The new guidelines, set to take effect on May 1, 2026, mark the end of the era of flexible identity modification.

By restricting BVN enrollment to individuals aged 18 and above and limiting phone number changes to a single instance, the apex bank is directly targeting the identity looping tactics used by fraudsters to mask illicit transactions.

The New Rulebook: What is Changing?

The Age Gate: BVN enrollment is now strictly for adults (18+), ensuring that the biometric database is populated by individuals with full legal accountability.

The Single Update Clause: Customers can only change the phone number linked to their BVN once. This closes a major loophole where fraudsters repeatedly updated contact details to intercept One-Time Passwords (OTPs).

The 24-Hour Watchlist: Financial institutions must now implement a temporary flag system. Any BVN linked to a suspicious transaction can be restricted for up to 24 hours, requiring the customer to provide immediate verification before further movement of funds.

Centralized Data Sovereignty: The CBN is asserting exclusive control over the BVN database, granting limited access only to licensed entities under strict security protocols.

Tracing Similarities: The Global War on Synthetic Identity

Nigeria’s move mirrors a global trend where regulators are moving away from knowledge-based authentication (passwords) toward biometric-locked identities.

India’s Aadhaar System: Much like the BVN, India’s Aadhaar, the world’s largest biometric ID system, introduced the Virtual ID (VID) and strict biometric locking features.

This was done to prevent Identity Cloning, which had previously cost the Indian economy billions in welfare leakage and banking fraud.

The UK’s Confirmation of Payee (CoP): The CBN’s 24-hour watchlist strategy shares DNA with the UK’s CoP and APP Fraud (Authorised Push Payment) regulations. In the UK, banks use real-time data sharing to flag discrepancies between a name and an account number before the money leaves the sender’s account.

Brazil’s PIX Security Brackets: To curb Express Kidnappings and digital theft, Brazil’s central bank introduced Nighttime Limits and stricter biometric triggers for high-value transfers.

The CBN’s new restrictions on data updates follow this logic: adding friction to the system to protect the user.

For the Nigerian tech ecosystem, these friction-heavy rules are a necessary evil. As Nigeria’s fintech sector matures, the cost of fraud, estimated to have the potential to hit ₦1.2 trillion annually if left unchecked, becomes a barrier to international investment.

By aligning BVN rules with Tier-1 global standards, the CBN is not just stopping fraud; it is increasing the trust quotient of the Nigerian Naira in the global digital economy.

For startups, this means more robust KYC (Know Your Customer) data, and for consumers, it means a safer, albeit more disciplined, banking experience.

Interest rates vary across providers with intervention funds being the cheapest, while commercial and digital lenders trade speed and flexibility for higher pricing.

Most government and development finance loans sit between 5% and 9% per annum, making them the most affordable options for eligible businesses.

Commercial banks typically charge higher rates, usually above 18% annually, while microfinance and online lenders record the highest effective costs.

Below is a breakdown of some of the most MSME-friendly loan options available in Nigeria right now.

Key Considerations for MSMEs

• Government and Development Finance Loans: Facilities from the Bank of Industry (BOI) and NIRSAL Microfinance Bank offer the lowest rates. However, applicants must meet strict eligibility conditions, including business registration, sector focus and, in some cases, compulsory training.
• Commercial Bank Loans: These come with higher interest rates but usually allow larger loan sizes and faster processing, especially for existing customers with strong account history.
• Microfinance and Digital Lenders: They provide quick access and minimal collateral requirements, but interest rates are often significantly higher when calculated annually.
• State-Specific Funds:
  Schemes such as the Lagos State Employment Trust Fund (LSETF) remain among the most competitive for businesses operating within Lagos State.

The Top 10 MSME-Friendly Loans in Nigeria

1. FGN Bank of Industry (BOI) MSME Fund

This fund targets small and medium-scale enterprises across priority sectors. Interest rates range between 5% and 9% per annum, with a maximum loan size of ₦10 million per applicant.

Detailed application guidelines are available on the Bank of Industry’s official website.

2. AGSMEIS Loan (NIRSAL Microfinance Bank)

The Agri-Business/Small and Medium Enterprise Investment Scheme (AGSMEIS) is an initiative of the Bankers’ Committee and the Central Bank of Nigeria. Loans are disbursed through NIRSAL Microfinance Bank.

Applicants can access up to ₦10 million at 9% interest per annum, with a tenor of up to seven years and an 18-month moratorium. No physical collateral is required.

Eligible businesses span agribusiness, manufacturing, mining, ICT and the creative sector.

Eligibility Highlights:

Applicants must operate a registered business, possess a BVN and valid ID, complete mandatory EDI training, submit a viable business plan and have no outstanding loans under similar intervention schemes.

Application Process:

Applications are completed online through the NIRSAL MFB portal, following compulsory EDI training and document submission.

3. Lagos State Employment Trust Fund (LSETF)

Established under the Lagos State Employment Trust Fund Law of 2016, LSETF provides funding to Lagos-based MSMEs to support job creation and enterprise growth.

The fund offers loans at 5%–9% interest, with a maximum facility of ₦5 million, strictly for Lagos residents and businesses operating within the state.

