The Central Bank of Nigeria (CBN) has reaffirmed its commitment to promoting financial inclusion and economic growth by encouraging the use of alternative payment systems.1 This was emphasized during a “CBN Fair” held in Calabar, Cross River State.2
The event, themed “Promoting Alternative Payment Channels as Tools for Financial Inclusion, Growth and Accelerated Economic Development,” was part of the CBN’s ongoing efforts to sensitize the public on how its policies and innovations can improve their lives and contribute to the nation’s economic development.3
The Head of Research at the CBN’s Calabar Branch, Jude Nwafor, noted the challenges faced by people in remote areas of Cross River State, where commercial banks are not available in every local government.4 He stated that the fair was designed to raise awareness of alternative payment systems that people in these areas can leverage for their financial transactions.5
The promotion of alternative payment channels is a key part of the CBN’s broader strategy to modernize Nigeria’s payment system and reduce the reliance on physical cash.6 This initiative is aimed at reducing the cost of cash handling, improving transparency, and fostering a more efficient and resilient financial ecosystem.7
Some of the alternative payment systems being promoted by the CBN include:
- Online Payment Platforms: These include popular platforms like Paystack, Flutterwave, and Remita.8
- Mobile Money and Digital Wallets: These services allow users to make payments and transfers using their mobile devices, even in areas with limited access to traditional banking services.9
- Point-of-Sale (POS) Terminals: These devices enable businesses to accept card payments from customers.10
- Internet Banking: This allows for transactions to be conducted online through a bank’s website or app.
- USSD (Unstructured Supplementary Service Data) Services: This technology enables bank transactions to be performed on any mobile phone, regardless of internet connectivity.11
- Quick Response (QR) Codes: This is a quick and secure way to make payments by scanning a code with a mobile phone.12
The CBN’s vision for a modern and inclusive financial system is outlined in its Payments System Vision 2028 (PSV 2028), which aims to accelerate digital transformation and expand financial services to all Nigerians.13 The CBN’s cashless policy, which has been implemented nationwide in stages since 2012, is a core component of this vision.14
