According to the Nigeria Inter-Bank Settlement System (NIBSS), January recorded the highest monthly value at N100 trillion, followed by N88.8 trillion in February and N96 trillion in March. Transaction volumes mirrored this trend, with January peaking at 792 million transactions.

The surge is attributed to cash scarcity, rising fintech adoption, and growing consumer confidence in digital payment platforms such as internet banking, mobile apps, USSD, ATMs, and POS systems.

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PalmPay, one of Nigeria’s foremost fintech platforms, has announced a milestone achievement in its operations, recording over 15 million daily transactions in the first quarter of 2025 — a significant leap from the 10 million daily transactions it recorded in 2024.

The development was revealed during a media roundtable on Wednesday, where the company presented its Q1 2025 performance report.

According to the report, PalmPay now boasts a user base of 35 million, with each user conducting an average of 50 transactions monthly. The company also recorded an 80% customer retention rate, serving more than 13 million monthly users through a vast network of over 1 million mobile money agents and merchants spread across the country.

One of the highlights of the quarter was PalmPay’s disbursement of N4 billion in interest payments to users of its PalmPay Wealth Product. The platform currently serves 9 million monthly active wealth users, offering flexible savings plans with interest rates of up to 20% annually, and Smart Earn rates peaking at 22%.

To further strengthen its infrastructure, PalmPay opened a new physical office in February to enhance customer support and reduce issue resolution times. In March, the company expanded its digital financial ecosystem with the launch of PalmPay Debit Cards.

Speaking at the roundtable, PalmPay CEO Chika Nwosu disclosed that the company plans to distribute 5 million debit cards nationwide and open new offices across Nigeria’s six geopolitical zones. He added that PalmPay is also intensifying efforts to deepen financial inclusion in underserved areas.

On the issue of financial fraud, which has increasingly plagued the fintech sector, Nwosu said the company is actively improving its risk management protocols. “One of the challenges we encounter in the fintech space is related to fraud. We are responding by enhancing our security framework to protect our users and ensure trust in our platform,” he stated.

PalmPay has implemented a suite of security features including real-time transaction monitoring, multi-factor authentication, and account lock tools aimed at safeguarding user transactions.

The surge in PalmPay’s transaction volume aligns with broader industry trends. Data from the Nigeria Inter-Bank Settlement Systems (NIBSS) showed that mobile money operators — including PalmPay, OPay, and others — processed transactions worth N71.5 trillion in 2024, marking a 53.4% increase from the N46.6 trillion recorded in 2023. The total volume of transactions also rose by 23%, from 3 billion in 2023 to 3.9 billion in 2024.

Industry analysts predict further growth in 2025, driven by the projected rise in smartphone penetration and digital financial literacy across Nigeria.

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Bank Verification Number (BVN) enrollments in Nigeria have surged to 63.4 million as of September 2024, according to the latest data released by the Nigeria Inter-Bank Settlement System (NIBSS).

This reflects a significant increase from the 62.7 million recorded in July 2024, with 750,048 new registrations in the last two months.NIBSS data further reveals that since December 2023, when BVN enrollments stood at 60 million, the database has grown by 3.4 million in 2024.

The increase in BVN registration is likely a result of the Central Bank of Nigeria’s (CBN) directive in December 2023, which mandated that all bank accounts not linked to a BVN be frozen by April 2024.

The CBN’s directive also requires commercial, merchant, non-interest, payment service banks, other financial institutions, and mobile money operators to ensure that all accounts and wallets are linked to either a BVN or a National Identification Number (NIN).

Despite the growth in BVN registrations, a significant gap remains between the number of registered BVNs and active bank accounts in the country.

NIBSS reported 231.1 million active bank accounts as of July 2024, far outpacing the 63.4 million BVNs currently registered. However, experts suggest the disparity may not be as large as it appears, as multiple accounts can be linked to a single BVN.

According to the Enhancing Financial Innovation and Access (EFInA) 2023 survey, about 5% (3 million) of banked adults in Nigeria do not have either a BVN or a NIN, highlighting the ongoing need for compliance with the CBN’s regulations.

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The Corporate Affairs Commission (CAC) has announced plans to take drastic measures, including shutting down Point of Sale (PoS) businesses that have failed to comply with its mandatory registration directive.

