The Central Bank of Nigeria (CBN) on Wednesday disclosed the country’s payment system attracted about $500 million worth of investments between 2015 and 2020.
The apex bank Governor, Godwin Emefiele, gave this hint in his address on the theme, ‘Trends in Nigeria payments system: Regulating the Fintech Digital Playing Field’, at the ongoing CBN’s 31st Seminar for finance correspondents and business editors in Enugu.
According to him, the high level of confidence in the nation’s payment system during the six-year period attracted the investment in entities operated by Nigerian founders,” he said.
Represented at the event by the Deputy Governor, Corporate Services, Edward Adamu, the governor noted the payment system in the country had evolved over the years through technological advancements and regulatory policies by the apex bank thereby making it to become a more robust system.
Emefiele explained that the financial industry, like other sectors of the nation’s economy, was negatively impacted by the COVID-19 pandemic disruptions, thereby accelerating shift towards digital financial services.
While noting that the shift toward digital transactions is expected to attract more investments from fintech companies, the CBN Governor advocated the need for increased scrutiny by regulators to monitor developments and ensure the continuous safety and efficacy of the financial system
Emefiele expatiated: “It is therefore imperative that regulators must keep pace with these exponential developments and leverage new knowledge and technology tools such as Regtech and Suptech to enhance the efficiency and effectiveness of their mandate.
“From all indication, digital revolution will be a focus for financial institutions in the months ahead therefore making fintechs a major driver of the industry.
“As the global economy recovers from COVID-19, it is obvious that fintech will play a more important role towards resilient and sustainable recovery.
“As a country with one of the largest millennial population in the world- (an estimated 62 per cent of the Nigerian population below 25 years of age), fast smartphone growth driven by increasing affordability, increasing mobile penetration and fast transition to 5G technology, Nigeria remains primed to be an active playground for digital transformation and cannot afford to ignore the fintech challenge”, Emefiele added
On the efforts by the apex bank to cushion the negative effects of the pandemic on the Nigerian economy, the seasoned banker said that CBN implemented measures aimed at reducing the risk to financial stability, amongst other policy measures.
He listed some of the results of these initiatives as including a resilient payment system that had continued to meet the needs of households and businesses in the country.
Emefiele also spoke on bank’s efforts to facilitate development in the financial sector by leveraging latest technology, including its current moves to launch the eNaira project soon.
On why the apex bank decided to introduce the digital currency and its potential benefits to the economy, the governor clarified: “The CBN decided to introduce a central bank digital currency, the eNaira, which would help in attaining our goals of fostering greater inclusion using digital channels, supporting cross border payments for businesses and firms as well as providing a reliable channel for remittances inflows into the country.
“With the deployment of the eNaira, Nigerians in remote areas can conduct financial activities using their digital as well as features on phone devices.
“Partnering with our stakeholders in the financial industry, I believe that more Nigerians will be financially included”, Emefiele added.
