Nigeria’s Ambitious Journey To 95% Financial Inclusion

This article by MARK ITSIBOR examines Nigeria’s newly launched payment system, a vision that seeks to direct how Nigerians will transact, trade, save, invest, and participate in an increasingly digital economy

Money moves economies. Yet in Nigeria, one of Africa’s largest economies, millions of people still operate largely outside the formal financial system. They save informally, transact mainly in cash, borrow from family and friends, and remain invisible to institutions that could help them build wealth.

For years, policymakers have celebrated the rise of digital banking, fintech innovation and electronic payments. Nigeria now processes trillions of naira in digital transactions monthly and boasts one of Africa’s most vibrant financial technology ecosystems.

Yet beneath the impressive figures lies a more stubborn reality. More than one-third of adults remain financially excluded, millions of accounts lie dormant, and trust in digital financial services remains fragile.

This contradiction sits at the heart of the Central Bank of Nigeria’s newly launched Payments System Vision 2028 (PSV 2028), an ambitious roadmap designed to raise financial inclusion from 64 per cent today to 95 per cent within four years.

If achieved, the target would bring an estimated 50 million additional Nigerians into the formal financial system. It would extend financial services to market women in rural communities, smallholder farmers, artisans, students, transport operators and micro-enterprises that currently operate at the margins of the formal economy.

From the cattle sellers in Jere market town in Kagarko Local Government Area in Southern Kaduna State to Kwata market in Niger State, Abatoir in Dei-Dei area of Abuja to Abatoir in the Agege area of Lagos State and Wudil Market in Wudil Local Government Area of Kano State, financial transactions are mostly done in cash. On some places, especially Jere and Wudil markets, 98.6 per cent of the sellers do not accept electronic transfers. Cash is the in thing.

So, for the Central Bank, the vision tagged PSV 28 is about much more than opening bank accounts. “Today, we unveil more than a payments strategy,” CBN Governor Olayemi Cardoso declared at the launch in Abuja. “We unveil a vision for how Nigerians will transact, trade, save, invest and participate in an increasingly digital economy.”

His choice of words reflected a broader shift in economic thinking. Around the world, payment systems are no longer viewed simply as financial infrastructure. They have become instruments of economic development, capable of reducing poverty, expanding opportunities and accelerating growth.

That explains why Cardoso repeatedly described PSV 2028 as an economic transformation programme rather than merely a payments initiative. “One of the fastest ways to take a large number of people out of poverty is through an efficient payment system,” he argued.

The logic is straightforward. When individuals and businesses can send and receive money easily, securely and affordably, commerce becomes more efficient. Access to savings improves. Credit becomes easier to obtain. Informal economic activities gradually migrate into the formal sector, expanding opportunities for investment and growth.

Countries such as India, Kenya and Brazil have demonstrated how modern payment systems can transform economic participation. Nigeria hopes to follow a similar path, but the country’s circumstances present unique challenges.

The outgoing Payments System Vision 2025 made considerable progress in expanding access to financial services. Agent banking networks grew from about 50,000 locations to more than two million nationwide. Mobile banking became commonplace. Fintech firms emerged as major drivers of innovation.

Yet the progress exposed deeper weaknesses.

Financial inclusion improved, but usage remained uneven. Millions opened accounts but rarely used them. Rural communities continued to face barriers to access. Women remained disproportionately excluded from the financial system. Consumer complaints persisted, while fraud losses across the ecosystem climbed to an estimated N52 billion annually.

Perhaps most concerning is the issue of financial literacy.

Only 33 per cent of Nigerian adults can correctly answer basic financial knowledge questions, according to data cited during the launch. Rural women, young people and low-income households remain particularly vulnerable to financial misinformation, digital fraud and poor financial decision-making.

In many ways, Nigeria’s challenge has evolved.

The problem is no longer simply getting people into the financial system. It is convincing them that the system is reliable, useful and trustworthy enough to remain there.

That reality explains why trust has emerged as the central pillar of the new roadmap.

Cardoso acknowledged that a payment system is only as strong as the confidence people place in it. Without trust, digital channels remain underutilised regardless of how sophisticated the technology becomes.

Consequently, PSV 2028 places unprecedented emphasis on consumer protection, fraud reduction and complaint resolution.

The framework targets a significant reduction in fraud losses by 2028, while aiming to ensure that 95 per cent of customer complaints are resolved within clearly defined timelines. It also seeks near-universal deployment of automatic transaction reversals and stronger compliance standards across financial institutions.

These measures reflect lessons learned from some of the world’s most successful digital payment ecosystems.

