighted the Nigeria Interbank Settlement System (NIBSS), which currently processes millions of instant transactions daily, most taking under 10 seconds. The bank intends to further enhance transaction speed, reliability, and security as part of this vision.
Addressing Transaction Fees for Digital Payments
During the launch event, NIBSS CEO Oyewo advocated for regulatory reforms to manage transfer fees associated with digital transactions, arguing that these costs pose significant barriers to the wider adoption of electronic payments. He asserted that an unnecessary burden of transaction fees and data costs can deter users from engaging in digital financial activities.
“For many Nigerians, the financial implications of transaction fees can be discouraging. If I need to send money and incur a cost, it becomes an issue. Therefore, I am a strong advocate for zero transaction fees,” Oyewo stated. He expressed the belief that financial data and applications should be accessible without fees to enhance user experience and accessibility in the payments ecosystem.
Advocating for the need to eliminate such fees, he remarked that similar initiatives have gained traction in other countries, suggesting that Nigeria should take the lead in this area. He contended that the collaborative efforts with NIBSS and the onboarding processes will result in increased usage, accessibility, and transparency within the payments landscape.