4. UBA Micro Business Loan

UBA’s Micro Business Loan provides funding of up to ₦5 million for MSMEs across trade, services and agribusiness. Interest is typically around 0.75% monthly (approximately 9% annually).

Applicants usually need an existing UBA account and can apply via branch, mobile app or USSD channels. Repayment structures are often tailored to business cash flow.

5. Wema Bank Female Support Loan (SARA by Wema)

Wema Bank’s SARA initiative supports female-owned businesses with access to finance, training and mentorship.

Loans are offered at single-digit interest rates, generally around 9%, often without collateral. While maximum loan size varies, the scheme focuses on long-term business growth and financial inclusion for women.

6. BOI Microfinance Bank (BOIMFB)

BOIMFB provides working capital loans to MSMEs, typically priced at about 4% monthly on a reducing balance.

Facilities are short-term, usually up to 12 months, and designed for businesses with at least one year of operating history. Collateral requirements are flexible.

7. Access Bank SME Loans

Access Bank offers multiple SME loan products, including instant and sector-specific facilities.

Requirements generally include CAC registration, BVN, TIN, consistent turnover and a minimum operating history of one year. Interest rates vary by product, with personal guarantees commonly required.

8. FCMB BOI Gender Loan / SheVentures

FCMB supports women-owned businesses through its SheVentures platform and BOI-linked gender funds.

Options range from zero-interest loans up to ₦10 million (short tenor) to larger BOI-backed facilities of up to ₦300 million at 16% per annum. Mandatory training applies to most schemes.

9. Baobab Microfinance Bank SME Loans

Baobab offers tiered loan products for businesses with at least one year of operation.

Loan sizes range from ₦50,000 for mini micro loans to ₦150 million for SME facilities, with tenors extending up to 60 months. Interest rates and requirements vary by loan category.

10. Stanbic IBTC SME Short-Term / TOD Loans

Stanbic IBTC provides short-term business loans and overdraft facilities.

SMEs typically require a minimum of six months’ account history, CAC registration, financial statements and tax records.

Some instant loan products attract interest of about 4% per month, with tenors usually capped at 12 months.

It is important to note that loan terms, interest rates and eligibility requirements are subject to change. MSMEs are advised to confirm current conditions directly with the respective banks or fund administrators before applying.

In the latest data released by the Nigeria Inter-Bank Settlement System (NIBSS), this biometric identity system hit a new milestone in 2025, climbing to 67.84 million enrolled Nigerians, up 6.87 percent from the previous year, a rise of about 4.36 million new registrations.

Launched in 2014 to give every bank customer a unique, 11-digit identity, the BVN has grown from a regulatory tool to a cornerstone of Nigeria’s digital financial identity framework, one that bolsters security, curbs fraud, and makes formal financial inclusion possible for millions previously outside the system.

Behind the numbers are stories of ordinary Nigerians, traders setting up point-of-sale terminals in markets, students opening their first savings accounts, and diaspora workers securing remote access to services back home.

Many older accounts were updated and newly issued as regulators tightened rules requiring BVN (alongside National Identification Numbers) to access banking services, pushing more people to formalise their financial identities or risk restrictions on their accounts.

The steady climb also reflects policy initiatives that extend beyond Nigeria’s borders. With the introduction of Non-Resident BVN (NRBVN) options, Nigerians abroad can now register without setting foot in the country, bringing the diaspora into the fold of the nation’s formal financial system for the first time.

While the BVN count now eclipses 67.8 million registrations, analysts note there remains a gap between BVNs issued and the total number of active bank accounts, suggesting opportunities still exist to deepen financial inclusion, particularly among underbanked populations.

As Nigeria’s banking sector continues its digital evolution, each new BVN isn’t just a number, it’s a gateway to services, credit, and economic opportunity for the everyday Nigerian.

Each one serves a different purpose in banking, identity verification, and taxation.

BVN (Bank Verification Number)

The BVN is an 11-digit biometric ID used across the banking industry. It helps banks confirm a customer’s identity and protects accounts from fraud.

The Central Bank of Nigeria (CBN) regulates the BVN system, while commercial banks issue the numbers to their customers.

Benefits to Business Owners

• Opening Accounts: Every individual who owns or signs on a bank account must have a BVN.
• Credit Access: Banks rely on BVN records to verify identities and review credit history. The CBN also requires BVN before any credit facility is approved.

NIN (National Identification Number)

The NIN is issued by the National Identity Management Commission (NIMC) to all Nigerian citizens and legal residents. It is the primary national identity number and is now linked to many government services.

It is also mandatory for registering new businesses with the Corporate Affairs Commission (CAC) and doubles as an individual’s TIN.

Benefits to Business Owners

• Business Registration: CAC requires a valid NIN for verifying the details of all directors, shareholders, and proprietors.
• Linked to TIN: For sole proprietors, the NIN automatically becomes the Taxpayer Identification Number.

TIN (Taxpayer Identification Number)

The TIN is issued by the Federal Inland Revenue Service (FIRS) and the Joint Tax Board (JTB). It is used for tax administration and is compulsory for businesses that want to stay compliant.

