The operators, under the Association of Licensed Telecommunications Operators of Nigeria (ALTON), said much of the money currently funding network expansion and infrastructure development comes from domestic financing, reinvested earnings and other funding channels that are not fully captured by the National Bureau of Statistics’ capital importation framework.

The reaction follows the release of the NBS Capital Importation Report for the first quarter of 2026, which showed that foreign capital inflows into telecommunications dropped from $80.78 million a year earlier to $7.24 million.

According to the report, telecoms accounted for just 0.07% of the $10.37 billion that entered the Nigerian economy during the quarter.

ALTON said the figure presents only part of the investment picture.

“…this metric appears to capture only a portion of the total capital actively deployed within the sector.

“Our industry’s substantial Capital Expenditure (CAPEX) figures suggest that current investment derives from domestic capital sources, reinvested operational earnings – financial mechanisms that may not be fully reflected in conventional foreign capital importation metrics,” the association said.

The group noted that mobile network operators, tower companies and other telecom firms invested about N2.13 trillion in capital projects in 2025. It added that planned capital expenditure for 2026 currently stands at N1.86 trillion.

According to ALTON, the funds are being directed towards network expansion, infrastructure upgrades, technology improvements and measures aimed at strengthening operational resilience.

The association argued that the wide gap between reported foreign inflows and actual spending within the industry points to shortcomings in the current method used to track investments.

To address this, it called for collaboration between the Nigerian Communications Commission (NCC), the National Bureau of Statistics and the Central Bank of Nigeria to develop a comprehensive framework for measuring investment in the telecom sector.

“To ensure Nigeria’s telecommunications sector investment profile is accurately represented, ALTON respectfully proposes a collaborative engagement among the Nigerian Communications Commission, the National Bureau of Statistics, and the Central Bank of Nigeria to develop a more inclusive and comprehensive investment-tracking framework,” the association stated.

Despite pressure from inflation, high costs of operations and foreign exchange challenges, ALTON said operators have always invested heavily to maintain service quality and expand connectivity across the country.

The association also credited the Federal Government’s approval of a 50% tariff increase in 2025 with improving operators’ ability to reinvest in their networks.

“The timely intervention enabled operators to transition from financial distress to a sustainable, growth-focused model characterised by significant capital reinvestment,” it said.

While telecom operators questioned the reported investment figure, the NBS data showed that foreign investors significantly increased their exposure to Nigeria during the quarter.

Total capital importation rose to $10.37 billion in Q1 2026, representing an 83.8% increase from $5.64 billion recorded in the same period last year. Compared with the previous quarter, inflows climbed by nearly 61%.

However, most of the money flowed into short-term financial assets rather than long-term productive investments.

Portfolio investments accounted for $9.86 billion, or about 95% of total inflows, while foreign direct investment stood at just $135 million. Other investments, including loans and trade credits, contributed $374.5 million.

The banking sector attracted the largest share of foreign capital, receiving $7.55 billion, followed by the financing sector with $2.43 billion. Manufacturing drew $152.3 million, while telecommunications received $7.24 million.

This follows a decline in inflation, which has fallen for 11 consecutive months to 15.1% in January, according to CBN Governor Yemi Cardoso.

The MPR sets the benchmark for borrowing costs in the economy. Lowering it could reduce funding expenses for digital lenders, who rely on borrowed capital rather than customer deposits.

“Digital lenders and members of the Money Lenders Association usually borrow at interest rates linked to MPR, so any change in such MPR will have a significant impact on our cost of lending to customers,” Gbemi Adelekan, president of the Money Lenders Association, said in a report.

Unlike commercial banks, which fund loans largely with customer deposits, most digital lenders depend on wholesale funding, private capital, or institutional borrowing.

This makes them highly sensitive to changes in benchmark rates. High MPR levels over the past year have forced many lenders to either raise loan rates or absorb thinner margins.

Currently, commercial banks charge annual interest rates exceeding 30% in some cases, while digital loan apps charge between 5% and 15% monthly.

Experts caution that borrowers should not expect immediate relief.

“Everyone benchmarks around MPR and their cost of borrowing,” said Babatunde Akin-Moses, co-founder of digital lending app Sycamore. “Rates should come down as the cost of funds becomes cheaper, but it may not happen immediately since some loans are already in effect, and may not have agreed variable rates with customers.”

