WorldStage– Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has said global remittance corridors to developing countries still cost over 6.0 percent, with settlement delays stretching for several days and compliance burdens excluding MSMEs, leaving millions disconnected from global opportunities.
Speaking at the 2026 G-24 Technical Group Meetings on Tuesday in Abuja, Cardoso declared that digital innovation is no longer optional but central to dismantling the bottlenecks choking cross-border payment systems.
He said high remittance costs, FX bottlenecks, and fragmented settlement systems continue to exclude millions of households and MSMEs from global opportunities, arguing that modern payment infrastructure must now be treated as a core macroeconomic and development priority rather than a back-office reform.
“Across the world, cross-border payments are becoming the backbone of the international monetary and financial system. For G-24 economies, inefficiencies in these systems translate directly into higher remittance costs, expensive FX transactions, fragmented settlement processes, and barriers to MSME participation in global trade.
“Improving cross-border payments, therefore, is not simply a technical reform; it is a macroeconomic and development priority. The channels through which capital, remittances, and trade flows move now form a critical part of the global financial stability architecture.”
He emphasized that digital innovation presents a historic opportunity to correct these frictions. Modern payment infrastructure, instant payment systems, interoperable digital platforms, distributed ledger technology, and robust digital identity frameworks can reduce transaction costs for remittances and trade, shorten settlement times, and improve transparency, compliance, and auditability.
“They can also expand access for households and MSMEs traditionally excluded from the formal financial system. Interoperable digital systems strengthen the transmission of monetary policy, expand financial inclusion, and reduce informality, if designed with resilience and strong governance.”
Cardoso noted that these opportunities are already evident globally.
• Unified Payments Interface (UPI), now linked with Singapore and the UAE, has slashed remittance costs and enabled real-time settlement.
• PIX, adopted by over 70 percent of adults within two years, is being integrated into cross-border pilots across Latin America.
“These examples demonstrate what is achievable for G-24 members, including lower costs, better liquidity, stronger SMEs, job creation, and deeper regional integration,” he said.
Cardoso added that Nigeria’s experience shows this potential can be realised through deliberate and sustained policy action. At the CBN, he said, regulatory and supervisory frameworks have been systematically modernised to keep pace with the rapidly evolving digital financial landscape.
“We have strengthened operational oversight of switching and payment infrastructure providers, enhanced agent banking regulations to better address AML/CFT risks, and significantly improved interoperability across payment channels to support efficiency and scale.”
He disclosed that work is being concluded on the new Payment System Vision 2028, developed in collaboration with industry stakeholders and built around five strategic priorities aimed at boosting innovation, strengthening system resilience, and advancing financial inclusion. A central part of the agenda, he said, is improving the cross-border payments environment, where Nigeria has made measurable progress.
To deepen regional integration, the CBN introduced simplified KYC/AML requirements for low-value cross-border transactions to encourage broader participation in the Pan-African Payment and Settlement System (PAPSS). The move has eased transaction processes for Nigerian SMEs by reducing paperwork and enabling faster, more seamless intra-African trade payments.
The apex bank has also expanded its Regulatory Sandbox to allow payment-focused fintechs test new cross-border solutions under close CBN supervision, ensuring innovation does not compromise stability.
In June 2025, Nigeria launched the National Payment Stack, a next-generation real-time payment system built on ISO 20022 messaging and designed to support multi-currency and cross-border transactions. The CBN has also strengthened its AML/CFT frameworks in line with FATF guidelines, requiring strict dual screening of cross-border transactions to mitigate risks.
On remittances, Cardoso said the bank worked with domestic and international stakeholders in 2024 to remove long-standing bottlenecks and expand efficient corridors.
This led to the introduction of new instruments such as the Non-Resident Nigerian Ordinary Account (NRNOA) for remittances and family support, the Non-Resident Nigerian Investment Account (NRNIA) for diaspora investments, and the Non-Resident BVN platform to enable Nigerians abroad open and operate accounts digitally.
As a result of these reforms, he said remittance inflows now average about $600 million per month, with the CBN confident of reaching a $1 billion monthly milestone in the near term.
Beyond regulation, Cardoso said Nigeria has also engaged globally through platforms such as the Strategic Fintech Dialogue at the 2025 IMF Annual Meetings to ensure the country contributes to shaping emerging global standards.
