The Central Bank of Nigeria (CBN) has announced its intention to review the licensing framework for payment services as part of a broader regulatory update for the sector. Governor Olayemi Cardoso disclosed this plan at the Chartered Institute of Bankers of Nigeria’s annual dinner in Lagos, where he emphasized the evolving role of technology in financial services and the need for an updated compliance framework to match these advancements.

Currently, the Nigerian payments landscape operates under several licensing categories, including Payment Service Provider, Payment Terminal Service Provider, Mobile Money Operator, Switching and Processing, and Payment Solution Service Provider licenses. In 2020, the CBN streamlined these categories to improve regulatory clarity, covering activities such as switching, mobile money operations, payment solutions, and the regulatory sandbox.

Cardoso emphasized the importance of fintech in reaching Nigeria’s projected GDP target of $1 trillion and increasing capital inflows, noting that sectors like fintech, IT, agriculture, and oil & gas are expected to attract significant investments. He explained, “As these sectors expand, so will opportunities for both current players and new entrants willing to invest in a growing economy.”