…To Triple Digital Trade Through Payments Reforms
…Plans Dollar Dependence Cut in African Trade Payments
The Central Bank of Nigeria (CBN) has unveiled an ambitious roadmap aimed at digitising the country’s more than $21 billion annual diaspora remittances, reducing the cost of cross-border transfers, and positioning Nigeria as a leading digital payments and settlement hub in Africa by 2028.
The strategy, contained in the Nigeria Payments System Vision 2028 document, seeks to increase the share of remittances flowing through formal channels to 80 per cent by 2028 while leveraging diaspora capital to support trade under the African Continental Free Trade Area (AfCFTA).
According to the apex bank, Nigeria’s diaspora population of more than 17 million contributes about six per cent of the country’s Gross Domestic Product (GDP), but an estimated 40 per cent of remittance inflows still pass through informal channels because of high transaction costs ranging between seven and 10 per cent.
The CBN noted that recent reforms, including the integration of the eNaira with the Nigeria Inter-Bank Settlement System’s Instant Payment platform and the introduction of zero-fee cash transfer programmes, have already increased formal remittance capture to about 60 per cent.
The document also highlighted the rapid expansion of the Sub-Saharan African remittance market, currently estimated at $49 billion and growing by around 10 per cent annually. It said Nigeria’s growing digital financial ecosystem, with more than 150 million banked adults having access to eNaira wallets through USSD technology, provides a strong foundation for accelerating the transition to digital remittance services.
To achieve its targets, the CBN plans to collaborate with Payment Service Providers (PSPs) to introduce digital remittance incentives, including trade credits and utility bonuses for Nigerians abroad who remit funds through eNaira-enabled platforms.
The bank also intends to launch a “Diaspora Trade Ambassadors” initiative in collaboration with the Nigerians in Diaspora Commission (NiDCOM).
The programme will connect diaspora investors in countries such as the United States and the United Kingdom with Nigerian small and medium-sized enterprises operating in AfCFTA priority sectors, including agro-processing, fashion and the creative industry.
As part of efforts to deepen financial inclusion, the CBN plans to expand agency banking in underserved communities while licensing additional diaspora-focused money transfer operators integrated with the Pan-African Payment and Settlement System and the eNaira platform to enable seamless naira-dollar and naira-pound conversions.
A major objective of the strategy is to reduce Nigeria’s dependence on the United States dollar for intra-African trade by encouraging settlement in African currencies through digital payment platforms.
The roadmap sets a target of ensuring that 50 per cent of intra-African trade payments are routed through digital channels by 2028.
To support this goal, the CBN plans to adopt the ISO 20022 messaging standard for cross-border payments by 2026, introduce an intra-African payments passport licensing framework, and establish an African digital Know-Your-Customer (KYC) and identity system.
The apex bank also proposed the establishment of an Africa Inter-Governmental Agency Committee to coordinate payment policies across the continent, alongside a joint task force involving the CBN, the National Information Technology Development Agency (NITDA) and Afreximbank to strengthen interoperability and cybersecurity standards.
In another major policy direction, the CBN intends to reduce remittance costs to five per cent or below while increasing the formal remittance share to 75 per cent by 2027.
The document disclosed plans to interconnect Nigeria with African and global instant payment systems by the first quarter of 2027 to facilitate cross-border account-to-account payments, while fintech wallet incentive programmes are expected to commence in the third quarter of 2026.
The CBN also aims to increase cross-border transaction volumes by 20 per cent by 2027 and maintain payment system uptime of at least 95 per cent through enhanced application programming interface (API) interoperability.
Another key pillar of the vision is the integration of Central Bank Digital Currencies (CBDCs) and regulated stablecoins into Nigeria’s payment ecosystem.
Under the roadmap, the CBN plans to permit regulated stablecoin-based cross-border payments by 2026 and connect the eNaira with other CBDCs globally. It also intends to promote additional Pan-African payment service providers and participate in international initiatives such as the Bank for International Settlements (BIS) Innovation Hub’s Africa CBDC Group.
To strengthen regulatory oversight, the CBN proposed that licensed stablecoin issuers implement blockchain-based transparency measures, including real-time reporting of token issuance, redemption and reserve backing, while giving regulators secure, read-only access to monitor transactions and reserve adequacy.
According to the document, the proposed architecture would provide continuous, tamper-evident oversight of stablecoin supply and transaction flows, replacing periodic compliance audits with real-time supervision consistent with emerging international standards.
The apex bank is also considering expanding participation in the Nigerian Foreign Exchange Market by allowing qualified Payment Service Providers to serve as authorised liquidity providers for legitimate trade and remittance transactions, subject to prudential requirements.
To improve transparency, the CBN plans to introduce a standardised reporting framework requiring PSPs to disclose cross-border inflows, outflows and counterparties to strengthen anti-money laundering compliance and improve visibility into foreign exchange liquidity.
In addition, the bank wants Nigeria to increase acceptance of international payment cards and alternative payment platforms such as Visa, Mastercard, American Express, UnionPay, PayPal, Alipay, Google Pay and Apple Pay to attract more foreign exchange inflows, stimulate tourism and support exports of Nigerian goods and services.
The document identified major tourism and cultural events, including Detty December and the Calabar Carnival, as opportunities to drive international digital payments and foreign exchange earnings.
To support these initiatives, the CBN also proposed replacing the current Merchant Service Charge pricing framework with an interchange model that would better accommodate international card transactions and encourage wider acceptance of global payment systems.
If successfully implemented, the Nigeria Payments System Vision 2028 is expected to deepen financial inclusion, strengthen cross-border commerce, attract more diaspora investment, lower remittance costs, improve foreign exchange liquidity and position Nigeria as a regional digital payments and settlement hub under the AfCFTA framework.
(The Whistler)
