Central Bank Unveils Payments Vision to Curb Cash

The Central Bank of Nigeria has launched an aggressive financial strategy to drive the country toward a one-trillion-dollar economy. Dubbed the Payments System Vision 2028, the blueprint aims to drag an additional 50 million citizens into the formal banking system. Governor Olayemi Cardoso presented the four-year roadmap in Abuja, framing electronic payment channels as vital national infrastructure rather than simple transactional tools. The policy underpins a broader effort to reduce transaction costs, expand regional trade, and lift rural populations out of poverty.

Abuja wants digital transactions to become the dominant form of exchange across the country within the next four years. To achieve this, the regulator intends to shrink the volume of cash circulating outside commercial banks to below 40 per cent of total money in circulation. The apex bank plans to deploy ten million Quick Response code payment points and contactless tap-to-phone systems across markets, transport hubs, and rural communities. This widespread technological push aims to bridge the deep financial divide between urban commercial centres and isolated rural economies.

A drastic reduction in electronic fraud underpins the central bank’s strategy to win over skeptical citizens. The regulator has set a strict target to push electronic fraud losses below 0.001 per cent of total transaction values by 2028. The bank will rely on the tighter integration of National Identification Numbers and Bank Verification Numbers to police the system. Artificial intelligence tools will also monitor transactions in real time to intercept illicit activity. Cardoso acknowledged that previous inclusion campaigns stalled because consumers lacked trust in the security of digital wallets.

The framework actively prepares the domestic financial sector for deeper cross-border trade. By standardising open banking rules and application programming interfaces, Nigeria expects to lower the cost of sending and receiving regional remittances. The policy deliberately aligns with the Pan-African Payment and Settlement System to give domestic exporters a competitive edge under the African Continental Free Trade Area. Deputy Governor Muhammad Sani Abdullahi stated that smoother regional settlements will convert Nigeria from a mere adopter of foreign financial technology into a net exporter of digital solutions.

Regulatory sandboxes will allow local software developers to build and test blockchain applications and digital assets under official supervision. The central bank hopes this controlled environment will foster the growth of new homegrown financial institutions capable of competing globally. This structural pivot requires substantial corporate alignment. The success of the scheme depends entirely on how quickly telecommunications firms expand broadband access and how willingly commercial banks lower their transaction fees.