Nigeria says it is accelerating digital payment reforms to fix what it describes as a broken global payment system that sidelines developing economies.
Speaking at the G-24 Technical Group Meetings in Abuja, Central Bank of Nigeria Governor Olayemi Cardoso said cross-border payments remain slow, costly and fragmented.
“Today, cross-border payments remain too slow, too costly, and too fragmented, especially for developing economies,” Cardoso said.
“With global remittance corridors costing over 6.0 percent, settlement lags of several days, and compliance burdens that exclude MSMEs, millions remain disconnected from global opportunity.”
He argued that global financial infrastructure has become a barrier for emerging markets, stressing: “At the heart of this transformation lies a simple, yet powerful truth: an economy cannot be more inclusive than its payment system.”
The G-24, which includes 28 countries from Africa, Asia and Latin America, has long advocated fairer access to global finance.
Cardoso pointed to India and Brazil as examples of interoperable, instant payment systems lowering costs.
Under its Payment System Vision 2028, the Central Bank of Nigeria has upgraded infrastructure and in 2025 launched a National Payment Stack based on ISO 20022 standards for multi-currency and cross-border transactions.
Simplified KYC and AML rules for small transfers and new diaspora account structures have eased access for SMEs and households, according to Business Insider Africa.
Remittance inflows now average about $600 million monthly, with a target of $1 billion in the near term.
Cardoso said the broader aim is financial sovereignty: “Digital cross-border systems could reshape global finance by enabling local-currency settlement, reducing dependence on reserve currencies, and strengthening South-South integration.”
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He warned, however: “Without coordination, digital cross-border payments risk becoming fragmented across jurisdictions, entrenching dominant currencies and platforms, reducing interoperability, increasing costs and undermining the ability of Emerging Market and Developing Economies to safeguard monetary sovereignty.”
Finance Minister Wale Edun said tightening global conditions and debt distress are threatening growth.
“Over a quarter of EMDEs have already lost access to international capital markets, while more than half of low-income countries are in or approaching debt distress,” he said.
“This tightening financing environment threatens much-needed investments in health, education, infrastructure, and climate resilience.”
He described an “Age of Competition” driven by geopolitical tensions and trade restrictions that could cut global output by up to two percentage points, with Africa most affected despite accounting for 17 percent of the world’s population but only 3 percent of trade and 2.5 percent of GDP.
Edun called for reform of the global financial system, including strengthening the International Monetary Fund safety net, expanding concessional lending and boosting local-currency financing.
Nigeria, he said, is shifting from debt-led to investment-led growth, targeting 7 percent GDP growth, investment at 30 percent of GDP and stronger fiscal resilience.
Iyabo Masha, Director and Head of the G-24 Secretariat, described developing countries as operating in a period of “measured resilience but constrained ambition.”
She noted external debt reached $487 billion in 2023 and warned that limited fiscal space and weak public investment threaten infrastructure and climate goals, calling for stronger fiscal frameworks, credible monetary policy and smarter investment in human capital and climate adaptation.
Overall, Nigeria says its digital payment reforms are not just about faster transactions but about reshaping how emerging markets participate in the global economy.
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Image Credit: Freepik
