CBN, Banks, and Fintechs Unite to Launch PSPC Platform for Payment System Overhaul
The Central Bank of Nigeria (CBN), in a landmark collaboration with commercial banks and financial technology (fintech) companies, has officially inaugurated the Payments Service Providers Committee (PSPC). This unified industry platform is designed to tackle persistent structural challenges within Nigeria's rapidly expanding digital payments ecosystem. The launch event, held in Lagos, brought together regulators, deposit money banks, mobile money operators, and fintech stakeholders, signaling a new era of cooperation aimed at fostering innovation and reinforcing financial system stability.
Addressing the Growth of Digital Transactions
During the inauguration, Deputy Governor for Economic Policy, Muhammad Sani Abdullahi, emphasized that the initiative is a direct response to the explosive growth of digital transactions in Nigeria. He revealed that in 2024 alone, the country recorded more than 11.2 billion electronic transactions, with a total value exceeding ₦1.07 quadrillion. This milestone marks the first time digital payments have surpassed the quadrillion-naira threshold, underscoring the sector's critical role in economic expansion, financial inclusion, and trade facilitation. Abdullahi noted that this upward trajectory has continued into 2025 and early 2026, highlighting the urgent need for enhanced coordination and strategic oversight.
PSPC as a Central Coordination Body
Abdullahi explained that the PSPC will function as a central coordination body, enabling industry players to collectively address operational challenges while maintaining Nigeria's leadership position in digital payments across the African region. He stressed the importance of improved policy alignment, shared expertise, and joint problem-solving between regulators and operators. "The goal is to foster stronger cooperation, encourage innovation, and reinforce the stability of Nigeria's financial system," Abdullahi stated, adding that the committee will help streamline efforts to combat fraud and ensure system integrity.
Upcoming Three-Year Payments Vision
Looking ahead, Abdullahi disclosed that the CBN plans to unveil a comprehensive payments vision within the next month. "Shortly, in about a month from today, we'll be launching a new payment systems vision that outlines where we see the entire ecosystem going in the next three years. That vision has been co-created with financial technology players, mobile money operators, and payment service providers," he said. This strategy is expected to drive substantial and inclusive growth, enabling more Nigerians to access digital financial services, which could help reduce poverty levels, support small businesses, and boost overall economic activity.
Enhancing Security and Reducing Fraud
Beyond growth, the initiative prioritizes security enhancements to combat fraud, money laundering, and terrorism financing. Abdullahi noted that stronger safeguards will be implemented to ensure the integrity of the financial system. Deputy Governor for Financial System Stability, Philip Ikeazor, further highlighted that the new platform will improve communication between regulators and industry players, leading to quicker resolution of operational issues. He revealed that fraud incidents dropped by 50% between 2024 and 2025, attributing this success to automated anti-money laundering and fraud detection systems. The introduction of these systems is expected to further reduce risks across banks and payment service providers, bolstering consumer confidence and system reliability.
Implications for Nigeria's Financial Landscape
The launch of the PSPC represents a significant step towards addressing the gaps in Nigeria's payment infrastructure, which has been strained by rapid digital adoption. By uniting key stakeholders, the initiative aims to:
- Enhance policy coordination and regulatory oversight.
- Promote innovation and technological advancement in payments.
- Strengthen security measures to protect against financial crimes.
- Support financial inclusion and economic growth through accessible digital services.
As Nigeria continues to lead in digital payments across Africa, the success of the PSPC could serve as a model for other nations seeking to modernize their financial ecosystems while ensuring stability and security.
