In a move to ensure Nigeria Payments System gets more global recognition and is domestically utilised across the country, the Director-General of the National Information Technology Development Agency (NITDA), Kashifu Inuwa Abdullahi, CCIE, has restated the need for the Central Bank of Nigeria (CBN) and Financial Institutions in the country to collaborate with the Agency in order to leverage emerging technologies such as Artificial intelligence (AI) and Data Analytics to deepen digital payments.

Inuwa made this known during a panel discussion segment at the Central Bank of Nigeria’s 2023 Payments System Management Departmental Retreat programme.

The DG who was represented at the event by the National Director, National Centre for Artificial intelligence and Robotics (NCAIR), Engr Ya’u Garba, alluded to the fact that financial technology (FinTech) has so far shown immense ability in driving Nigeria’s performance in the industry and Environmental, Social, and Governance (ESG), especially with the application of developmental regulation approach and enabling policies co-created by the tech ecosystem.

According to him, deepening collaborations with key stakeholders will fast track the realisation of the goal, adding that upping the game in digital payments will not only continue to put Nigeria at the forefront as Fintech driven economy but will also enhance consumers’ user experience and help move many people out of poverty.

Responding to questions regarding Nigeria’s efforts toward dealing with the opportunities and threats possed by Artificial intelligence, Inuwa explained that the Federal Government haven noticed that the trajectory of AI models which have moved from linearly to geometrical in proportions had in the previous administration, started working on Artificial intelligence Policy through the Agency which he said would be soon unveiled to the public.

“This AI Policy will form the basis on which all the rules will be highlighted and Agencies like NITDA, which is the implementation arm will be talking about the strategies, framework and guidelines to navigate through its adoption and deployment”.

“Although artificial intelligence is often regarded as a double edged sword, the potential and benefits are tangible but not without a lot of threats, and that is apart from the biases that abound, notwithstanding, our regulatory approach has always been not to stifle innovation.”, Inuwa noted.

Inuwa who also mentioned other policies of the Federal Government for the industry, maintained that the policies are start-up ecosystem- friendly.

While avowing that there is the need for measures to be deliberately taken to reap the benefits and forestall the impending threats of AI, Inuwa emphasised that NITDA will be working collaboratively with CBN as with others, in regulating the AI space, stressing that if CBN adopts a particular technology, the potential of such tech to move quickly is high.

The NITDA boss told the audience that the Start-up Bill which was passed by the National Assembly and assented to by former President Muhammadu Buhari in October 2022 will address almost, if not all the bottlenecks plaguing the tech ecosystem.

The Fintech industry, according to Inuwa, is blazing the trail, but said there are a lot more to be tapped from, if AI is explored and exploited accordingly.

He went further to stress that government needs to work with the United Nations, World Bank and others to see how they can help build the infrastructure for FinTech, in order to foster digital payments and possibly close the digital gap.

“The Startup Act is deemed to be a positive step forward for the country’s startup ecosystem, and it is expected to have a significant impact on businesses in the technology and innovation space”.

“We have other policies tailored towards the bigger picture, like the 3MTT programme by the Federal Ministry of Communications, Innovation & Digital Economy which is expected to generate a pipeline of technical talent in line with President Bola Ahmed Tinubu’s vision of creating 2 million digital jobs by 2025, National Broadband Plan, Digital Identity Policy and the National Financial Policy which drive the financial inclusion in the country,” Inuwa affirmed.

Earlier, while welcoming guests, the Director, Payments System Management Department, CBN, Musa Jimoh harped on the need to look into the future and embrace things that are contemporary to Nigeria and the world at large and ensure that all the thinking behind Payments system should be hinged on how it can benefit the common man on the street.

“Everything we do in Central Bank of Nigeria, if it cannot benefit the common man on the street, then we have done nothing because the payments system is not for us but for the public good, especially as everybody uses it.

“As such, our thinking should always be what can we do to ease the pain, reduce cost, serve and make things more efficient and available to the common man on the street and indeed to all Nigerians, whether in the country or in the diaspora”, Musa sued.

The Retreat of Payments System Management Department of the Central Bank of Nigeria brought together payments industry experts and stimulated discussions around innovations in the Payments System space.

The retreat had as its main theme: “Future of Payments System: Opportunities, threats and propositions.

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TECHDIGEST – The Central Bank of Nigeria (CBN) has said the e-Naira which would be launched on October 1, 2021, is a form of payment by all merchants and business outlets.

The CBN Director, Payment System Management, Musa Jimoh, asked Nigerians to open e-Naira wallets which could be downloaded on their phones from October 1.

Jimoh who disclosed this on Monday, September 20, added that charges of transferring funds would be lower for those using the e-naira.

He said: “Today, anywhere you present naira to pay, compulsorily it must be accepted because that is our fiat currency. So, the same way naira is accepted that you can’t reject it, is the same way e-naira must be accepted. Anywhere in this country where e-naira is presented, it must be accepted. So, merchants must accept e-naira as a means of payment.

“The liability of the e-naira money is directly on CBN which is similar to the cash you hold. The liability of the cash you hold today rests with the CBN. So, it gives Nigerians the opportunity to bank with CBN.”

Speaking on whether Nigeria is ripe for the e-Naira due to the technological challenges in the country, Jimoh said he didn’t expect it to be a major problem.

According to him, “E-naira is a journey. We don’t expect that on October 1, all business merchants in Nigeria will accept it. We don’t even expect that come October 1, all Nigerians will have e-naira. It is a journey. It will continue to grow.

“Remember there was a time in this country when you had to practically beg business outlets, merchants and others to accept POS transactions. But we have come to a point where traders now beg for POS terminals.

The CBN director added that e-naira comes with many benefits and would save the cost of printing more notes.
“Today the cost of producing the naira and coins is very high. It costs money to print naira in this country. Now, the minting of e-naira is electronic so it reduces cost.”

Commenting on a foreign firm chosen by the CBN instead of a Financial Technology company in Nigeria, Jimoh said it had to do with capacity.

Jimoh explained further that the company would be registered and managed in part by Nigerians while the technological aspect would be handled by the foreign arm.

The CBN director said: “The CBN digital currency is not what every country has implemented. We are blazing the trail in Africa. Nigeria is the only country in Africa that is doing it. And so many advanced countries are not doing it. You can only talk of China and the Bahamas that have tried to do something serious on central bank digital currency.

“So, the technology is not everywhere you need to be very sure. You cannot use Nigeria as a testing ground and say oh if it works, well, if it doesn’t work. You have to use entities that have actually done it, that are sure of it.

“What we did is to partner with an entity that has done it, that has that experience because we know that eventually the system is going to run in Nigeria.

“So, we also want to domicile some responsibilities here. So, the arrangement is such that you are going to have a Nigerian incorporated company, Bitt Nigeria, which will basically be running the system.”

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