Adeshina Adewumi, CEO of Trade Lenda, a digital bank for small businesses, also anticipates only modest changes. “I do not envisage any significant impact,” he said.

“However, a lower MPR means lower cost of funds to digital lenders, and we can afford to relax our numbers slightly.” Adelekan expects loan app interest rates to stay largely within the current range for now.

The digital lending sector in Nigeria has grown even as households seek short-term credit to manage living costs and limited access to traditional bank loans.

As of February 2026, the Federal Competition and Consumer Protection Commission had authorised 469 digital lenders. Consumer credit reached ₦3.11 trillion ($2.31 billion) in Q3 2025, with personal loans accounting for more than two-thirds of activity.

High interest rates have prompted lenders to move away from small nano loans, usually under ₦10,000, toward larger loans for customers with verifiable income.

“High MPR rates led to a tightening of credit by our members,” Adelekan said. “Lately, most of our digital lenders are shifting away from high-risk, small-ticket nano loans (under ₦10,000) toward quality and customers with verifiable income to reduce our non-performing loans.”

The sector is now prioritising portfolio quality over rapid user growth, showing a prudent recalibration as borrowing conditions gradually respond to monetary policy easing.

Themed “Unlocking Africa’s Finance Story,” the Africa Credit Expo 2025, which took place at the Landmark Event Centre, Lagos, was organised by CreditRegistry with Afreximbank as founding sponsor. 

The one-day forum drew government officials, international development banks, fintech founders, credit bureaus and SMEs from across the continent. It combined policy announcements, new partnerships and practical showcases aimed at expanding credit access while protecting consumers.

Three clear priorities

Reiterating that practicality has become indispensable in the finance space, speakers emphasised a short list of priorities that should guide immediate action. These include:

• Build verifiable financial identity and integrate alternative data so lenders can underwrite millions without collateral. 
• Pair access with education; financial literacy must scale if credit is to be used responsibly. 
• Make cross-border infrastructure real: interoperable IDs, payment rails and trade platforms that recognise credit records across countries. 

“We want to empower people to own the pond, because that way they’ll feed their generations,” Dr Jameelah Sharrieff-Ayedun, MD/CEO, CreditRegistry, said as she laid out ACE’s consumer education and ‘Black Friday on Credit’ initiatives aimed at rewarding disciplined borrowers.

Mastercard’s West Africa Chief, Dr Folashade Femi Lawal, spelt out the scale Mastercard is targeting and the firm’s partnership role: “We empower economies. We power businesses. We empower the people to the last mile, and we build sustainable economy where every player in the value chain, where they prosper.” 

Representing the Central Bank of Nigeria, Fidelis Odia urged collaboration and stressed the regulator’s priorities: “Access to credit is not merely a financial transaction, it is a catalyst that empowers entrepreneurs fortified small and medium enterprises, first in essential job creation, accessory for the long term viability and resilience of our economy.”

Tunde Lemo of the CBN struck a note on self-reliance: “We shouldn’t look in the west or in the northern hemisphere for this to happen, because capital and all the opportunities are here in Africa,”  he said, highlighting that the continent’s capital and demand exist if systems are fixed.

Afreximbank’s MANSA initiative, represented by Mrs Maureen Mba, made the case that trade finance and digital identity are two halves of the same story: build trade rails and you create markets that justify credit at scale. “Africa’s greatest contact resource is not its minerals, it is the entrepreneurial potential.”

Announcements and partnerships

CreditRegistry leveraged ACE 2025 to convert several policy conversations into formal commitments. The event included the signing of two memoranda of understanding: one with Afreximbank’s MANSA Digital Initiative and another with the University of Lagos, agreements intended to drive SME verification, export readiness and consumer education at scale.

Secretary to the State Government, Barr. ‘Bimbola Salu-Hundeyin representing Lagos state governor Babajide Sanwo-Olu, revealed directives to support microfinance institutions and local credit initiatives that can be scaled nationally, the kind of sub-national experimentation speakers said will matter.

Keynote takeaways from investors and practitioners

Kyari Abba Bukar, co-founder of Trans Sahara Investment Corporation, and other keynote speakers explained that Africa’s entrepreneurial energy is abundant but credit systems lack the trust signals lenders need.

