CBN aims for 95% financial inclusion and quicker money transfers by 2028

The Central Bank of Nigeria has launched the Nigeria Payment System Vision (PSV) 2028. This plan aims to bring financial services to 95 percent of adults in Nigeria’s digital payment system.

At the launch in Abuja on Monday, CBN Governor Olayemi Cardoso said the PSV 2028 will change how financial transactions are done. He believes it will boost Nigeria’s digital economy over the next three years.

Cardoso mentioned that this plan will help Nigeria achieve quicker digital payments and money transfers across all regions by 2028.

He said the initiative is expected to add about 50 million more Nigerians to the formal financial system by 2028.

The CBN governor explained that this new framework builds on Nigeria’s current progress in digital payments. It aims to speed up the country’s move towards a more tech-driven financial system while keeping Nigeria at the forefront of Africa's digital payments.

“Today, we unveil more than a payment strategy. We unveil a vision for how Nigerians will transact, trade, save, invest, and participate in an increasingly digital economy.

“Over the past two decades, Nigeria’s payments ecosystem has grown to be one of the most active and innovative in the world. From instant payments and digital adoption to fintech-led innovation, our progress has often led the continent.

“While this progress has not always been fully recognized globally, its impact on economic activities, financial inclusion, and system strength is clear across our economy,” he said.

He added that the financial roadmap will enhance payment infrastructure. It will cut down on cash transactions and support the country’s economic growth.

The CBN governor insisted that financial inclusion must be central to Nigeria’s economic future. He pointed out that millions of Nigerians are still outside the formal banking system.

“The PSV 2028 builds on the strong foundations. It provides a plan for the next phase of change and aims to create a payment ecosystem that is secure, inclusive, strong, and competitive globally.

“Inclusion and not exclusion must define our future. In 2023, a very large number of Nigerian adults will have access to financial services.

“Under Vision 2028, I would like to see this reaching 95 percent inclusion. That means 50 million more market women, farmers, and young people will have a bank account or wallet, with their name and BVN protecting them,” Mr Cardoso said.

The CBN believes this vision will modernize the national payments setup in intra-African trade. The bank added that the plan will boost regional commerce and improve Nigeria’s competitiveness in exports.

According to CBN, making this vision a reality will change Nigeria from a passive player in global finance to an active driver of economic integration in Africa.

Implementation

The CBN governor stressed that payment infrastructure is now a key asset for the nation. It can improve productivity, lower transaction costs, increase transparency, and support trade and investment.

He noted that the success of the PSV 2028 initiative will depend on how well it is implemented, not just on paper.

“The success of PSV 2028 will not be judged by the quality of the document. It will be judged by how well we execute it.

“This vision, therefore, calls for ongoing teamwork from government agencies, financial institutions, fintech companies, tech providers, development partners, academics, and users of payment systems. Its success is a shared responsibility,” Mr Cardoso said.

Under the Payment System Vision 2028, the CBN plans to reduce cash outside the banking system to below 40 percent of total currency in circulation.

The apex bank also aims to set up over 10 million QR-code and tap-to-pay points across markets, transport hubs, rural areas, and commercial centers nationwide.

In addition, the CBN wants to cut fraud losses to less than 0.001 percent of total transactions by using artificial intelligence and advanced identity checks.

Mr Cardoso revealed that the Nigeria Inter-Bank Settlement System (NIBSS) processes millions of instant transactions each day, with most settlements done in under 10 seconds.

He added that the CBN plans to further enhance transaction speed, reliability, and security as part of the new vision.

Transfer fees

At the launch panel of Nigeria Payments Vision 2028, NIBSS CEO Premier Oiwoh spoke about the need to control fees for digital transactions. He said high transaction fees and data costs discourage people from using electronic payments.

Mr Oiwoh mentioned that excessive transfer fees push users away from transacting. He noted that financial data and apps should not have fees.

“And I always tell people, if you have N10,000 in your pocket and I’m going to make a transfer, I’ll pay N15, N100. That’s no longer N10,000. As a Nigerian, I’ll keep my N10,000 in my pocket.

“How do you deal with that? Also, I’m an advocate of zero transfer fees. I think financial data and apps should be free of charge. I don’t want to make a payment anywhere and then find out I have no data to complete that payment. When it comes to finance and payments, it should be free.

“It has already happened in some countries, and I think Nigeria should lead this change. With what we’ve built on NIBSS and the onboarding process, I believe we can achieve much more in usage, accessibility, trust, and transparency across the payment system,” Mr Oiwoh said.