Despite the rate at which innovations occur in the country’s payment system, the Central Bank of Nigeria (CBN) reports that approximately 36% of adult Nigerians have financial services.
The central bank has driven innovation in the banking industry and payment system, introducing technologies that have aided financial services that are regulated.
Financial product and service innovations have encouraged investment in fintech, competition among financial institutions, and increased consumer risk.
However, the CBN’s Deputy Governor, Corporate Services, Mr. Edward Lamtek Adamu, claims that the bank keeps up with all trends and fills financial gaps through enhanced regulations.
He stated this during a seminar titled “Trends in the Nigerian Payment System: Regulating the FinTech Digital Playing Field.”
The CBN governor called for increased regulatory scrutiny to ensure the financial ecosystem’s long-term safety and to promote inclusion for all.
He stated that the apex bank would continue to improve access to finance for individuals and businesses through digital channels to enhance financial inclusion, lower transaction costs, and increase credit flow to businesses.
‘Between 2015 and 2020, the high level of confidence in our payment system has attracted an investment of approximately $500 million in firms run by Nigerian founders,’ he said.
“It is therefore critical that regulators keep up with these exponential developments and leverage new knowledge and technology tools like Regtech and Suptech to improve the efficiency and effectiveness of their mandate.”
The CBN governor also revealed that the central bank is implementing its e-Naira project to ensure that all Nigerians are included and benefit from Fintech payment systems.
‘With the deployment of the eNaira, Nigerians in remote areas will be able to conduct financial activities using digital as well as features on their phone devices, and I believe that more Nigerians will be financially included as a result of our collaboration with our stakeholders in the financial industry.’