Their prescription focused on three levers, data, guarantees and product design, to crowd private capital into SMEs and women-led businesses.

They emphasised that innovation is not only technological. It must include new ways of assessing risk (open banking, alternative data), credit guarantee instruments to absorb first losses and skills training so borrowers can use finance productively.

Highlights from Panel session

At Africa Credit Expo 2025, the panel, moderated by Ogbo Awoke Ogbo, focused on smart credit reporting and the practical use of credit scores (CreditRegistry’s “SmartScore”) by lenders and fintechs. 

Key practical points included:

• CreditRegistry’s SmartScore range and what the bands mean for access and pricing (100–999 scale; higher bands enable negotiation of interest rates). 
• The power and limits of alternative data (telco records, digital footprints) used by digital lenders to onboard customers without prior formal credit history. 
• Lenders must combine scores with affordability analysis, a high score is not a sole green light; product design must reflect capacity to repay. 
• Need for consumer education so people understand what affects their score (loan enquiries, repayment behaviour) and how to improve it. 
• Cybersecurity and data integrity were flagged as prerequisites: more data without protection is a risk, not an asset. 

Africa Credit Expo 2025 showed growth in the sector, with public officials, development banks and private players switching from talk to deliverables; MoUs, state directives, product pilots. 

It also outlined the three imminent needs:

1. Operational interoperability: IDs, payments and credit data must travel across borders and systems. 
2. Demand-side capacity: push financial literacy and SME support so loans create sustainable businesses, not short-term liabilities. 
3. A visible pipeline of bankable projects guarantees that patient capital can be deployed quickly. 

If those steps are taken, the potential results repeated across the day, to turn Africa’s entrepreneurial energy into measurable growth, moves from aspiration to plan. “The future of African credit is not a prediction; it is a prototype we must build.”

But at the Nigeria Fintech Week (NFW) 2025, the country’s most influential fintech gathering, speakers made it known that beyond the data, trust, collaboration, and innovation will define the nation’s digital future.

For the first time in its history, the week-long event is being held simultaneously in Lagos, Enugu, and Port Harcourt, bolstering inclusion as well as national reach, as is aligned with the theme “The Fintech Ecosystem Symphony: Orchestrating Nigeria’s Digital Future.”

This year’s edition is held at the Landmark Event Centre, Victoria Island, Lagos, bringing regulators, innovators, investors, and policymakers under one roof to discuss the fintech sector’s scale and sustainability.

From Association to Movement

Opening the day’s proceedings, Dr Stanley Jacob, president of FintechNGR, described the association’s evolution from a small group of pioneers to a national force building solid grounds for finance.

“When Fintech Nigeria was set up, it wasn’t to sit back and watch,” he said. “It was to drive digital transformation for our financial landscape. We wanted to lead, and today, I can confidently say we are orchestrating that transformation.”

Dr Jacob noted that through its PIE Agenda — Participation, Innovation, and Expansion, FintechNGR has grown into a hub of activity with over 600 institutional members and 62 active volunteers driving impact.

“We are no longer just an association. We are now a movement,” he said.

He explained that the association’s five Communities of Practice — covering innovation, cybersecurity, inclusion, policy, and industry advocacy — now anchor its influence in both local and international fintech conversations. “We have created an ecosystem that doesn’t just respond to change; we drive it.”

Harmony Through Collaboration

Picking up that thread, Dr Jameelah Sharrieff-Ayedun, vice president of FintechNGR and chairperson of Nigeria Fintech Week 2025, noted that fintech’s progress depends on collaboration.

“Our ecosystem requires every instrument — regulators, innovators, investors, and consumers — to play their part,” she said. “This is more than a theme; it is a statement of intent.”

She noted that FintechNGR’s growing visibility in policy discussions is evidence of maturity. “We’re not just a ceremonial presence with regulators. We’re now recognised for our expertise and the value we bring to Nigeria’s financial and technology ecosystem,” she said.

Dr Sharrieff-Ayedun also stressed FintechNGR’s governance reforms, from data protection frameworks to transparency in operations, as part of building credibility. “Do not leave this week without making the deal you came to make. Like a symphony, we must all play in harmony.”