Experience from countries such as India and the United Kingdom suggests that consumers embrace digital finance not merely because transactions are fast but because they trust that problems will be resolved fairly when they occur.

For the CBN, therefore, financial inclusion without consumer confidence would be incomplete.

This philosophy runs throughout the architecture of PSV 2028.

According to Dr. Muhammad Sani Abdullahi, who previously oversaw the economic policy directorate but was recently re-assigned to lead the Corporate Services Directorate, the roadmap is anchored on five strategic priorities. These include modern and resilient payment infrastructure, financial inclusion, consumer protection, financial literacy, innovation and cross-border integration.

The emphasis on infrastructure reflects the changing nature of the global economy.

As commerce becomes increasingly digital, payment systems are evolving into strategic national assets. Efficient payment infrastructure can reduce the cost of doing business, improve productivity, strengthen transparency and support economic competitiveness.

Abdullahi argued that payment systems are now as important to economic growth as roads, ports and power infrastructure.

The ambition is to create a payment ecosystem capable of supporting a modern digital economy at scale.

By 2028, the CBN wants every Nigerian, whether in Maiduguri, Brass, Sokoto or Calabar, to send and receive money almost instantly. It wants digital payments accepted seamlessly across markets, transport hubs, retail stores and rural communities. It wants ten million QR codes and tap-to-phone terminals deployed nationwide.

Most importantly, it wants to reduce the economy’s dependence on cash. How feasible is that?

Despite years of investment in digital finance, physical currency continues to dominate many everyday transactions. Cardoso expressed concern that many traders still reject digital payments, highlighting how behavioural barriers often outlast technological progress.

The roadmap therefore seeks to reduce cash held outside the banking system to below 40 per cent of money in circulation by 2028.

Achieving that objective will require more than technology. It will require affordability.

This concern featured prominently during discussions among industry leaders at the launch.

Managing Director of the Nigeria Inter-Bank Settlement System, Premier Oiwoh,  argued that digital payments should eventually become virtually free for users. Lower transaction costs, he said, would encourage adoption and accelerate Nigeria’s transition towards a more digital economy.

His argument found support among other industry participants, who stressed that affordability remains a significant barrier to financial inclusion, particularly in rural communities.

For Abubakar Suleiman, Managing Director of Sterling Bank, the challenge extends beyond cost. Sustaining trust and ensuring universal access are equally important.

Others focused on the opportunities created by a more efficient payments ecosystem.

Moniepoint founder Tosin Eniolorunda argued that payment systems should become gateways to credit access for small businesses. As digital transactions generate data, financial institutions can use those records to assess risk and extend loans to enterprises that previously lacked formal financial histories.

In that sense, payments become more than a means of transferring money. They become a pathway to economic empowerment.

The vision also extends beyond Nigeria’s borders.

As Africa moves towards greater economic integration through the African Continental Free Trade Area, efficient cross-border payments are becoming increasingly important.

Through initiatives such as the Pan-African Payment and Settlement System, the CBN hopes to position Nigeria as a leading hub for regional financial integration.

Faster and cheaper cross-border payments could improve export competitiveness, facilitate trade and strengthen Nigeria’s role within the African economy.

Whether these ambitions are realised will ultimately depend on execution.

Professor Hassan Oaikhenan of the University of Benin believes the roadmap’s prospects are strengthened by its practical design. Unlike previous frameworks that focused largely on expansion, PSV 2028 directly addresses challenges relating to trust, agent liquidity, financial literacy and gender inclusion.

More importantly, the framework incorporates measurable targets and public accountability mechanisms.

Financial inclusion must rise to 95 per cent. Eighty per cent of small businesses are expected to adopt digital payments. Financial literacy should reach 80 per cent. Customer satisfaction must exceed 95 per cent. Service providers are expected to meet strict performance standards.

These targets suggest a deliberate effort to move from aspirations to measurable outcomes.

Cardoso himself appears conscious of the risks of failure. “The last thing we can do is launch a lovely document, have a great conversation, and come back in another year or two and discuss the same issues,” he warned.

That may ultimately be the most important statement made during the launch.

Nigeria does not lack strategies. It does not lack talent. Nor does it lack technological innovation.

What has often been missing is consistent execution.

The country’s journey to 95 per cent financial inclusion is undoubtedly ambitious. Yet it is also achievable if the reforms move beyond policy documents and become part of everyday economic life.

For millions of Nigerians still excluded from formal finance, the success of PSV 2028 will not be measured by policy speeches, transaction volumes or technology deployments.

It will be measured by something much simpler: whether the financial system becomes accessible, affordable, reliable and trustworthy enough to improve their lives.

That is the real destination of Nigeria’s ambitious journey toward financial inclusion.