Benefits to Business Owners

• Tax Compliance: You need a TIN to file tax returns, deal with FIRS, and secure a tax clearance certificate.
• Corporate Accounts: No corporate bank account can be opened without a TIN.
• For Individuals: Sole proprietors do not need a separate TIN; it is automatically generated from their NIN and verified through their NIN/BVN.
• For Registered Companies: A company’s CAC registration number (RC Number) doubles as its corporate TIN, and this number appears on the CAC certificate.

For business owners in Nigeria, securing your NIN and BVN should be the first step, since both numbers work together for banking, identification, and basic tax registration.

Once you register a Limited Liability Company (LLC), it is issued its own corporate TIN through its CAC registration number.

Staying compliant with these requirements ensures your business runs smoothly and avoids unnecessary regulatory issues.

Speaking at the unveiling recently in Lagos, Yetunde Faulkner, acting managing director of Fast Credit Finance Company Ltd., said the essence of the partnership is to ensure that micro, small, and medium enterprises (MSMEs) become scalable and sustainable through improved access to affordable finance.

“We are here to engage with EDC’s partners, who are SMEs, and provide them the opportunity to access single-digit interest-rate financing through Fast Credit.

“We are offering any amount of loan, starting with N5 million, under a partnership with one of our developmental finance partners, BOI, at a flat monthly interest rate of 0.75 percent, which amounts to nine percent per annum,” she explained.

Faulkner noted that Fast Credit has committed N2 billion to the SME financing partnership, to help entrepreneurs grow revenues faster than costs and remain sustainable.

She added that the loan offering is expected to enable MSMEs to create more jobs, something the Nigerian economy urgently requires.

“We will be touching lives and families, and that, in itself, is one of the goals of Fast Credit, to make a tangible impact in the lives of everyday Nigerians, especially those in Lagos,” she added.

Dr. Nneka Okekearu, director of EDC, described the partnership as a historic step in bridging the funding gap confronting entrepreneurs.

“We have collaborations with several commercial banks, but the double-digit interest rates at which loans are offered have made it tough for entrepreneurs.

“Today, we are doing something historic. We are signing an agreement with Fast Credit for single-digit loans for our members,” she said.

Dr. Okekearu emphasised that access to single-digit credit will significantly boost business productivity.

According to her, manufacturers, for instance, will be able to expand output, while many MSMEs will create more dignified and fulfilling jobs for young Nigerians as they scale up.

“Someone who previously had just N2 million to transact business now has access to N10 million, and that means increased production capacity and healthier margins,” she explained.

She disclosed that entrepreneurs within EDC’s network who meet the requirements will be able to access N5 million at a single-digit rate of nine percent per annum.

Aviomoh Daniel, executive director at Fast Credit, outlined some of the criteria that finance firms consider before extending loans to MSMEs.

“We look out for business worthiness, profitability, and the character of the entrepreneur. Collateral is the last thing any credit firm considers. To be business-credible requires structure, and for security, it is better to register as a limited liability company,” he said.

Feyikemi Odunuga, a business consultant, applauded the collaboration between EDC and Fast Credit for creating easier access to capital for entrepreneurs.

“I feel very good about it. I actually came to represent several of my mentees who always need funding.

“I will help them put things together so they can access the loan. I am a service provider, so this is particularly important for those in the manufacturing sector,” she said.

Kachi Salvation, an EDC alumnus, also described the initiative as “amazing,” noting that it will benefit a large number of businesses.

“A lot of businesses are going to take advantage of this initiative. They will also train women on how to manage their businesses, and this will be done monthly.

“The single-digit interest rate is a huge relief for businesses,” she added.

To access the single-digit loan, applicants are required to provide documents, including a 12-month bank statement, BVN, NIN, TIN of key directors, company profile, valid identification, passport photograph, and verifiable credit history.

Other requirements include a direct debit mandate, utility bill, guarantor details, vendor invoice, as well as collateral valuation and perfection.

The event will take place on Friday, November 14, 2025, at Landmark Event Centre, Lagos, bringing together financial leaders, innovators, regulators, and entrepreneurs from across the continent for the ultimate financial experience.

Building on the success of previous editions, ACE 2025 stands as a bold declaration that Africa’s financial future will be written by its people, its innovations, and its courage.

The Expo aims to empower individuals and businesses through data-driven credit access, financial literacy, and collaboration that bridge the gap between dreams and opportunity. This movement is rooted in the five pillars of the ACE Mission: Connect. Trust. Empower. Educate. Include.

Pioneering the Infrastructure of Trust: The CreditRegistry Story

Founded in 2003, predating the CBN regulatory licensing of credit bureaus, CreditRegistry did more than pioneer credit reporting in Nigeria; it catalyzed it and achieved a global first by integrating biometric technology into its credit system, a foundational step that later informed the development of the nation’s Bank Verification Number (BVN).

For more than two decades, this legacy of innovation, advancing transparency, trust, and financial inclusion has defined CreditRegistry’s mission.

ACE 2025 continues this legacy by spotlighting new initiatives designed to make credit relatable, responsible, and rewarding.