Africa Can Deliver to the World

Dr Segun Aina, chairman of the FintechNGR Board of Trustees and president of the Africa Fintech Network (AFN), lifted the discussion to the continental aspect, affirming that Nigeria’s fintech success is part of a bigger African story.

“Nigeria has four of the nine leading fintechs in Africa, and many more are on the way,” he said. “We are not just participating in the global fintech story, we are shaping it.”

He highlighted key AFN initiatives, including the Africa Fintech Hub, supported by the African Development Bank, and the Fintech Passporting Project, which aims to harmonise regulatory requirements across African countries.

“With standardised frameworks, it will be seamless for fintechs to operate from one African country to another,” he said. “Africa can deliver to the world, not as followers, but as creators.”

Trust as the New Currency

Representing CBN Governor Olayemi Cardoso, Dr Rakiya Opemi Yusuf, director of the Payments System Supervision Department, reiterated the Central Bank’s focus on balanced innovation.

“Like an orchestra, our fintech ecosystem requires harmony between innovation and regulation, inclusion and security,” she said. “Only through such balance can we advance trust and inclusion.”

She cited the ₦384 trillion figure as evidence of the deepening confidence in Nigeria’s financial technology systems. “The Central Bank embraces responsible innovation,” she said. “Compliance and trust are not barriers; they are the foundation of sustainability. When products are built on trust, they endure, and they attract investors.”

In alignment with this, Callistus Obetta, group executive, Technology & Services at First Bank of Nigeria, emphasised that trust is “the bedrock of financial services.”

“In today’s digital world, trust is our real currency,” he said. “AI should not replace human relationships, it should enhance them, allowing people to serve customers with empathy and purpose.”

Policy and People at the Core

Representing Senator Adetokunbo Abiru, Blessing Adeolu-Adediran of CCHub delivered a goodwill message that tied policy, innovation, and human capital together.

“The future of our nation will be shaped by the digital innovations of today,” she said. “This week reminds us that the Nigeria we envision tomorrow will be built by what we choose to do — or fail to do — now.”

She spotlighted the Sail Innovation Lab, a project that has trained over 9,000 young Nigerians in technology skills, as a practical model for inclusive growth.

One Vision, One Symphony

Nigeria’s fintech expansion has reached a point of harmony, between ambition and regulation, innovation and inclusion, policy and people.

Dr Stanley Jacob’s closing words at the Nigeria Fintech Week 2025 captured the spirit of the day: “Our mission continues, our vision remains clear, and our commitment is unwavering. Together, we will orchestrate Nigeria’s digital future.”

Under the theme “From Unification to Diversification: Shaping Nigeria’s Gaming Future,” one debate bubbled to the surface: how can individual states regulate an industry that exists everywhere and nowhere at once, especially when it’s online and offshore?

On paper, state gaming commissions are empowered to oversee all gaming activities within their borders.

In practice, however, that jurisdiction is about as useful as a fishing net with very large holes when it comes to digital platforms.

You can monitor a physical betting shop in Enugu or a lottery kiosk in Kano, but how do you regulate an online sportsbook operating out of Malta, streaming odds to Nigerian smartphones, and accepting payments via global fintech platforms?

The Challenge of Invisible Borders

The core problem is that gaming regulation in Nigeria has been designed with geography in mind, but the internet doesn’t do geography.

An operator based in Gibraltar can legally reach Nigerian customers without opening a single local office, renting shop space, or registering with a state commission. That means states lose revenue, lose control over responsible gaming measures, and lose the ability to enforce consumer protection standards.

Add to that the proliferation of crypto-based gaming platforms that bypass traditional banking channels, and you have a regulatory nightmare, one where the operators are virtually invisible, the transactions are borderless, and the consumers are often unaware they are playing outside any enforceable legal framework.

Enter the NCC: The Gatekeeper That Isn’t Guarding

If there’s a body with the reach to at least partially address this challenge, it’s the Nigerian Communications Commission (NCC).

This is the agency that licenses internet service providers, monitors telecommunications infrastructure, and can block access to non-compliant platforms.

In theory, the NCC could work closely with all state gaming regulators to identify illegal or unlicensed platforms targeting Nigerians and block them at the ISP level, much like some countries block pirate movie sites or fraudulent banking portals.

This would make it significantly harder for rogue operators to access the Nigerian market without compliance.

In reality, however, NCC’s current involvement in gaming regulation is minimal, if not entirely absent.

