March 22, (THEWILL) — Nigerian banks are preparing for a new phase of growth that is expected to arise from the two-year recapitalisation process as the deadline of March 31, 2026 approaches. The post-recapitalisation phase will subject banks to intense competition and test their abilities to provide exceptional service while adjusting to the new realities of changing global standards.
Central to the impending new phase are digital innovations that propel the instant e-payment system, which has transformed the global financial services landscape and deepened financial inclusion – among other aspects.
Beginning in 2024, Nigerian banks have embarked on significant improvements to their electronic banking systems aimed at maximizing performance and boosting revenue, leading to heightened competition for a larger market share. The shift to new core systems in the digital realm is shaped by multiple considerations, including security, cost management, and operational flexibility.
Nonetheless, the primary emphasis is on achieving the best possible advantages, particularly from the Nigeria Inter-Bank Settlement System (NIBSS), the entity tasked with developing the country’s digital infrastructure.
Recently, NIBSS has achieved remarkable achievements in its efforts to fortify and elevate the digital infrastructure to a world-class level, a development that has garnered international attention.
Quantum leap
Nigeria’s payment system has experienced dramatic growth over the past decade, driven by regulatory reforms from the Central Bank of Nigeria (CBN) and technological innovation by NIBSS.
The backbone of the country’s realtime payments infrastructure is the NIBSS Instant Payments (NIP) platform, launched in 2011 to enable instant interbank transfers across banks, mobile apps, pointofsale (PoS) terminals, ATMs and USSD channels.
NIP now processes billions of transactions annually and operates 24/7 with most transactions settling in under one second, underscoring notable improvements in speed and reliability over earlier systems.
In 2024, electronic payment transactions in Nigeria reached an alltime high of approximately N1.07 quadrillion (about $702 billion), representing nearly an 80 percent increase from N600 trillion in 2023.
The volume of transactions processed rose from 9.7 billion in 2023 to approximately 11.2 billion in 2024, a 15.5 percent yearonyear increase, reflecting growing adoption of digital channels by individuals and businesses.
The NIP platform alone handles the bulk of these instant payments, with active accounts and user reach expanding to cover a substantial share of Nigeria’s adult population, enabled by interoperability across nearly all banks and financial institutions.
Despite infrastructure challenges such as periodic network and power constraints, the system’s operational uptime and settlement speeds have steadily improved, and NIBSS continues to upgrade messaging and interoperability standards, including transitioning toward ISO 20022 compliance.
Global acclaim
Nigeria’s payment system has also earned regional recognition. In 2025, NIP became the first instant payment system in Africa to reach the ‘mature’ level on the AfricaNenda Inclusivity Spectrum, a framework that assesses functionality, governance, accessibility and consumer protections. This rating places Nigeria at the highest tier among African instant payment systems, ahead of peers in markets such as Ghana and Kenya.
In strict quantitative terms, Nigeria’s payment infrastructure is larger and more active than those of most African economies, although adoption rates in some segments (e.g., mobile money accounts) remain lower than leaders like Ghana. Independent research suggests that Nigeria leads in formal account ownership and formal savings but trails in mobilemoney penetration relative to some West African peers.
Recapitalisation imperative
In March 2024, the Central Bank of Nigeria (CBN) mandated banks to substantially raise their minimum paid-up capital according to the type of banking license they possess. Banks holding an international authorisation license must maintain a minimum capital base of N500 billion, whereas those with national authorisation are expected to achieve N200 billion.
Banks with regional authorization licenses and merchant banks are subject to lower minimum capital requirements of N50 billion each, while non-interest banks with national and regional authorizations must meet minimum thresholds of N20 billion and N10 billion, respectively.
The CBN has announced that 30 banks have successfully met the new minimum capital requirements introduced under its ongoing banking sector recapitalisation programme, while three others are currently undergoing regulatory verification.
In a statement signed by its Acting Director of Corporate Communications, Hakama Sidi-Ali, on March 6, 2026, the apex bank disclosed that a total of 33 banks have raised fresh capital through various funding channels. These include rights issues, initial public offerings (IPOs), and private placements.
Out of these, 30 banks have already met the required capital thresholds applicable to their licence categories while the capital positions of the remaining three banks are currently undergoing routine supervisory verification before their compliance can be formally confirmed.
New tax order
One area the post-recapitalisation phase would be noticeable is the new tax regime which places greater responsibilities on banks and also demand significant efforts from their employees.
In the digital era, effective tax systems are no longer primarily founded on coercion, discretion, or manual processes, but rather on technology-driven transparency, data-informed administration, and a clear connection between taxation and the creation of public value.
Countries that have achieved sustainable improvements in tax performance have accomplished this by investing in digital identity, interoperable data systems, automated compliance, and real-time accountability mechanisms – instruments that alleviate burdens for taxpayers while enhancing state capacity.
In Nigeria, NIBSS serves the purpose of providing the electronic payment infrastructure that enables same-day clearing and settlement of inter-bank transfers, transactions, and various financial activities. It functions as a central switch, facilitating interoperability among banks and other financial institutions to process payments securely and efficiently.
The effects are evident in the increase in BVN enrolments in Nigeria, which rose by six percent to 67.8 million in 2025, according to data from NIBSS. This latest figure signifies a notable increase from the previous year, highlighting sustained growth in the country’s banking population and ongoing initiatives to enhance financial inclusion.
Industry specialists assert that Nigeria’s digital infrastructure aids the implementation of new tax laws by simplifying compliance, improving enforcement, and expanding the tax base through integrated data systems. Key elements in this domain encompass unified identity systems (TIN, NIN, BVN), automated e-filing platforms for real-time reporting, and digital monitoring of virtual assets to prevent evasion.
Moreover, the integration of NIN, TIN and BVN across various agencies creates a singular, cohesive profile for taxpayers, minimizing double taxation and enhancing identification. Furthermore, automated portals facilitate immediate filing, assessment, and payment of taxes. This renders the processes less burdensome for taxpayers while boosting efficiency.
The BVN scheme, initiated by the CBN and overseen by NIBSS, aims to bolster the integrity of the financial system by providing a unique identity for bank customers which the new tax system has leveraged.
Industry analysts attribute the rise in BVN enrolments to improved access to banking services, greater adoption of digital financial products, and regulatory measures that encourage Nigerians, including those in rural and underserved regions, to open bank accounts.
The increase in BVN registrations is also anticipated to promote transparency within the financial sector, mitigate fraud, and enhance the effectiveness of customer identification across banks and other financial institutions.
NIBSS has emphasised that ongoing collaboration among banks, fintech companies, and regulators is essential to maintain this momentum and ensure that a greater number of Nigerians are integrated into the formal financial system. The post-recapitalisation era will witness tremendous growth on this basis.
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
