Nigeria’s Payment System Has Attracted $500 Million In Investment Over The Last Five Years, According To The Central Bank Of Nigeria

According to the Central Bank of Nigeria, the country’s payment system received $500 million in investments between 2015 and 2020.

Godwin Emefiele, Governor of the Central Bank of Nigeria, made the announcement on Wednesday while addressing the topic ‘Trends in Nigeria payments system: regulating the fintech digital playing field’ at the 31st conference for finance correspondents and business editors in Enugu.

“The high level of confidence in our payment system has attracted investment of approximately $500 million in firms run by Nigerian founders between 2015 and 2020,” he stated.

The governor, who was represented by the Deputy Governor, Corporate Services, Edward Adamu, stated that the country’s payment system had grown over the years through technical improvements and CBN regulatory support to become a robust system.

According to him, the financial industry, like other industries, was damaged by the disruptions caused by the COVID-19 epidemic, which resulted in an accelerated shift toward digital services.

According to him, the trend was expected to entice more investment from fintech firms.

He urged regulators to pay closer attention to developments in order to maintain the sector’s long-term safety and soundness.

“It is therefore critical that regulators keep pace with these exponential developments and leverage new knowledge and technology tools such as Regtech and Suptech to enhance the efficiency and effectiveness of their mandate,” stated the governor.

“From all indications, the digital revolution will be a focus for financial institutions in the months ahead, making fintechs a major industry driver.”

“As the global economy recovers from COVID-19, it is clear that fintech will play a larger role in ensuring resilient and sustainable recovery.”

“As a country with one of the world’s largest millennial populations (an estimated 62% of the Nigerian population is under the age of 25), fast smartphone growth driven by increasing affordability, increasing mobile penetration, and a rapid transition to 5G technology, Nigeria remains primed to be an active playground for digital transformation and cannot afford to ignore the fintech challenge.”

In terms of attempts to mitigate the impact of the epidemic, Emefiele stated that the bank, among other things, implemented steps targeted at decreasing the risk to financial stability.

According to him, the consequence of their efforts was a resilient payment system that has continued to satisfy the needs of Nigerian homes and companies.

He also stated that the e-Naira would be introduced in a few days as part of the bank’s attempt to accelerate development in the financial industry by harnessing cutting-edge technologies.

“The CBN decided to introduce a central bank digital currency, the e-Naira, which would help in attaining our goals of fostering greater inclusion through digital channels, supporting cross-border payments for businesses and firms, and providing a reliable channel for remittances inflows into the country,” he said.

“With the deployment of the e-Naira, Nigerians in remote areas will be able to conduct financial transactions using their digital as well as phone-based devices.”

He went on to say that by collaborating with our financial industry players, more Nigerians would be financially integrated.