In a report, the Nigeria Payments System Vision, 2025, by the Central Bank of Nigeria, the African nation seeks to explore an international Central Bank Digital Currency (CBDC) with other nations around the world.
Although a digital currency, eNaira, was launched last year, the apex bank said in the report that it would “keep an active watching brief on a blockchain solution for the Naira”.
According to the CBN, the collaboration with other nations for enhanced payment systems will cover relevant blockchain solutions already deployed in foreign countries with the aim of systematically adopting them in Nigeria.
“A position paper that identifies potential use cases, deployment approaches and time scales would be developed, in collaboration with industry stakeholders,” CBN noted
APIs for CBDCs, blockchain for remittance, and agency banking
Given the cross-border CBDC development, the CBN said that it “will consider the applicability for API integration on CBDC to foster innovation.” This will allow for the integration of several players who can share the APIs and use the CBDC as a payment tool. In essence, the CBN highlighted that it will “engage relevant stakeholders to review and implement remittance solutions using blockchain technology”.
Furthermore, the CBN explained that Agency Banking will be an important part of the national payment system that can help reach the unbanked in rural areas of the nation. “The CBN would therefore continue to drive the Agent Banking initiative, and support the industry to explore solutions that aid financial inclusion,” the Nigeria Payments System Vision, 2025 report read.
Nigerians should also expect contactless payment devices such as Quick Response Codes and Contactless Cards to be part of the reviews the CBN will make on the current Request for Payment (RfP) Scheme.
Open banking system
Another emphasis by the CBN is implementing a full Open Banking structure in the payment system of the nation. Open banking involves the use of technology in delivering financial services where open APIs are provided for third-party integration.
“A Workgroup drawn from all sectors of the industry will be tasked with creating the Open Banking Roadmap for Nigeria that includes a proposal for a regulatory sandbox appropriate for the Nigerian Market,” CBN added. The workgroup will use the Europe PSD2 model as a reference for the development.
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