This isn’t because they don’t care; it’s because there’s no strong legal or policy framework mandating such collaboration. The NCC is in the telecoms business; gaming is someone else’s problem.

The Case for Multi-Layered Regulation

If Nigeria is serious about addressing this, three things need to happen:

1. Inter-Agency Agreements: The NCC, Central Bank of Nigeria (CBN), and each state regulator should enter into formal protocols to share intelligence and enforce joint actions.

If an online gaming operator is not licensed locally, they shouldn’t be able to advertise, process payments, or operate unmonitored in Nigeria.

2. Technology-Based Monitoring: States need to invest in or subscribe to global gaming monitoring software. These platforms can track online betting traffic, identify unlicensed domains targeting Nigerian IP addresses, and flag suspicious activity.

3. Consumer Education: Nigerians are increasingly tech-savvy, but not always regulation-savvy. Public awareness campaigns should educate consumers on the risks of using offshore gaming platforms, including the lack of payout guarantees and recourse mechanisms.

The Reality Check

Even with these measures, no one should pretend that perfect enforcement is possible. Offshore operators will always be a step ahead in technology, and the lure of tax-free profits will keep them coming. But reducing the size of the loopholes is still worth the effort.

The truth is, regulation in the digital era is not about building higher fences, it’s about building smarter networks. State regulators, left alone, will always be overmatched in this fight.

But in a coordinated ecosystem, where NCC acts as the gatekeeper, CBN controls the payment pipelines, and states enforce licensing, the odds of success improve dramatically.

Because if there’s one thing the gaming industry teaches us, it’s that you can’t win every bet… but you can still play to increase your chances.

========

*‘Gaming Grid’ is your weekly pulse on Nigeria’s gaming industry, its trends, and its trailblazers. Stay plugged in on TechEconomy.ng as we unpack the opportunities beyond the odds.

As a result, 80% of new small businesses fail in 3 years. Most of the failures are due to numerous challenges facing the sector which are the parameters that determine the sustainability of small businesses.

Small and medium scale (SMEs) businesses are companies with a workforce of fewer than 300 individuals.

Small business enterprises are a sector of the economy that needs the attention of the  Nigerian government and other developing nations due to the role it plays in job creation and economic growth in the nation’s economy.

The Nigerian Economy like other African countries has been facing a fight against unemployment since Independence.

The Nigerian government through its economy regulatory agencies have recognized the importance of small business in the provision of employment to the citizen.

Because of the importance of small businesses in the Nigerian economy local, state, and federal government recognized the need of stimulating small businesses to provide employment, reduce poverty rate, and improve economic growth.

However, while small business is being acknowledged for its development contribution, it still faces many obstacles that limit their long-term survival and development.

Some of the common challenges facing small business owners in Nigeria and recommendations are

1. Access to finance:

Limited access to capital:

Many small business struggle to secure loans or venture capital due to high interest rates, lack of collateral, and stringent landing requirements.

High interest rate:

Nigerian banks often charge high interest rates on loan, making borrowing expensive and reducing profitability for small businesses.

Recommendation:

Financial literacy programs:

Educating SME owners on financial management, accounting practices, and alternative funding options can help them navigate the financial landscape effectively.

2. Infrastructure Development:

Inadequate infrastructure, including unstable power supply, poor road networks, and limited technology access, hampers the productivity and efficiency of SMEs, leading to increased costs and operational challenges.

Recommendation:

Government investment:

Prioritizing infrastructure investments to improve power generations, upgrade transportation networks, and expand reliable internet connectivity is essential.

3. Inadequate skills and capacity:

The unavailability of skilled labour, including technical expertise, management capabilities, and entrepreneurial skills, poses a significant challenge for SMEs in Nigeria. The lack of a skilled workforce can hamper growth and innovation.

Recommendation:

Vocational training and skill development programs:

Collaborating with government and private sectors entities to provide training programs that equip individuals with the skills required by SMEs is crucial.

4. Regulatory and administrative burdens:

Complex regulatory frameworks, excessive bureaucracy, and corruption create barriers for SMEs in Nigeria. Cumbersome business registration processes, obtaining permits, and complying with tax regulations to the administrative burden faced by SMEs. Navigating the regulatory landscape can be challenging and time consuming for small business owners.