This follows the expiration of a 60-day registration deadline on September 5, 2024.

In a public notice issued on Friday, the CAC stated that there was inadequate compliance with its directive and warned that operators who failed to register might be involved in “unwholesome activities.”

The commission emphasized its commitment to work with law enforcement agencies and other stakeholders to implement a comprehensive enforcement and sanction framework, which could include business shutdowns and severe legal consequences.

“The Corporate Affairs Commission wishes to remind the general public, particularly Fintech operators also known as Point of Sale (POS) operators, that the 60-day deadline…for the registration of such businesses expired on September 5, 2024,” the notice read.

The commission commended those who had complied but criticized those who had not, suggesting that their refusal could be due to involvement in improper activities.

This development comes amid opposition from fintech business owners under the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN), who have challenged the CAC’s registration requirement in court, describing it as illegal.

AMMBAN maintains that the directive violates the Companies and Allied Matters Act (CAMA), which states that the CAC has no jurisdiction over individuals not operating as a company.

The association’s General Secretary, Oluwasegun Elegbede, stated that the case is already in court and is set for hearing in September.

Earlier in May, the CAC had mandated that PoS agents of major fintech companies, including OPay, Palmpay, and Moniepoint, register their businesses by July 7, 2024.

The deadline was later extended to September 5, 2024, with a warning that non-compliance would lead to prosecution and potential business closures.The directive comes amid concerns about rising fraud involving PoS terminals and the Central Bank of Nigeria’s (CBN) efforts to regulate cryptocurrency transactions.

According to the Nigeria Inter-Bank Settlement System (NIBSS) Plc, PoS terminals accounted for 26.37% of fraud incidents in 2023.

CAC’s Registrar-General, Hussaini Magaji, defended the registration requirement, citing Section 863, Subsection 1 of the Companies and Allied Matters Act (CAMA) 2020 and the 2013 CBN guidelines on agent banking.

He argued that the move is aimed at safeguarding fintech businesses and customers while strengthening the economy.

As the court prepares to hear the case, the CAC remains resolute in its enforcement strategy, with potential business shutdowns looming for non-compliant operators.

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The Federal Government has officially designated the Nigeria Inter-Bank Settlement System (NIBSS), the Bank Verification Number (BVN), and the National Identification Number (NIN) databases as Critical National Information Infrastructure (CNII).

This designation is part of the newly released ‘Designation and Protection of Critical National Information Infrastructure Order, 2024’, which was recently signed by President Bola Tinubu.The inclusion of these databases under the CNII status signifies that any attack or tampering with these infrastructures is now considered a criminal offense, subject to prosecution.

The gazetted order also extends this protection to other key electronic payment gateways and the Treasury Single Account (TSA) database, emphasizing the importance of safeguarding these systems from any form of interference.

The objective of this Presidential Order, as outlined in the gazette, is to ensure the protection and uninterrupted functioning of vital ICT systems, networks, and infrastructure.

These are deemed essential for driving national development, ensuring economic stability, maintaining national security and defense, and supporting public health, safety, and government operations.

Dr. Bosun Tijani, the Minister of Communications, Innovation, and Digital Economy, hailed the gazette’s release as a significant milestone. He noted that the designation of all telecommunications infrastructure in the country as CNII is particularly important.

This measure is expected to enhance the quality of telecom services by curbing disruptions caused by intentional damage to critical infrastructure.

“This gazette now makes it an offense to wilfully damage assets such as telco towers/sites, switch stations, data centres, satellite infrastructure, submarine & fibre optic cables, transmission equipment, e-government platforms, databases among many others,” Tijani stated.

For years, stakeholders in Nigeria’s ICT sector have urged the government to classify telecom infrastructure as a critical national asset to combat persistent attacks.

In March, the Chairman of the Association of Licensed Telecommunications Operators of Nigeria, Gbenga Adebayo, reiterated this call after Nigeria experienced an internet outage due to damage to fibre optic cables.Telecom operators have faced significant challenges in this regard.

In 2023, MTN Nigeria reported over 6,000 cuts to its fibre cables and relocated 2,500 kilometers of vulnerable cables at a cost exceeding N11 billion.