Key innovative programs over the years at ACE include:

• Black Friday on Credit: ACE 2025’s groundbreaking initiative and Africa’s first credit-powered shopping experience, showcasing how responsible credit use can power consumer spending and stimulate economic growth. This concept directly rewards financially disciplined consumers with access to premium products at the best discounted prices – on credit!
• #PowerfulByNature Movement: Highlight of ACE 2024, which convened female financial leaders to spotlight the powerful role of women in Africa’s economic
• Africa Consumer Credit Academy (ACCA): Born from ACE 2023, this strategic platform continues to shape a new era of financially literate African citizens. The Academy is a critical enabler of Nigeria’s national goal to achieve 50% consumer credit access by 2030. ACCA continues its mission to reach 3 million families and businesses by 2030, equipping Africans with the knowledge to manage finances, build credit, and advance pan-African Through youth-centered programs like Project Launchpad and the engaging street interviews of ‘Naija Talks Credit’, ACCA is nurturing a new generation of financially aware entrepreneurs across Nigeria.

Strategic Collaborations and Industry Masterclasses

ACE 2025 will also mark the official signing of a Memorandum of Understanding (MoU) between CreditRegistry and MANSA (Afreximbank’s digital identity platform) for the Africa Trade Gateway (ATG), and CreditRegistry and the University of Lagos (UNILAG) to embed financial literacy in the curriculum to improve entrepreneurship.

These collaborations will enhance data sharing, research, and human capital development, further solidifying the academic and institutional foundations needed to advance Africa’s credit and trade ecosystem.

The Expo features dynamic Masterclasses and Panel discussions tailored to the diverse needs of Africa’s financial ecosystem:

• Masterclass for SMEs: Highlighting the MANSA Digital Initiative platform, led by Afreximbank, to promote trust and transparency in trade finance through the Africa Trade Gateway, thereby helping SMEs position themselves for cross-border growth under the AfCFTA

• Masterclass for Lenders: Chaired by the Chartered Institute of Bankers of Nigeria (CIBN), to help participants create a blueprint for designing and deploying affordable, inclusive financial products to effectively capture the massive retail and underserved MSME
• Masterclass for Consumers: Facilitated by leading financial experts to help individuals unlock their credit power, master their profiles, boost their SMARTScores, and seize better financial opportunities.
• SMARTScore – Smart Life Panel: A discussion focused on how analytical data can improve transparency, reduce lending risks, and build confidence in the future of Africa’s digital credit and large-scale retail lending.

The Vision of Generational Wealth

In her address, Dr. Jameelah Sharrieff-Ayedun, managing director/CEO of CreditRegistry, emphasized the importance of partnership and shared vision:

“We are building bridges between dreams and opportunity, between data and dignity, and between ambition and access. There is a well-known proverb: ‘Give a person a fish, and they eat for a day; teach them to fish, and they eat for a lifetime.’ At CreditRegistry, we believe we must go further: “Empower them to own the pond, and they will feed their future generations.”

She added that ACE is about creating pathways for real financial empowerment, that builds generational wealth.

Africa Credit Expo extends deep appreciation to its Founding Sponsor, Afreximbank, for its commitment to Africa’s credit and trade transformation.

Also recognized are strategic partners, whose collective support continues to drive ACE’s mission of financial education and inclusion.

More than an event, ACE is a movement, one that places people at the heart of Africa’s financial story.

With over 5000+ attendees over the years across sectors including banking, fintech, insurance, MSMEs, and government, the Expo serves as a dynamic platform for creating the credit culture we want to see on the continent.

As Dr. Jameelah concluded:

“The true measure of ACE 2025 lies in the actions that follow, the ideas implemented, the partnerships formed, and the lives transformed. Together, we are writing a new chapter for Africa’s financial story, one defined by empowerment, education and inclusion.”

Event Details: Date: Friday, November 14, 2025 Time: 8:00 AM Prompt Venue: Landmark Event Centre, Lagos

Register: africacreditexpo.creditregistry.ng | Registration for masterclass: here.

For Inquiries, please contact: Faith: 0908 797 2070 | Tolu: 0708 915 8573 info@creditregistry.ng Follow: @AfricaCreditExpo | @CreditRegistry

Introduction

“Moniepoint don finish this market, Dayo. I am shutting down my agency banking division. Na just Opex dey there, I no see business. In fact, I need a foreign investor or startup to take it out of my hands before the end of the year. Plus, the recent CBN circular capping cash withdrawals at ₦100,000, you better focus on merchant payment collections. It has a higher margin sef.”

Ha! I exclaimed in response as I listened to a mentor over a cup of tea around Ikoyi. I was in Lagos in April to pitch our payment terminal solutions to few commercial banks, so I took some time out to meet my mentor who is an industry veteran with an active fintech in Nigeria with more licenses than we do.

But how did we get here? This POS agent turned pure water situation that we now find ourselves in.

Where there is so many POS agents that it would be considerable if the Central Bank of Nigeria stop issuing the license citing market saturation.

Where it is not unthinkable to cease customer acquisition for the business. Where getting a super-agent license is almost laughable.

To understand this situation or even chart a way forward for what agency banking could and should look like going forward, we need to understand where it’s coming from.

You see before POS Agents were ATMs. Yes, ATMs. ATMs that have now become building props; analogue jewelry serving as mere objects of decor to the bank’s building than as the store box of financial transactions they used to be.