Recommendation:

Digitalization of government policies:

Implementing e-government initiatives and online platforms for business registration, tax filing, and other administrative processes can enhance efficiency, and transparency, and reduce corruption risks.

5. Other challenges:

Time management:

Balancing the demands of running a business with personal life can be difficult.

Market fluctuation:

Economic downturns and changing consumer preferences can significantly impact small businesses.          

Conclusions

Small business enterprises are seen as an important sector of a nation`s economy which should be adequately given attention. Small business owners face a complex web of challenges, from securing funding and managing cash flow to building strong teams and adapting to market shifts. While these hurdles are significant, they also present opportunities for growth and innovation. Through strategic planning, effective management, and a commitment to continuous learning, small businesses can not only survive but thrive in today’s competitive landscape.

The writer:

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 decision, which is the first hold in three years, was announced by the Governor of the CBN, Yemi Cardoso, following the latest Monetary Policy Committee (MPC) meeting in Abuja on Thursday.

The MPC resolved to retain the following key financial parameters:

• Monetary Policy Rate (MPR): 27.5%

• Asymmetric Corridor: +500/-100 basis points around the MPR

• Cash Reserve Ratio (CRR): 50% for Deposit Money Banks, 16% for Merchant Banks

• Liquidity Ratio: 30%

Cardoso explained that the decision to hold rates was influenced by economic conditions, particularly the recently adjusted inflation figures.

The National Bureau of Statistics (NBS) reported that Nigeria’s inflation rate had declined to 24.48% from the previously recorded 34.8% following a rebasing of the Consumer Price Index (CPI).

At the press briefing, Cardoso noted the committee’s cautious approach in assessing the impact of previous policy adjustments. “Members, however, were not oblivious to the risk of persisting inflationary pressures driven largely by food prices,” he stated.

The committee acknowledged the government’s efforts to stabilise the economy, noting improvements in the foreign exchange market and a gradual appreciation of the naira.

Again, security interventions in food-producing regions were referred to as essential for easing food price inflation.

The MPC stressed the need for continued coordination between monetary and fiscal policies to achieve sustainable economic growth and price stability. It also urged the CBN to maintain vigilance over the banking sector amid ongoing global and domestic economic uncertainties.

“The committee highlighted the benefits of the improvements in the external sector to exchange rate stability, including the convergence of rates between the Nigerian foreign exchange market and the bureau de change,” Cardoso noted.

As part of its economic strategy, the CBN reaffirmed its focus on ensuring liquidity in the financial system while implementing measures to strengthen market confidence.

The next MPC meeting is expected to review the effectiveness of current policies and assess potential adjustments based on economic indicators.

Starting March 1, 2025, Nigerians won’t need to worry about saving money, because their banks will be doing the saving for them—one ATM withdrawal at a time—just that you can never access the funds. Sounds like a well-planned heist, right? Except this one is perfectly legal.

Nigerians will now be paying through their noses just to access their own funds, thanks to the Central Bank of Nigeria’s (CBN) latest policy blessing the banks with a multi-trillion-naira windfall in ATM charges. 

Let’s break it down.

The Billion-Naira Cash Grab Disguised as Policy

Under the new policy:

• On-Us Transactions: Withdrawals at your bank’s ATM? Free. (Phew.)
• Not-On-Us Transactions: Withdraw at another bank’s ATM? That’ll be ₦100 per ₦20,000.
• Off-Site ATMs: Withdraw from an ATM that isn’t inside a bank? That’s ₦100 per ₦20,000 withdrawal, plus a surcharge of up to ₦500.
• International Withdrawals: Fees are “based on cost recovery,” meaning whatever the international acquirer charges will be passed directly to you.

At first glance, ₦100 per withdrawal doesn’t seem like much—until you do the math.

How Banks Will Make ₦2.2 Trillion from Your Money

…and that’s just based on one withdrawal per active account a month

With 311.6 million active bank accounts in Nigeria, even a single monthly withdrawal per account could generate huge profits:

• Domestic Withdrawals: ₦100 x 311.6 million = ₦31.16 billion per month.
• Off-Site ATM Withdrawals: ₦600 per withdrawal x 311.6 million = ₦186.96 billion per month.

That’s over ₦2.2 trillion per year—not from lending, not from business investments, but simply from letting people access their own money.