Similarly, Carl Cruz, CEO of Airtel Nigeria, revealed that the company has been recording an average of 1,000 fibre cuts each month.The new CNII designation aims to address these challenges by ensuring stronger legal protection for critical ICT infrastructure across Nigeria.

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The Nigeria Inter-Bank Settlement System (NIBSS) is currently experiencing significant downtime, causing widespread delays in electronic transactions. This disruption has impacted various financial technology firms and banks, leaving many customers frustrated and unable to complete routine transactions.

Financial technology firms (fintechs) like Eversend and Kuda Bank have alerted their customers about the ongoing issues.

Eversend informed its users that delays in naira transactions are expected to persist, affecting top-ups and payouts within the app. Similarly, Kuda Bank notified its customers that intermittent issues with NIBSS are causing delays in money transfers.

Transfers to and from Kuda accounts, as well as transfers between Kuda and PalmPay accounts, are reportedly unaffected.

“We’ll keep you updated on our status page – status.kuda.com,” Kuda said in a notice to its customers.

The NIBSS instant payment platform is a real-time electronic funds transfer (EFT) system that enables financial institutions to offer immediate online funds transfer services.

The current downtime is hampering the ability of these institutions to provide such services, causing significant inconvenience to customers.One customer of Guaranteed Trust Bank (GTB) reported that a transfer made at 2 PM had not been received by the recipient hours later.

Another customer from United Bank for Africa (UBA) echoed similar difficulties with transferring funds.

TechDigest understands that the downtime has particularly affected transactions such as the payment of electricity bills, adding to the daily challenges faced by customers.

As NIBSS works to resolve the issues, financial institutions continue to monitor the situation and keep their customers informed.

The exact cause of the downtime and the estimated time for resolution have not been disclosed.In the meantime, customers are advised to use alternative means of transactions where possible and remain patient as efforts to restore the NIBSS platform continue.

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The National Identity Management Commission (NIMC) has unveiled plans to introduce a groundbreaking National ID card with integrated payment capabilities, catering to a wide array of social and financial services for registered Nigerians.

In collaboration with the Central Bank of Nigeria (CBN) and the Nigeria Inter-bank Settlement System (NIBSS), NIMC will roll out the multifunctional ID card, powered by NIBSS’ AfriGO, a domestic card scheme.

Expected to be a game-changer in identity verification and financial inclusion, the card will be imbued with verifiable National Identity features, mandated by the NIMC Act No. 23 of 2007.

Kayode Adegoke, Head of Corporate Communications at NIMC, emphasized that the card’s issuance would be reserved for individuals with a registered National Identification Number (NIN), aligning with NIMC’s mission to empower citizens and facilitate participation in national development.

Designed according to International Civil Aviation Organization (ICAO) standards, the card will serve as the default national identity card, offering not only identity verification but also doubling as a debit or prepaid card when linked to bank accounts.

NIMC highlighted the card’s key features, including a machine-readable zone (MRZ) for e-passport information, biometric authentication through fingerprint and pictures, and offline capability for transactions in areas with limited network coverage.

Furthermore, the card will encompass additional functionalities such as travel, health insurance, microloans, agricultural support, food subsidies, transportation benefits, and energy assistance, enhancing access to government intervention programs.In adherence to data protection regulations and international standards on data security protocols, NIMC assured that users’ data would be safeguarded against breaches, reinforcing public trust in the initiative.

NIMC disclosed that requests for the card could be made online, at commercial banks, participating agencies, or NIMC offices nationwide, ensuring widespread accessibility.

The impending launch of the National ID card underscores Nigeria’s commitment to leveraging technology for inclusive development, fostering financial empowerment, and advancing citizen-centric solutions to societal challenges.

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No fewer than 2.47 Nigerians have registered for Bank Verification Number in the last six months, data from the Nigeria Inter-Bank Settlement System has shown.

The latest figures, released by NIBSS on Saturday, indicated that the BVN count stood at 61.16 million as of March 2024.

Comparing this with the BVN count reported in December 2023, which stood at 59.9 million revealed that 674,280 new registrations were recorded within three months.

Data from September 2023 showed that the number of registered BVNs was 58.7 million, indicating that from September to March, NIBSS recorded 2,466,384 new BVN registrations.