Sometime in 2012, I got invited to a conference by Keystone Bank as one of their banking partners. This was thirteen years ago when I started my foray into the Nigerian Banking/Fintech space after taking over my father’s real estate business; one of the divisions of the business focused on finding high traffic and secured pedestrian locations where ATMs can be installed for commercial banks.

“We need 120,000 ATMs nationwide to serve the cash needs of Nigerians”. Seventeen-year-old me listened attentively to a representative of the CBN as he gave a lecture on Why banks need to improve their ATM Spread and Service Availability.

Around this time, a lot of the fast payment services we are now accustomed to were still at a nascent stage. In fact, few Banks could boast of internet banking or the quick mobile banking capabilities that are now synonymous with financial service delivery in Nigeria.

Today, the extent to which ATMs serve our cash needs is almost non-existent and the well-dreaded long ATM queues are now memories of a past replaced by POS Agents on every roadside peddling cash to Nigerians to care for it or should I say who can afford it.

Earlier this year (2025), banks borrowed over ₦8.2 trillion from the CBN in just 17 days to address cash shortages. Yet, the cash scarcity persisted. Customers, frustrated by long queues and empty ATMs, turned into a more accessible alternative: PoS agents.

If we needed 100,000 ATMs to serve Nigerian Cash Needs in 2012, surely over two million POS Agents peddling cash on the streets would be enough. I digress. Back to the topic at hand. A little trip down memory lane.

Agency Banking in the Beginning – A Vision for financial Inclusion

My AI Copilot tells me Agency Banking kicked off in 2013 with the first set of entrants such as Interswitch, Paga, and First Bank’s FirstMonie.

During this epoch (2013-2020), agency banking was strictly the purview of cybercafes – oh cybercafes – and business centers – primarily hubs for servicing document needs such as typing, printing, laminating, and photocopying – became the unlikely pioneers of Nigeria’s agency banking revolution.

These centers, somewhat trusted fixtures in their communities, were well-positioned to take on the additional role of financial service providers. And it made sense. With their existing infrastructure – computers, internet access, and a steady stream of foot traffic – they seamlessly integrated agency banking into their operations.

I recall multiple instances back at the University of Ilorin where I was faced with the difficult choice of trading N100 Paga Charge at the cybercafe or taking a N30 Taxi to face GTBank’s fluctuating ATMs at Tanke Junction.

According to Regulatory Framework for Agency Banking in Nigeria. The following entities are eligible for appointment as agents: Limited liability companies, sole proprietorships, Partnerships, Cooperative Societies, public entities, educational institutions, Trusts and any other entity which the CBN may prescribe.

If you asked anyone who cares, what the primary purpose of AGENCY BANKING Framework is in Nigeria? They’d say Financial Inclusion.

What is financial inclusion? Simply put, access to financial services.

But to what extent do agents provide access to financial services?

Do Agents provide access to financial services or access to cash? This brings us to where we are now.

Agency Banking as it is today – The New Pure Water Business

Originally intended to serve rural and underserved areas, these agents, often operating from roadside kiosks, shops, under umbrellas, or with as little as a table have now become the primary cash distributors in both urban and rural Nigeria.

With over 2.7 million PoS terminals compared to fewer than 21,500 ATMs nationwide, the imbalance is stark.

But for many Nigerians including myself, the convenience outweighs the cost. Unlike ATMs, PoS agents are everywhere, and they rarely run out of cash. Even for banks, the investment cost of a POS terminal is preferable to that of an ATM.

This shift has birthed a parallel cash economy. Some agents source cash through informal means—withdrawing large sums from ATMs meant for the public or buying cash from cash heavy businesses like fuel stations in exchange for digital transfers. This has created a shadow market where cash is a commodity, and access depends on who you know and how much you’re willing to pay. It is now common to find any shop offering PoS agent services.

The result? A system where cash is no longer free, and the poorest often pay the highest price.

So, the CBN responded with a mix of penalties and policy reforms. Most recent is the circular limiting cash withdrawal per day to N100,000, compulsory registration of PoS agents as businesses, and mandatory transaction routing through the right channel. At PayZeep, we have compliance checks in place for clients who rely on our agency’s banking APIs and white label PoS and mobile applications.

So, What’s next?

The future of agency banking – Giving the Agents Agency

As I think about the future of our agency banking business, one thing is clear: the future of banking in Nigeria will not be defined by marble halls or steel machines. It will be shaped by the people—by agents who bring financial services to the doorsteps of millions. But for this future to be sustainable, agency banking must evolve beyond the informal, cash-peddling model it has become.

How can we do this?

Understand that the Market Is Not Saturated—The Cities Are

Contrary to popular belief, the agency banking market is far from saturated. What’s saturated with are the cities. Rural and peri-urban areas remain underserved, and that’s where the next wave of growth lies. By strategically expanding into these regions, we can unlock new customer segments and deepen financial inclusion.

Expanding the Offerings and Looking the Part

The current landscape is dominated by makeshift setups, agents operating under umbrellas or in roadside stalls. While functional, these setups lack permanence, security, and professionalism. The next phase must prioritize structure and dignity and this role falls on the financial institutions.

Let’s eliminate the umbrellas and stick with the kiosks. Agency banking must move beyond cash-in/cash-out.

