The Central Bank of Nigeria has unveiled a new market structure framework aimed at preventing any single financial institution from gaining excessive control over both consumer and merchant payment segments, as regulators move to strengthen competition and reduce concentration risks in the country’s fast-growing digital payments ecosystem.
Under the new rules, any licensed financial institution controlling more than 25 per cent of the consumer-issuing market will be restricted to a maximum 15 per cent share of merchant-acquiring activities, creating clear limits on cross-market dominance.
The latest directive comes amid rapid expansion by banks and fintech companies seeking to offer integrated services to both consumers and merchants as cashless transactions continue to gain traction across Nigeria.
Brandspur Banking News Desk reports that the framework is designed to ensure a more balanced payments landscape and reduce systemic vulnerabilities that could arise if a few institutions become the primary gateways for electronic transactions.
The move reflects the Central Bank’s broader push to strengthen financial infrastructure, deepen digital payments adoption and promote fair competition within the financial services industry. Regulators are increasingly focused on preserving market efficiency as innovation accelerates and new players expand beyond their traditional business segments.
By imposing limits on institutions with significant market power, the apex bank aims to encourage a more diversified ecosystem in which multiple operators can compete effectively across different layers of the payments value chain.
The new framework is expected to influence strategic decisions by banks and fintech firms as they pursue growth opportunities in merchant acquiring, card issuance and digital payment services. Industry participants may also need to reassess expansion plans to ensure compliance with the evolving regulatory landscape.
Nigeria has emerged as one of Africa’s leading digital payments markets, driven by rising smartphone penetration, growing fintech investment and increased adoption of electronic transactions. The latest regulatory intervention underscores the Central Bank’s commitment to maintaining stability while fostering innovation and sustainable growth across the country’s financial system.