The surge in BVN registrations highlights the growing importance of financial inclusion and regulatory compliance in Nigeria’s banking sector.

On February 14, 2014, the Central Bank of Nigeria introduced the BVN to safeguard bank customers, mitigate fraud, and bolster the Nigerian banking system’s resilience.

In December, the CBN announced its intention to freeze accounts with a BVN, or National Identification Number (NIN), starting April this year.

It also mandated that all BVNs or NINs linked to accounts or wallets be electronically revalidated by January 31, 2024.

Since the issuance of this directive by the apex bank, deposit money banks have been actively utilising their communication platforms to urge customers to update their NIN and BVN details.

In a circular, the apex bank instructed lenders to place a “Post no Debit” restriction – which prevents customers from making withdrawals, transfers, or any other debits “for all existing Tier-1 accounts/wallets without BVN or NIN”.

‘Post No Debit’ is a term used to describe a restriction imposed by banks on specific accounts, preventing customers from making withdrawals, transfers, or any other debits from such accounts.

“Effective immediately, any unfunded account/wallet shall be placed on ‘Post No Debit or Credit’ until the new process is satisfied. Effective March 1, 2024, all funded accounts or wallets shall be placed on ‘Post No Debit or Credit’ and no further transactions permitted,” it stated.

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The financial inclusion rate in Nigeria has improved. Since the country adopted an inclusion strategy in 2012, adult Nigerians with a bank account have increased, and now account for more than two-thirds of the financially included.

According to the 2023 Report on Access to Financial Services in Nigeria, financial inclusion continues to expand and has so far been fueled by marginal growth among the country’s banked population and major gains in non-bank formal adoption.

Although approximately 40 million adult Nigerians remain formally excluded, formal financial inclusion was said to have grown from 56% in 2020 to 64% in 2023.

In the last four years, fintech companies in Nigeria have played a vital role in closing this gap, bringing financial services to the country’s unbanked and driving economic growth. Their successes, however, have not come without challenges.

Following the penetration of digital payment platforms in Africa, a fraud epidemic has plagued the fintech ecosystem in Nigeria, with Mobile, Web and POS being the most exploited channels by fraudsters in the country in 2023.

According to the 2023 NIBSS Annual Fraud Landscape report, incidents of “Fraud loss via Internet Banking increased by 325% between 2022 and 2023.”

The rise of digital payment platforms in Nigeria has increased the potential for cyber fraud, with fintech companies now forced to balance between making payment apps user-friendly and prioritising users’ safety to stem increased cyber fraud.

To address the fraud epidemic, the Fintech Association of Nigeria (FintechNGR) plans to unveil a fraud reporting framework sometime this year, while fintech platforms such as PalmPay continue to take the initiative to reevaluate their in-app safety features to protect their users from the activities of fraudsters.

Since launching in Nigeria in 2019 under a Mobile Money Operator (MMO) licence by CBN, PalmPay has grown to over 30 million users as part of its payment ecosystem.

In building a user-friendly app, the company has also sought to foster a secure financial ecosystem by integrating safety features into its app so that the millions of users who transact with the app do so in a safe and trusted environment.

In general, it employs a closed-loop risk management system that involves continuous monitoring, analysis, and response to fraud threats and allows it to detect and prevent security risks in real-time and reduce the potential impact of fraud.

In particular, to reduce incidents of fraud, protect their users from fraudsters, and provide a safe banking environment, it binds their users’ phones to the app and has an auto-logout and biometrics feature to confirm users’ identity.

Chika Nwosu, Managing Director, PalmPay, said the reason why the fintech platform has witnessed astonishing growth in four years was because “We prioritise the safety and security of our users.” He said they’ve been able to achieve this by “marrying security and safety with the customer experience to create a balance.”

Because it understands that curtailing fraud is a two-way street, PalmPay runs a Wallet Safety Workshop to teach users of its app and POS machines various security topics covering payment security and common security issues in daily life, such as password management, fraud detection, phishing and risk identification.

The safety workshop underscores the understanding of user security as an important part of curtailing fraud and encourages its users to ensure that they always secure their wallets using the several built-in safety features in its app.