These agents can become low-cost real estate for selling a wide range of financial products and services:

Account Opening: Empowering Agents with Open Banking Tools

Super Agents can now leverage SANEF APIs to onboard customers directly at agent locations. These APIs allow agents to:

• Create Tier 1 and Tier 2 accounts instantly for individuals.
• Capture KYC data and submit it securely to banks.
• Issue digital wallets linked to mobile numbers.

If APIs like “Create Wallet by Bank” evolve to include broader access, such as linking to savings, loans, or insurance products, agents could become true frontliners of open banking. This would allow them to offer a full suite of financial services, not just basic transactions.

The Open Banking Nigeria API Standard supports this vision by enabling secure, consent-based data sharing between banks and third-party providers.

This means agents could eventually help customers compare products, switch banks, or access tailored financial tools, all from a kiosk. Imagine a super-agent location where you can open any bank account and get a debit/credit card immediately.

BVN & NIN Enrollment: Biometric Identity at the Last Mile

The Bank Verification Number (BVN) is a critical component of Nigeria’s financial identity system. Today, many rural dwellers still lack BVNs due to the distance from enrollment centers.

The National Identification Number (NIN) is also mandatory for SIM registration, banking, and government services.

Yet, many Nigerians, especially in rural areas, remain unregistered. By integrating biometric registration kits into agent locations, agents can:

• Enroll citizens for NINs.
• Update or verify existing NINs.
• Link NINs to BVNs and bank accounts.

This decentralization would drastically reduce onboarding friction and bring millions more into the formal financial system.

Card Issuance: Instant Access to Digital Payments

Some FinTech’s have already demonstrated the feasibility of instant card issuance at agent locations. This empowers customers with immediate access to digital payments, reducing reliance on cash. Imagine again, a situation where you can just walk into a bank’s agent location to replace your ATM card or file a transaction dispute.

Bill Payments & Tax Collection: Agents as Government Touchpoints

Agents already facilitate airtime top-ups and utility bill payments, but their role can expand to include:

• Tax collection for local and state governments.
• License renewals (e.g., driver’s licenses, business permits).
• Business Registration
• Social welfare disbursements and pension payments.

This turns agents into multi-service hubs, reducing the need for citizens to visit government offices and improving compliance through convenience.

One of our latest service offerings is targeted at local and state governments to empower youths in certain locations like markets and parks to deliver agency banking services and serves as Tax agents.

By expanding their capabilities and formalizing their infrastructure, agents can evolve from informal cash peddlers into true community bankers, trusted, tech-enabled, and deeply embedded in the financial lives of everyday Nigerians.

*Adedayo Awojobi is currently the COO of payZeep by Paymi Solutions ( a fintech company with pssp, ptsp and agency banking licenses). He is a seasoned entrepreneur and product management leader with over a decade of experience delivering impactful digital solutions across the fintech and enterprise software sectors.

A Bank Verification Number (BVN) to open an account; a National Identification Number (NIN) to access public services; a Permanent Voter’s Card (PVC) to perform your civic duty; and if you’re behind a wheel, a VIO clearance or risk fines. Now, even the NDLEA wants a biometric record. 

Unlike many developed countries where identification systems are integrated and citizen data is protected by strong privacy laws, Nigeria’s identity space is fragmented and duplicative. 

Countries like Estonia and Sweden use a single digital ID for banking, healthcare, and voting, while others like the UK, leveraging National Insurance Number, and the U.S. limit biometric collection and ensure data transparency.

In Nigeria, however, citizens must enrol separately for multiple IDs, usually submitting the same biometric data to different agencies with little coordination or oversight. 

This lack of interoperability creates inefficiency and also exposes personal data to greater risks, without giving citizens control over how their information is used.

Welcome to Nigeria’s identity maze, where every agency wants your face, but none can protect or guarantee what happens to it. There is saturation without structure.

A Nation of IDs, Not Citizens

Nigeria’s identity industry is an administrative overgrowth. Thirteen major identity systems currently operate across the country, each usually overlapping, and rarely integrated. 

As of July 2025, over 121 million Nigerians have registered for the NIN. But fewer than 60% of them enjoy reliable access to the public services that required registration in the first place.

The BVN, launched by the Central Bank of Nigeria and managed by NIBSS, has reached 64.8 million enrolments, despite Nigeria having over 231 million active bank accounts. 

The logic behind BVN was straightforward; tie every account to a unique identity. Yet banking access in rural communities is still sporadic at best and exploitative at worst.

The problem isn’t a lack of data, it’s that the data isn’t working.

The Cost of Being Counted

Every agency now wants to scan your fingerprint, snap your photo, and save your biodata. But when Nigerians need help, from resolving SIM reactivation to correcting a simple name mismatch, they face endless queues, crashing systems, and opaque processes.

Between 2023 and 2025, more than 430 cases of identity mismatches were reported, many leading to lost access to funds or public benefits. Even more troubling, over 6,000 foreign nationals, mainly from Niger, were found in the NIN database, leading to both security concerns and doubts about data accuracy and oversight.

In contrast, the NDLEA has taken biometric data collection to a new level, establishing a registry of over 59,000 inmates while simultaneously reporting 14 million Nigerians as drug abuse victims. The question arises: is the growing pool of personal data being used to rehabilitate and support people or simply to monitor and catalogue them?

