E-Financial
The Role of E-Payment Systems in Doing Business in Nigeria

By Rotimi Adeniyi-Akintola
Countries the world over are witnessing the rapid evolution of payment systems. These changes follow the technological shift from traditional modes of payment such as cash, cheques and cards, to the digital frontier of virtual currency and mobile platforms.
According to Capgemini and BNP Paribas World Payments Report, global non-cash transactions broke a decade-long record for growth in 2014-2015, with growth volumes in excess of 11%; to reach more than 433 billion transactions.
Two regions fuelled this increase: emerging Asia with a growth rate of 43.4% and CEMEA (Central Europe, Middle East, and Africa), with 16.4% growth. Nowhere has the growth of e-payment been more evident than in Africa.
The swell of different means of electronic payments (e-payment) and mobile payments continues to have a direct impact on local economies in Africa.
Whilst Kenya remains the continent-leader in this regard, thanks to the emergence of the likes of M-Pesa. Nigeria has also witnessed a sizeable increase in the volume of e-payments in recent years.
However, without significantly increasing the rate of financial inclusion in the country through innovative methods, some of which are discussed below, Nigeria runs the risk of never fully actualizing the expansive potential of e-payments on her economy.
Electronic or “E”-payments have significant economic benefits for individuals and businesses alike. Electronic payment lowers costs for businesses, as the more payments they can process electronically, the less they spend on paper and postage.
The convenience of e-payments can also help businesses improve customer retention, in comparison with those offering only traditional means of payments. The direct impacts of e-payments on a country’s GDP are well known and documented.
In 2016, a report by Moody’s Analytics on “The Impact of Electronic Payments on Economic Growth” stated that the explosion of e-payments resulted in an added US$460 million to Nigeria’s GDP from 2011 to 2015.
According to Christine Lagarde, Managing Director of the International Monetary Fund (IMF), Nigeria could save as much as US$9 billion – N3.24 trillion by shifting government payments alone from cash to digital systems.
She was further quoted as saying that such a shift creates the potential to help reduce corruption, increase revenues, and generate investments in health and education.
What this means is that digital tools could be a decisive factor for Nigeria in meeting the 2030 Sustainable Development Goals.
If the expected effect of the shift of government payments alone to e-payment would result in such huge gains, the impact of a similar shift in the private sector would certainly drive economic growth to seismic proportions.
However, despite the adoption of digital payments, cash continues to be utilized as the mainstream mode of payment in Nigeria, especially for low-value transactions.
Cash remains hugely popular in Nigeria, due to the anonymity it affords, the lack of adequate modernised payment infrastructure, and challenges with access to banking systems for the majority of Nigerians (financial inclusion). Other systemic challenges include the poor state of basic infrastructure; particularly electricity/power and telecommunications infrastructure.
Low literacy levels, infrastructure vandalism, and security issues mount further pressures on the shift to more advanced payment systems. Nonetheless, efforts to surmount these obstacles abound, and the opportunity to develop secure and efficient e-payment instruments to drive further economic growth, exists for Nigeria.
What is financial inclusion, and why is it important?
Financial inclusion is one of the major challenges to the growth of e-payments in Nigeria. Despite the Central Bank of Nigeria’s (CBN) target of 80% financial inclusion by the year 2020, the nation continues to struggle to provide financial products and services to its adult population, particularly the low-income demographic.
Financial inclusion matters, as it is one of the most important drivers of economic development. The benefits of financial inclusion for the poor are extremely significant.
Money which sits outside the banking system; in drawers, mattresses and the like, is unable to appreciate in value by earning interest, and hence has a lower worth or net present value when used in the future.
Financial inclusion would provide low income individuals and families with the means to safely make day-to-day transactions, safeguard their meagre savings, manage cash flow spikes and build working capital.
This capital can finance small businesses or micro-enterprises, mitigate shocks and expenses related to unexpected events such as medical emergencies, and improve overall welfare.
According to a 2016 report by Enhancing Financial Innovation & Access (EFInA), a financial sector development organisation, 40.1 million Nigerian adults, representing 41.6% of the adult population are financially excluded – do not have access to bank accounts or financial services. This is a huge setback to the drive towards more advanced e-payment solutions.
Radical measures are required to effectively provide a population of over 170 million citizens with access to financial services.