And all this in an economy where inflation is running at over 30%, unemployment is skyrocketing, and the new ₦70,000 minimum wage barely covers rent and food.

If a worker withdraws ₦80,000 in a month from off-site ATMs, they could pay up to ₦2,000 in fees—nearly 3% of their salary. Meanwhile, banks continue to report record profits.

From Banking to Legalised Extortion

Globally, banks earn primarily from lending. But in Nigeria, financial institutions have found a more innovative model: charging customers for every financial move they make.

• In the first quarter of 2024, top-tier banks raked in over ₦125 billion from electronic banking charges.
• With just 16,714 ATMs for over 200 million Nigerians, long queues and machine downtime are already the norm. This policy will push more people towards expensive PoS withdrawals, where agents also charge their own fees.
• By contrast, in countries like Kenya, digital banking is encouraged through zero ATM withdrawal fees for many account types. Even in South Africa, withdrawal charges are significantly lower. So why are Nigerian banks making their customers pay so much for basic services?

The CBN claims these charges will prevent customers from breaking withdrawals into smaller amounts. But let’s be honest: This is just another revenue stream for banks, cleverly wrapped in the language of “financial policy.”

The Central Bank of Nigeria, rather than acting as a regulator in the interest of financial inclusion, seems to be tilting towards policies that favour banks at the expense of customers. 

The question is: why is there no cap on ATM charges? Why isn’t there a push for alternative, low-cost cash withdrawal solutions?

I mean! There is no upper limit or maximum limit on the charges for ATM transactions. The fees can vary and may increase based on different factors, such as the amount of money withdrawn or the location of the ATM. Essentially, there is no fixed maximum charge that customers can be guaranteed not to exceed. 

This means you might encounter different fees depending on which bank’s ATM you use or whether the ATM is located on-site (at a bank branch) or off-site (at a different location, like a shopping mall). 

Moving Towards Digital, or Just Financial Exclusion?

Supporters say that higher ATM fees will encourage electronic transactions—but here’s the problem:

• Digital Payments Are Not Universal: Many Nigerians, especially in rural areas, still rely on cash for daily transactions.
• Mobile Network Issues: Failed transfers and delayed alerts are common, making cash a safer option for many.
• Unbanked Population: With 26% of Nigerians still unbanked, these charges could further discourage financial inclusion.

So, what’s the alternative? Fintechs like Opay, PalmPay, and Kuda may benefit as Nigerians search for less exploitative banking options. But until digital banking becomes truly reliable, these ATM charges are nothing short of a tax on poverty.

So, Who Will Save Nigerians from Their Own Banks?

As it stands, the biggest threat to your finances isn’t inflation, unemployment, or even government policy—it’s your own bank.

At what point does banking stop being a service and start looking like state-approved extortion? Nigerians are being charged simply for existing within the banking system.

If the CBN does not cap these fees or introduce customer-friendly alternatives, we may soon see a mass exodus from traditional banking. The very institutions meant to safeguard our money seem more interested in finding new ways to take it—so as to “ease costs of operations.”

Until then, be prepared: In Nigeria, it now costs money to withdraw your own money.

This ecosystem is supported by the innovative efforts of both financial institutions and fintechs, which have expanded access to financial services, driven adoption, and empowered millions of Nigerians. Innovations such as the Central Bank of Nigeria’s (CBN) eNaira, Africa’s first central bank digital currency, highlight how regulators are fostering groundbreaking solutions to enhance financial inclusion and modernize the economy.

One consistent theme in Nigeria’s financial services sector has been its unwavering focus on innovation and collaboration. From the early 2000s, when pioneers like Interswitch and NIBSS laid the groundwork, to the rise of fintech giants such as Paystack, Flutterwave, and PiggyVest in the 2010s, players in the ecosystem have consistently sought new ways to deliver value.

Today, blockchain is at the forefront of this evolution, with institutions adopting these technologies to improve efficiency and customer experiences. Zone, a trailblazer in regulated blockchain technology, is at the center of this shift, uniting banks and fintechs under a decentralized payment network.

In this exclusive interview, Sunday Agbi, vice president of Operations at Zone Payment Network, delves into how Zone is reshaping Nigeria’s payment landscape with its innovative infrastructure and partnerships.

