The Central Bank of Nigeria (CBN) has said the country’s instant payment infrastructure is one of the most advanced globally.
The apex bank’s director of payment system policy, Musa Jimoh, revealed this on Thursday during the second quarter (Q2) of the FintechNGR Regulators’ Forum webinar.
Jimoh attributed the progress in instant payment infrastructure to regulatory reforms and fintech innovation.
He said Nigeria’s payment landscape has evolved significantly over the years, placing the country at the forefront of financial innovation in Africa and beyond.
“Our payments happen within seconds and that’s a very big one for Nigeria,” he said.
“The CBN has issued regulations and guidelines on open banking and also established a regulatory sandbox to support innovation.”
He said Nigeria’s open banking framework offers multiple benefits, including improved customer experience, financial inclusion, and increased competition among providers.
Jimoh traced the country’s progress back to 2006 when the CBN introduced its first payment system vision, noting that a landmark directive followed in 2010, mandating the migration of all payment cards to chip-and-PIN.
“That directive was a major turning point. It enabled Nigeria to begin issuing EMV-compliant cards and signalled our commitment to a modern, secure payment system,” he said.
According to Jimoh, the CBN’s drive has since led to the rollout of initiatives such as the know-your-customer (KYC) policy, mobile money, agent banking, and the cashless policy.
“Today, Nigeria has issued over 160 different licences to institutions offering financial and payment services,” the CBN official said.
“We’ve also seen a major infrastructure upgrade, with banks and switching companies expanding capacity to handle the surge in transactions.”
He also highlighted the introduction of the bank verification number (BVN), which brought biometric identity verification into mainstream banking.
Jimoh said Nigerian banks are “sitting on huge volumes of data” that could power next-generation financial products, but noted that the fragmented nature of data collection has remained a challenge.
He said the CBN sees open banking as a way to harmonise data and promote innovation.
“Open banking allows developers to access bank data with customer consent and use it to create better financial services,” the director said.
“This will deepen competition, reduce costs, and enhance customer choice.”
Despite the promise of open banking, Jimoh acknowledged challenges, especially around API standardisation and cybersecurity.
He said the CBN has established dedicated workstreams to address the issues and is committed to developing a secure and transparent framework.
“The CBN aims to create an environment where openness, inclusiveness, and innovation drive economic resilience,” he said.
“With the right framework and stakeholder collaboration, open banking can transform Nigeria’s financial landscape.”
Jimoh reaffirmed the bank’s readiness to continue to work with stakeholders to promote innovation and accelerate financial inclusion across the country.
