What CBN’s new payment system means for businesses, Nigerians

One of the major barriers to financial inclusion in Nigeria has always remained the fact that millions of Nigerians still rely on cash for daily transactions, especially in rural areas due to infrastructure challenges such as network outages that can temporarily push users back to cash. Also, trust issues remain, particularly for high-value digital transactions, […]

One of the major barriers to financial inclusion in Nigeria has always remained the fact that millions of Nigerians still rely on cash for daily transactions, especially in rural areas due to infrastructure challenges such as network outages that can temporarily push users back to cash.

Also, trust issues remain, particularly for high-value digital transactions, prompting the need for informal trade that still reinforces the need for physical currency.

The CBN has stated in different fora that it is developing channels to boost digital transaction and discourage physical cash, which was birthed with the recent launch of the Payments System Vision (PSV) 2028 by the Central Bank of Nigeria (CBN) to drive digital payments and financial inclusion for businesses and Nigerians

What it means for businesses, Nigerians

At the heart of the new vision is a target of increasing financial inclusion to 95 per cent by 2028.

The apex bank also said that it plans to significantly reduce digital payment fraud, strengthen cybersecurity, and create an ecosystem capable of supporting economic growth and greater participation in the formal economy.

Checks by Daily Trust showed that the value of transactions through Point of Sale (PoS) terminals jumped by 79.03 per cent, or N8.29 trillion, to N18.78 trillion in the first three months of 2026 compared with N10.49 trillion in the corresponding period of last year.

According to data obtained from Financial Derivatives Company Limited (FDC), which is sourced from the Nigeria Interbank Settlement System (NIBSS), the value of PoS transactions stood at N6.08 trillion in January 2026; N6.58 trillion in February and N6.12 trillion in March.

Although the value of PoS transactions declined in March compared with the figure recorded for February, data obtained from NIBSS shows that the value of electronic payment transactions has generally maintained an upward trend in recent years occasioned by increased adoption of e-payment channels in the country.

This data indicated that the value of e-payment transactions hit a record N1.07 quadrillion in 2024 compared with N6003.36 trillion in the previous year.

Analysts attribute increased adoption of e-payment channels to factors, such as the CBN’s initiatives to promote the cashless policy, the impact of the 2020 Covid-19 crisis and the naira redesign programme introduced by the apex bank in late 2022.

Some of the key features of the new PSV include 24 hour resolution for failed transactions, 95 per cent financial inclusion among others.

Tackling fraud to shield businesses

Fraud and cybersecurity has been one of the major challenges of Nigeria’s financial market.

The PSV 2028 puts it at the center, with AI-driven monitoring and predictive analytics, a stronger Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) a national security operations center, and an industry fraud-intelligence sharing platform

Subsequently, the CBN’s Banking Supervision Department issued the baseline standards for automated AML in March 2026, giving deposit banks 18 months and other institutions 24 months to run AI and machine-learning monitoring with annual accuracy testing.

The Payments System Supervision Department ordered GPS geo-tagging on every POS terminal layered on device binding and a BVN fraud watchlist on the instant-payment side.

 

 

 

Financial Inclusion

 

 

 

A key pillar of the new framework is financial inclusion. Through its National Financial Inclusion Strategy (NFIS), the CBN has consistently pursued policies aimed at expanding access to credit, digital payments and financial literacy, particularly among women, rural populations and Micro, Small and Medium Enterprises (MSMEs). Cardoso used the occasion to reaffirm the apex bank’s commitment to increasing financial inclusion to 95 per cent by 2028.

 

 

 

“In 2023, a large proportion of Nigerian adults had access to financial services. Under Vision 2028, we aim to increase financial inclusion to 95 per cent and ensure that Nigerians have complete confidence in a secure and reliable payment system,” he said.

 

 

 

“It is not enough for institutions to record growth in numbers. The real measure of success is the impact on the lives of millions of Nigerians. We want to see less cash outside the banking system and lower transaction costs across the economy.”

 

 

 

The target underscores the CBN’s determination to bring more Nigerians into the formal financial system and reduce reliance on cash transactions.

 

 

 

AI powered fraud detection systems

 

 

 

Another major focus of PSV 2028 is strengthening security across the digital payments ecosystem. Cardoso disclosed that the apex bank aims to reduce fraud losses significantly through stronger BVN integration and the deployment of Artificial Intelligence powered fraud detection systems.

 

 

 

“People’s money must be safer in the digital financial system than under their mattresses,” he said. The governor also highlighted the role of innovation and open banking in shaping the future of financial services.

 

 

 

According to him, more than 100 licensed Application Programming Interfaces (APIs) are already operational, creating new opportunities for innovation, competition and fintech development.

 

 

 

Cardoso expressed optimism that Nigeria’s growing digital ecosystem could produce globally competitive fintech companies capable of competing on the world stage. “By 2028, Nigerian youths should be able to build the next global fintech unicorn from Lagos, Abuja or any part of the country,” he said.