Where is the Protection?

Despite the enormous volume of sensitive data being collected, Nigeria’s Data Protection Act is still largely toothless. The NDPR, the earlier framework, was a step in the right direction, but enforcement has been inconsistent. 

Citizens have no clear right to see, correct, or delete their own records. Inter-agency data sharing happens without transparency. Cybersecurity protocols are either absent or rudimentary.

We’re storing millions of records, but infrastructure is still vulnerable to basic breaches. Most systems lack end-to-end encryption. User passwords are often poorly protected. Some databases are hosted on outdated servers. It’s like building a bank vault with cardboard and asking citizens to trust it.

The Human Impact: A New Kind of Exclusion

When people are denied access to healthcare, banking, or education because their biometric records are “not found,” that’s not just a technical failure, but institutional abandonment. 

People are being locked out of essential services simply because data silos don’t talk to each other, and there’s no central accountability.

The most vulnerable groups, those in rural areas, the elderly, and women in informal economies, are being excluded from a digital society that claims to be inclusive. The language of technology hides the truth: you can now be poor, invisible, and digitally invalid.

From Data Capture to Digital Control

There’s a deeper issue at play. Nigeria’s identity obsession is starting to look less like governance and more like control. Identity is no longer a right, it’s a barrier. 

Government agencies claim they need these systems to improve service delivery, tackle crime, or manage welfare. But without integration, transparency, and security, what we have instead is a massive surveillance infrastructure, waiting to be abused.

We’re not just becoming citizens of a data state, we’re becoming profiles, without the power to decide how we’re represented or what happens to our information.

What Needs to Change?

Nigeria’s current course is unsustainable. We need more than another government committee or press release.

• A unified identity architecture must be built, where one ID can serve multiple purposes across verified agencies.
• Data security regulations must be enforced with real consequences for leaks or misuse.
• A fully empowered, independent Data Protection Authority should be in place to oversee how information is collected, stored, and shared.
• Citizens must be given data access rights, including the right to correct, challenge, or delete personal information.
• Most importantly, digital systems should enhance access, not deny it.

Conclusion: The Person Is the Point

We cannot continue to build an identity system where the data matters more than the people it’s meant to serve. Nigerians are not spreadsheets. We are not QR codes or fingerprints or poorly formatted PDFs. We are individuals who deserve dignity, privacy, and trust in our institutions.

Until the government stops treating digital identity as a checkbox and starts treating it as a responsibility, we will continue to live in a country where you exist only if the system agrees, and the system is sometimes wrong.

Most discussions surrounding the future of payments tend to focus on developed markets; however, much can be learned from developing markets such as Nigeria in understanding what really shapes global payment solutions.

With its specific challenges as well as opportunities, Nigeria has carved a niche as a laboratory of innovation around payments, and it shows how creativity and adaptability overcome barriers and drive progress.

Mobile money is the one outstanding feature in the Nigerian payment ecosystem, with mobile money services such as Paga and OPay revolutionizing the way money is sent, received, or stored by a largely non-banking populace.

They brought marketing to the users, allowing them to conduct transactions with nothing more than their mobile phone without undergoing the rigors of having to open a bank account traditionally.

If Nigeria, whose situation presents some of the greatest challenges in mobile money, succeeds in something as basic as bringing everyone into the payment ecosystem, it illustrates how payment solutions must, themselves, be low-cost, best-suited, and accessible to the unbanked.

Thus, it is a lesson worth taking by other regions toward confronting the same challenge and offering solutions to overcome it.

Collaboration is arguably what most solidly springs out from Nigeria. It is reputedly anchored on partnerships from fintech start-ups and banks, as well as telecom providers, and that is why regulators are adding their voice in the Nigerian payments ecosystem.

The merger between MTN—the country’s leading telecoms provider—and banks enabled this huge success, being that MTN Mobile Money is a service that exploits the broad reach of mobile networks and the inherent security that the banking infrastructure offers.

All these can be very much linked as part of the reasons why they are seen to give more value to the solutions they create together; thus, for the global markets too, it goes to show that pooling together between the traditional players and the fintech organizations will definitely help drive innovations in payment matters.

From the Nigerian experience, the Central Bank of Nigeria (CBN), as a regulator, has been very proactive in creating a regulatory environment.

These regulations indeed play a pivotal factor in shaping the payment landscape that promotes innovation while ensuring safety and stability. Initiatives such as the Payment Service Bank license and cashless policy have built a framework within which digital payments could grow.

At the same time, the CBN has instituted guidelines that consumer protection has played along with policies against fraud like the Bank Verification Number (BVN) system.

This requirement will highlight the need for regulators to increasingly work toward finding a balance between enabling financial innovation and safeguarding the financial system for the global markets.

There is also a general trend emerging among the rise of digital wallets and QR code payments among consumers in Nigeria.

The likes of Quickteller and PalmPay have simplified digital payment for consumers and merchants, especially in informal markets.

QR codes, in particular, have gained a lot of ground and acceptance because they offer an inexpensive way to pay for services.

