CBN boss calls for reform to digital cross-boader payment system

By Mariam Abeeb

The Governor of the Central Bank of Nigeria, Mr Olayemi Cardoso, on Wednesday called for urgent reforms to digital cross-border payment systems to drive inclusive growth and strengthen global financial stability.
Cardoso made the call in a plenary speech delivered at the 2026 G-24 Technical Group Meetings held in Abuja.
Speaking on the theme, “Digital Cross-Border Payments, Global Finance, and Economic Transformation – Opportunities and Risks,” the CBN governor said efficient payment systems are central to economic inclusion and development.
He noted that economies cannot be more inclusive than their payment systems, stressing that difficulties in moving money across borders limit participation in modern economic life.
According to him, cross-border payments remain slow, costly and fragmented, particularly for developing countries, with global remittance corridors averaging over six per cent in transaction costs and settlement delays lasting several days.
Cardoso said digital innovation presents an opportunity to address these challenges through modern payment infrastructure, instant payment systems, interoperable digital platforms, distributed ledger technology and robust digital identity frameworks.
He explained that such systems could reduce transaction costs for remittances and trade, shorten settlement times, improve transparency and expand access for households and micro, small and medium enterprises (MSMEs).
The governor cited examples of reforms in other jurisdictions, including India’s Unified Payments Interface (UPI) and Brazil’s PIX, which have reduced remittance costs and enabled real-time settlements.
Highlighting Nigeria’s efforts, Cardoso said the CBN had modernised its regulatory and supervisory frameworks to keep pace with the evolving digital financial landscape.
He disclosed that the apex bank strengthened oversight of payment infrastructure providers, enhanced agent banking regulations to address anti-money laundering and counter-financing of terrorism (AML/CFT) risks, and improved interoperability across payment channels.
Cardoso also announced that the CBN is concluding work on a new Payment System Vision 2028, developed in collaboration with industry stakeholders and built around strategic priorities aimed at boosting innovation, strengthening system resilience and advancing financial inclusion.
As part of efforts to deepen regional integration, he said the CBN introduced simplified KYC/AML requirements for low-value cross-border transactions to encourage broader participation in the Pan-African Payment and Settlement System (PAPSS).
He added that the apex bank’s Regulatory Sandbox allows fintech firms to test cross-border payment solutions under supervision to ensure innovation does not compromise financial stability.
Cardoso revealed that Nigeria launched the National Payment Stack in June 2025, a real-time payment system built on ISO 20022 messaging standards and designed to support multi-currency and cross-border transactions.
He further stated that the CBN strengthened its AML/CFT frameworks in line with Financial Action Task Force (FATF) guidelines, including strict dual screening of cross-border transactions.
On remittances, the governor said the bank introduced new instruments such as the Non-Resident Nigerian Ordinary Account (NRNOA), the Non-Resident Nigerian Investment Account (NRNIA) and the Non-Resident Bank Verification Number (BVN) platform to enable Nigerians in the diaspora open and operate accounts digitally.
According to him, remittance inflows now average about $600 million per month, with projections to reach $1 billion monthly in the near term.
Cardoso also highlighted Nigeria’s participation in global fintech engagements, including discussions at the 2025 IMF Annual Meetings, to contribute to shaping emerging global standards.
Beyond efficiency gains, he said, digital cross-border payments are enabling local currency settlements in trade, expanding South-South financial integration and reducing reliance on a limited set of reserve currencies.
He referenced experiments such as mBridge and Dunbar, as well as Africa’s Pan-African Payment and Settlement System, as examples of initiatives promoting local-currency settlements and regional financial integration.
However, the CBN governor cautioned that digital payments also pose risks, including currency substitution, foreign exchange volatility, systemic importance of non-bank payment providers and regulatory fragmentation.
He warned that without proper coordination, digital cross-border payments could become fragmented across jurisdictions, undermine interoperability and weaken monetary sovereignty in emerging market and developing economies.
Cardoso emphasised that central banks must safeguard monetary and financial stability while modernising payment and settlement systems.
He said the G-24 has consistently advocated for a more inclusive global financial architecture and called for developing countries to actively shape emerging standards within a cooperative, rules-based international monetary system.