TE: Zone has been described as a game-changer in the payments space. Can you give us an overview of what sets Zone’s infrastructure apart from existing payment systems in Africa?

Sunday Agbi: Zone’s infrastructure is Africa’s first regulated blockchain network for payments, and that alone marks a significant departure from conventional systems. Unlike traditional centralized systems, our decentralized network allows financial institutions to connect directly, eliminating the gaps experienced with centralized payment networks. This means faster transaction times, reduced costs, and increased security.

What truly sets us apart is how we’ve seamlessly integrated innovation with regulatory compliance. Zone was designed to address the unique challenges of Africa’s payment ecosystem while adhering to the highest standards of governance. By enabling direct, real-time interactions between financial institutions, our network ensures full transparency, making payments not only more reliable and secure but also more resilient.

This approach has earned the trust of leading financial institutions and regulators alike. By embedding compliance into the core of our infrastructure, Zone offers an interoperable system that empowers banks and fintechs to innovate without compromising security or regulatory standards.

TE: Collaboration with commercial banks and fintechs seems central to your strategy. How does Zone enable such partnerships, and what value do they bring?

Sunday Agbi: Collaboration is central to our mission because the future of payments depends on the synergy between traditional financial institutions and innovative fintechs. B

anks bring scale, trust, and deep customer relationships, while fintechs introduce agility, creativity, and new ways to engage users. Zone bridges these worlds, creating a unified infrastructure where both can thrive.

Our decentralized payment network enables seamless, real-time interactions between financial institutions on our network (both banks and fintechs alike).

For example, through our ZonePOS payment gateway,  financial institutions using ZonePOS can process transactions directly with the other, bypassing traditional intermediaries.

This not only reduces operational costs but also delivers a faster, more seamless experience for end-users.

Beyond technology, our partnerships are built on trust. By aligning with the regulatory frameworks of institutions like the Central Bank of Nigeria (CBN), we create an environment where both banks and fintechs can confidently innovate. This collaboration ultimately benefits merchants and consumers, strengthening Nigeria’s payment ecosystem.

TE: Zone operates in a highly regulated industry. How do you navigate compliance while staying innovative?

Sunday Agbi: Navigating regulatory compliance is non-negotiable in our space, and Zone prioritizes this at every level.

Our regulated blockchain infrastructure is not only innovative but also fully aligned with the requirements set by regulators like the Central Bank of Nigeria.

We actively engage with regulators to ensure our solutions meet and even exceed compliance standards. This involves building transparency into our system—such as ensuring full traceability of transactions—and using technology to enhance anti-money laundering (AML) and fraud prevention measures.

Ultimately, our commitment to compliance ensures that the ecosystem we’re building is both sustainable and trusted by all stakeholders.

TE: How is Zone preparing for the future of payments in Africa, given the rapid evolution of technology and customer expectations?

Sunday Agbi: The future of payments in Africa lies in scalability, accessibility, and trust. At Zone, we’re focused on expanding the capacity of our decentralized network to accommodate increasing transaction volumes while reducing latency to near-zero levels.

Furthermore, we continuously invest in our R&D to anticipate customer needs, ensuring our infrastructure is future-proof.

TE: Looking ahead, what does success look like for Zone in the next five years?

Sunday Agbi: Success for Zone is rooted in creating a payment ecosystem that transcends borders while continuing to redefine what’s possible within regulated blockchain technology.

Over the next five years, we aim to expand our network to connect financial institutions and fintechs not only across Africa but also on a global scale. By enabling seamless local and cross-border payments, Zone will become an essential bridge for financial services between emerging and developed markets.

We also envision Zone as the definitive example of what regulated blockchain can achieve—a concept championed by our CEO & Co-founder Obi Emetarom.

By demonstrating how decentralization and regulation can work in harmony, we aspire to set a global standard for innovation in payments.

In addition, we’re committed to evolving our network’s capabilities to support a broader range of use cases.

From powering regulated DeFi protocols to providing a platform for advanced financial products, Zone will continue to push the boundaries of what blockchain can do in a compliant, secure, and scalable manner.

Ultimately, success means building a financial infrastructure that empowers institutions, businesses, and individuals—enabling payments that are faster, more reliable, and inclusive, and ensuring that Africa remains a leader in the global financial innovation landscape.