They are also very easy to use and require minimal infrastructure. Global payment providers should design solutions that are intuitive, easy to use, and compatible with existing behaviors as the keys to driving adoption in traditionally cash-dominated markets are simplicity and accessibility.

Nigeria’s payment ecosystem teaches resilience and adaptability. The infrastructure challenges, like unreliable electricity and internet connectivity, have forced innovators to come up with solutions that function with very wrong environments.

It highlights that USSD (Unstructured Supplementary Service Data) codes have become the most popular payment methods due to their compatibility with basic mobile phones and lack of internet connectivity.

Such discoveries show how resourceful these Nigerian innovators have been and are a good lesson to share with world markets undergoing similar experiences.

Nigeria’s payments ecosystem has challenges, including fraud and cybersecurity, which are real concerns that would call for continuous investment in security measures and consumer education.

The user is confused about navigating unconsolidated systems with no single payment standard due to innovation.

All stakeholders (i.e., the regulators, financial institutions, and fintech companies) must work together to solve these challenges.

So, what can global markets learn from Nigeria’s payment system? First and foremost, accessibility and inclusivity must come first, designing solutions that meet the needs of traditionally underserved populations.

Encourage collaboration between traditional players and innovators to make progress. Create regulatory environments that encourage innovation while ensuring security and stability.

Manage simplicity and adaptability to push adoption and mitigate infrastructure challenges. Invest in security and education towards consumer trust protection.

By virtue of innovation and resilience before it, Nigeria’s payment ecosystem is a source to learn from.

It provides lessons to be internalized in crafting payment systems for global markets that are technologically advanced but, at the same time, inclusive, accessible, and impactful.

More than ever, with lessons from Nigeria, payment systems meant to work for everyone is charted out in pathways wherein financial inclusion becomes the priority in solving current challenges posed by a turning world towards digital. Nigeria is setting the standard for global payments in the future.

*Oluwaseun Adeoye is a Product Manager with 12+ years in finance, specializing in electronic payments and digital banking. He holds a Computer Science degree from Bowen University and is pursuing a Graduate Certificate in Cloud Data Management at Conestoga College. Skilled in API integration, business development, and project management, he has delivered customized payment solutions for Nigerian and global markets.

Outside work, he enjoys learning, music, and leveraging technology to simplify tasks.

The report exposes the wave of financial fraud involving corrupt bank employees and agents who register BVNs for underage individuals, allowing them to open enterprise accounts used for illicit transactions. 

Two significant cases mentioned in the report resulted in losses of over ₦1 billion, with stolen funds moved through multiple accounts to evade detection.

How the Fraud Was Carried Out

In one case, a compromised bank staff registered a BVN for a minor and linked it to an enterprise account. This fraudulent account later received ₦495.3 million, which was quickly withdrawn.

In a similar scheme, a banking agent registered a BVN for another underage individual and used it to open a business account under the guise of a bakery. This account was credited with ₦507 million, which was immediately transferred out before authorities could intervene.

NIBSS confirmed that one of the implicated bank staff members is under investigation, while the agent involved in the second case has been reported to law enforcement for possible prosecution.

Inside Job: The Role of Bank Officials

The report stresses how some financial institution employees played a direct role in facilitating these fraudulent activities. Regulators are currently engaging with the affected bank to assess internal complicity and enforce stricter verification measures to prevent further occurrences.

“BVN was registered for a minor I by compromised bank staff and an enterprise account was opened using the BVN. An estimated ₦495.3 million was later received into the account and drawn down.

“BVN was registered for a minor II by a compromised agent and an enterprise account of a bakery was opened with the BVN. An estimated ₦507 million was transferred into the account and moved out.

“Agent has been reported to LEA for arrest while engagement is ongoing with the bank on the role played by its staff in this fraud,” the report stated.

Surge in Fraud Despite Fewer Reported Cases

While the overall number of reported fraud incidents has dropped by 31% between 2020 and 2024, financial losses from fraudulent activities have skyrocketed by 350% within the same period. The total amount lost to fraud surged from ₦11.61 billion in 2020 to ₦52.26 billion in 2024.

Fraudsters are exploiting weaknesses in regulatory oversight, identity verification processes, and financial service intermediaries to carry out large-scale theft daily

Other Fraudulent Schemes Identified

The NIBSS report also flagged other emerging fraud trends beyond the illegal use of minors’ BVNs. One case involved fraudsters stealing the identities of senior citizens to open bank accounts, funnelling more than ₦400 million through these fraudulent accounts.

In another instance, fraudsters used falsified corporate documents to register an oil and gas company in July 2024. On the day the fraudulent account was opened, it received ₦335 million, which was swiftly transferred to unlicensed Bureau De Change (BDC) operators. Authorities were able to recover the funds following apt intervention by law enforcement.

Again, fraud proceeds are increasingly being laundered through cryptocurrency transactions disguised as gift card purchases, making it harder to track stolen funds.

To curb rising fraud cases, NIBSS has called for strict security protocols, including real-time biometric validation during BVN registration and the enforcement of an Enterprise Fraud Management System to detect and halt suspicious transactions.

The report also recommends permanently blacklisting fraudulent BVNs and ensuring that all newly opened financial accounts are profiled within 24 hours to enhance fraud detection efforts.