The Governor of the Central Bank of Nigeria, Olayemi Cardoso, has warned that slow, costly, and fragmented cross-border payment systems are limiting economic opportunities for millions, especially in developing countries.
Speaking on Thursday at the G-24 Technical Group Meetings held in Abuja, Cardoso said these inefficiencies block individuals and small businesses from fully participating in international trade and finance.
The G24 group includes emerging economies in Africa, Asia, and Latin America. Members include Nigeria, South Africa, Egypt, India, Pakistan, Brazil, Mexico, and others.
Cardoso highlighted that remittance corridors can cost more than six percent, settlements can take several days, and strict compliance rules often exclude micro, small, and medium-sized businesses.
“If people cannot move money easily, affordably, and safely across towns, borders, and continents, they cannot fully participate in modern economic life,” he said.
Digital Solutions Could Transform Payments
The CBN governor said digital tools could solve many problems. These include modern payment platforms, instant payment systems, interoperable networks, distributed ledger technology, and strong digital identity systems.
Such tools can lower costs, speed up transactions, improve transparency, and expand access for households and small businesses.
He pointed to Nigeria’s own reforms as proof that progress is possible. The CBN has strengthened oversight of payment providers, improved rules for agent banking, and enhanced interoperability across payment channels.
Nigeria’s Payment Reforms
Cardoso said the Payment System Vision 2028 will promote innovation, strengthen resilience, and expand financial inclusion.
Key initiatives include simplifying KYC and anti-money-laundering rules for low-value cross-border transactions, participating in the Pan-African Payment and Settlement System (PAPSS), and launching the National Payment Stack, a real-time platform that supports multi-currency and cross-border transactions. The CBN has also introduced platforms for Nigerians abroad, such as the Non-Resident Nigerian Ordinary Account and the Non-Resident BVN, to make remittances and investments easier.
He noted that remittance inflows now average about $600 million per month and could reach $1 billion soon.
Regional and Global Impact
Digital cross-border payments are reshaping global finance. They enable local-currency trade, reduce reliance on major reserve currencies, and strengthen South-South financial links.
Africa’s PAPSS demonstrates how regional payment networks can reduce costs, support small businesses, and enhance economic resilience.
Cardoso warned that digital payments come with risks. These include currency substitution, foreign exchange volatility, and systemic risks from non-bank providers. Central banks must remain central to reforms to protect financial stability.
READ ALSO:
- Cardoso Resets Agric Funding with Fresh ACGSF Board Inauguration
- CBN Opens FX Window to BDCs, Caps Weekly Access at $150,000
- CBN Doubles Down on Inflation Targeting, Warns of Liquidity Risks
- Natasha, Minister Trade Words Over Ajaokuta Funding
Finance Minister Wale Edun said Nigeria is driving domestic revenue growth through efficiency, transparency, and technology. Reforms include modernized tax laws, better compliance systems, and automation through the National Single Window.
Dr. Iyabo Masha, Director of the G-24 Secretariat, said many developing countries face rising debt costs and shrinking fiscal space. She urged policies that promote sustainable, job-rich growth, stronger regional trade links, and investment in human capital.
“These policies directly affect citizens’ daily lives and will determine whether economies can move from slow growth to lasting development,” she said.
Esther Ososanya is an investigative journalist with Pinnacle Daily, reporting across health, business, environment, metro, Fct and crime. Known for her bold, empathetic storytelling, she uncovers hidden truths, challenges broken systems, and gives voice to overlooked Nigerians. Her work drives national conversations and demands accountability one powerful story at a time.
