As digital transactions accelerate across the economy, the Central Bank of Nigeria (CBN) is urging stronger collaboration among regulators, financial institutions, and technology providers to reform the country’s digital payment ecosystem.
CBN governor Olayemi Cardoso, urged emerging and developing economies to pursue coordinated reforms in digital cross-border payments, describing efficient payment infrastructure as a cornerstone for inclusive growth, financial stability, and deeper global economic integration.
Speaking at the G-24 Technical Group Meetings held in Abuja on Thursday, February 19, 2026, Cardoso emphasised that while digital finance holds transformative potential, persistent structural barriers continue to exclude households and Micro, Small and Medium Enterprises (MSMEs) from meaningful participation in global commerce.
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He noted that cross-border remittance corridors remain burdened by high transaction costs exceeding 6 percent on average, alongside settlement delays that can stretch across several days.
On average, sending money across borders costs more than 6% of the transfer amount, and sometimes significantly higher in specific corridors. That’s above the United Nations Sustainable Development Goal target of 3%.
These fees aren’t just a single charge they include service fees, exchange-rate markups, intermediary bank charges, and hidden administrative costs. Traditional models rely on multiple financial institutions between sender and receiver. Each adds a markup, driving up the prices especially for small transfers, where every dollar matters.
For many migrant workers and low-income families, this means a significant share of the money they send doesn’t actually reach their loved ones. According to Cardoso, these inefficiencies significantly weaken trade participation, constrain household financial resilience, and slow economic development across emerging markets.
He stressed that fragmented payment infrastructures and complex compliance requirements further compound the problem by limiting access for smaller economic actors.
According to the World Bank, remittances are a major income source in many developing economies — often exceeding foreign direct investment. So when transfer systems are inefficient, it’s not just inconvenience; it’s reduced financial security for millions of households.
For families relying on remittances, inefficiencies directly affect daily survival and stability.
•High fees reduce the actual income households receive.
•Delays mean families can’t respond quickly to emergencies.
•Unpredictable settlement times make budgeting harder.
Without deliberate reform, the CBN governor warned that the promise of digital finance risks benefiting only a narrow segment of the global economy rather than driving broad-based inclusion. At the same time, he cautioned that rapid expansion of digital payment ecosystems must be carefully managed to avoid macroeconomic vulnerabilities.
He identified potential risks including currency substitution, weakened monetary policy transmission, heightened foreign exchange volatility, increased capital-flow pressures, and regulatory fragmentation across jurisdictions. These risks, he argued, make coordinated policy design and international cooperation essential.
Highlighting Nigeria’s domestic reforms, Cardoso outlined a series of measures undertaken to strengthen the country’s cross-border payment architecture. The CBN has enhanced its anti-money laundering and counter-terrorism financing frameworks in alignment with global standards, implementing stricter screening protocols for cross-border transactions to safeguard financial system integrity.
To broaden participation in regional trade, the bank has introduced simplified KYC and AML requirements for low-value cross-border transactions, a move aimed at reducing entry barriers for Nigerian SMEs. These reforms are designed to facilitate faster and more accessible payments through the Pan-African Payment and Settlement System, thereby advancing intra-African trade and regional financial integration.
Cardoso also underscored the importance of innovation in building resilient payment ecosystems. Through its Regulatory Sandbox framework, the CBN is enabling fintech companies to develop and test secure, instant cross-border payment solutions under regulatory supervision. This approach, he noted, allows Nigeria to encourage innovation while maintaining oversight and risk control.
Reaffirming Nigeria’s commitment to collaborative global reform, the governor called for strengthened partnerships with the International Monetary Fund, the World Bank Group, and other international stakeholders to modernise the global financial architecture in support of developing economies.
Through his address, he positioned efficient cross-border digital payment systems not merely as technological upgrades but as critical economic infrastructure capable of expanding opportunity, strengthening resilience, and accelerating development across the Global South.
Outlook
Looking ahead, Nigeria’s reform trajectory suggests a gradual shift from costly, fragmented cross-border payment rails toward faster, interoperable, and more inclusive systems.
If current policy momentum is sustained, the combination of stronger compliance, simplified onboarding for low-value transactions, and fintech-led innovation could materially reduce transfer costs and settlement times over the medium term