A recent example was a series of campaigns encouraging its users to link their wallets with their BVN or NIN, following the directive by the Central Bank of Nigeria (CBN) for users of fintech platforms to link their wallets with their BVN or NIN.

PalmPay users have several options for protecting themselves against fraudsters such as the two-factor verification process that makes it difficult for fraudsters to gain access to users’ apps without spooking them.  In the first half of 2023, millions of users linked their secure email addresses to their PalmPay app. With this feature, users effortlessly receive OTPs for their in-app login.

The app has a device management feature that allows users to manage trusted devices and remove untrusted devices. When logging in on an untrusted device, users complete a comprehensive security verification process that involves inputting an OTP and their PIN to ensure security.

While fintech companies play a role in protecting users from cyber fraud, the rising fraud incidents in Nigeria can sometimes be due to poor digital and financial literacy, but most especially the failure of many victims to report an attack.

In a report last year, Temitayo Oduwole, Head of IT and Payments, PalmPay, observed that customers do not take prompt action in incidents of fraud and that “Only 33 per cent report the same day or take the necessary right action on the same day.”

Effective investigation into incidents of fraud begins when the user reports to their bank that fraud has occurred. However, fraud, if not reported within the hour the crime occurred, allows criminals to move the stolen funds to ‘safe’ places.

Precaution remains the best remedy to protect oneself from cyber fraud. Anti-fraud expert Tosin Adenekan warned fintech users against trusting strangers with their personal information when performing digital transactions.

According to Mrs Adenekan, “Users of fintech platforms owe it to themselves to follow standard safety precautions to avoid being defrauded by cyber criminals.

“Do not allow strangers such as POS operators to handle personal ATM cards. This is because cybercriminals often posing as helpful POS operators can exploit this to observe PIN entries and distract card owners, ultimately swapping ATM cards.”

She urged fintech users to “take steps to reduce incidents of fraud on their wallets by creating strong passwords, enabling the two-factor authentication features on their fintech app, monitoring their wallets for unauthorised transactions, and protecting their personal login information when in public from prying eyes.”

Other steps to take include “regularly updating their apps, setting limits for their wallets, staying alert for phishing attempts, getting the proper financial education, using secure internet connection, being aware of pop-ups and fraudulent emails, and ensuring that operating systems and internet connections are up to date.”

To prevent falling victim to cyber fraud, Mrs Adenekan urged fintech users to adhere to these safety guidelines and “don’t trust everything on the internet.”

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As of September 12, 2023, the Bank Verification Number (BVN) database in Nigeria has reached a substantial 58.7 million entries, according to the latest data released by the Nigeria Inter-Bank Settlement System (NIBSS).

However, despite efforts by the Central Bank of Nigeria to enforce BVN linkage for all bank accounts, the data reveals a slowdown in BVN registrations since the beginning of this year.

Comparing the figures, the BVN database stood at 56.5 million by the end of 2022, indicating an increase of only 2.2 million registrations in the past eight months, including September.

This rate falls significantly below the 2022 monthly average of 400,000 registrations.It’s noteworthy that as of December 2021, Nigeria had 133.5 million active bank accounts. While 2022 data is pending, this underscores the considerable gap between BVN registrations and the total number of bank accounts.

Analysts suggest that the variance might not be substantial, as a single BVN can be linked to multiple bank accounts.

A Bank Verification Number is a unique identifier that facilitates account verification across Nigeria’s banking industry. Every bank customer is assigned this unique ID upon enrollment, linking it to all accounts held across Nigerian banks.

NIBSS emphasizes that BVN enhances identity verification and protects customers’ accounts from unauthorized access.Former CBN Governor Godwin Emefiele had announced plans to close unlinked bank accounts across several Deposit Money Banks (DMBs) to combat fraud.

The Risk Management Department’s Director and Chief Risk Officer, Blaise Ijabor, explained this move’s objective to clean up the financial sector and reduce fraud incidents.Ijabor noted the collaboration between the apex bank and NIBSS to address the growing fraud issue in the sector.

Many bank accounts were observed to lack BVN linkage, complicating fraud tracking.

Although the CBN’s directive aimed to encourage customers to update their records and link their bank accounts to BVNs, the declining registration rate suggests that its impact has yet to be fully realized.

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