Launch of Cross-Border Digital Payments Report in Nigeria
Desi Elmoye in Abuja
The Nigerian Federal Government has unveiled the report titled “Cross-Border Digital Payments and Identity in Nigeria under the AfCFTA,” urging stakeholders to capitalize on trade opportunities that will allow Micro, Small, and Medium Enterprises (MSMEs) to engage with the lucrative $3.5 trillion African Continental Free Trade Area (AfCFTA) market.
This significant report was presented in Abuja on Monday by Ibrahim Hassan Hadeziah, the Acting Chief of Staff to the President, during an event hosted by the Office of the Vice President in partnership with ODI Global as part of the Assistance for Investment and Trade in Africa (SITA) programme.
Hadeziah described the report as both timely and strategic, highlighting the robust collaboration between the leadership of the Vice President’s Office and the Federal Ministry of Industry, Trade, and Investment. He noted that this cross-border payments report aligns with Nigeria’s established goals, including the launch of the country’s digital trade strategy and a training initiative for local leaders.
According to Hadeziah, Nigeria is positioning itself as a leader in shaping the digital trade landscape across Africa, emphasizing the importance of remaining at the forefront of AfCFTA implementation. He pointed out that enhancing engagement with the AfCFTA will facilitate smooth cross-border trade for small and medium-sized enterprises, thereby opening new avenues for growth and job creation.
The report underscores the necessity of efficient cross-border payment systems supported by reliable digital identity frameworks, crucial to realizing President Bola Ahmed Tinubu’s vision of revitalizing the MSME sector in Nigeria. Hadeziah identified the Pan-African Payment System as an essential platform for cross-border transactions and noted the vital contributions of Nigerian fintech firms like Palmpay and Monypoint, which currently serve the largest user bases to drive adoption rates.
He reassured attendees of the Federal Government’s commitment to enhancing critical infrastructure, regulatory frameworks, and partnerships necessary for Nigeria not only to participate in digital trade but also to lead it. Hadeziah acknowledged the efforts of stakeholders, encouraging them to transform AfCFTA from a mere agreement into a $3.5 trillion trade powerhouse that would bolster domestic industries and promote intra-African commerce.
Intra-African trade, Hadeziah asserted, will hinge not just on large corporations but also on MSMEs empowered through digital commerce. He emphasized the need to address trust, identity, and logistics issues raised in the report to foster a thriving trade environment.
Temitla Adekunle Johnson, the Special Adviser to the President on Job Creation and MSMEs, commented on the report’s potential to fortify the MSME ecosystem in Nigeria. He remarked on the historically informal and inefficient nature of cross-border payments in Nigeria and Africa, noting that the introduction of Bank Verification Numbers (BVN) and National Identification Numbers (NIN) is beginning to rectify this challenge.
Adekunle-Johnson expressed confidence that the report’s recommendations would enable Nigerian SMEs to effectively access markets across the continent. Furthermore, Salih Dasuki, the Special Assistant to the President on ICT Policy, announced that the Vice President’s Office, in collaboration with developmental partners, is working on a framework to facilitate seamless cross-border payments for MSMEs. He stated that this initiative is a key component of President Tinubu’s “New Hope” agenda, which aims to enhance digital trade access for Nigerians.
Shuda Ahmed, Special Assistant to the President for Project Support in the Office of the Vice President, also commended ODI Global for their leadership in the research underpinning the report. He emphasized that without an efficient and affordable cross-border payment system, MSMEs across Africa would struggle to expand beyond local markets. The launch event was attended by officials from various organizations, including ODI Global, AfCFTA representatives, and key stakeholders from the National Information Technology Development Authority (NITDA), among others.