To this end, the Nigerian government has introduced key regulatory initiatives to drive financial inclusion and electronic payments. In 2012, the cashless society project – to make Nigeria a top-20 economy by 2020 was introduced, as part of a larger Financial System Strategy 2020 vision to boost Nigeria’s financial system.
Further, in 2017, the CBN reintroduced charges for cash handling, starting with 1.5% for cash deposits and 2% for cash withdrawals between 500,000 to 1,000,000 naira. These measures have not been enough to catalyse Nigeria’s financial inclusion goals.
Boosting Financial Inclusion and E-payments
A major untapped resource for advancing financial inclusion would be to leverage existing telecommunications networks. Current mobile penetration stands at over 238,116,977active lines according to the Nigerian Communications Commission, with 21 million smartphones in circulation according to Jumia Mobile Report 2018. Compared to the 97.57 million bank accounts reported by the Nigeria Inter-Bank Settlement System (NIBSS) as being in existence in February 2017, it is evident that more Nigerians own mobile phones than those that operate bank accounts, even accounting for double or multiple mobile line registrations.
A report by KPMG Africa, estimated that only 30 million Nigerians have access to bank accounts.
There is therefore a clear incentive to harness mobile penetration as a means of driving e-payments and in turn driving economic growth.
The example of Kenya could provide some guidance here. Kenyans transacted a record US$33 billion on mobile money transactions in 2016, up from US$27.8 billion from the previous year, according to data from the Central Bank of Kenya.
In recognising this potential, and in an effort to bolster the use of mobile money, the CBN has repealed its decision to exclude telecommunications companies in Nigeria entirely from operating as purveyors of mobile money.
Approval was given to Globacom, Nigeria’s second national operator, to create 500,000 mobile money agent outlets in the country through the Glo Xchange, a mobile money agent network in partnership with 3 commercial banks.
Whilst this is a positive development, much more is required by the CBN in opening mobile payments to the telecommunications companies without restricting them to commercial banks. This will further harness their rich subscriber base.
The CBN is advised to identify opportunities to engage stakeholders and experts in dialogue, to identify avenues for collaboration on mobile payments, and mitigate potential problem areas.
The role of e-payments and financial inclusion in Nigeria’s economy will be further discussed at the “Technology as a Catalyst for the Ease of Doing Business” Conference 2018, due to hold on October 5, 2018, organised by Perchstone & Graeys and Knowledge Resources Limited, in conjunction with The Presidential Enabling Business Environment Council (PEBEC).
If interested, kindly send an email to editor@perchstoneandgraeys.com to express your interest in attending this conference.
E-Financial
Secret Service Seizes $400M in Crypto, Cold Wallet among World’s Largest

US Secret Service has quietly seized nearly $400 million in digital assets over the past decade, amassing one of the world’s largest crypto cold wallets, Bloomberg reported at the weekend, citing people familiar with the matter.
The agency’s Global Investigative Operations Center (GIOC) has tracked funds through open-source tools, blockchain analysis, and patience, Jamie Lam, an investigative analyst with the US Secret Service, reportedly told law enforcement officials in Bermuda last month.
The agency’s crypto trove, much of which sits in a single cold-storage wallet, results from a string of investigations into scams. Scammers lure targets into seemingly legitimate crypto investment platforms in one typical scheme.
Victims often see initial profits before the sites vanish with their deposits.
“That’s how they do it,” Lam said. “They’ll send you a photo of a really good-looking guy or girl. But it’s probably some old guy in Russia.”
Lam’s team uses domain records, blockchain transactions, and VPN slip-ups to identify fraudsters. In one case, a cryptocurrency payment led investigators to another wallet. In another one, a brief VPN failure exposed an IP address, helping agents piece together the scam’s digital trail.
At the helm of the Secret Service’s crypto strategy is Kali Smith, who directs a team that has trained officials in over 60 countries to unmask online financial crimes.
The agency has focused on jurisdictions with weak oversight or programs selling residency to foreign nationals. “Sometimes after just a week-long training, they can be like, ‘Wow, we didn’t even realize that this is occurring in our country,’” Smith said.
The Secret Service’s work has uncovered scams ranging from romance-investment schemes to sextortion cases. One investigation involved an Idaho teenager who sent a nude photo to an online stranger. The scammer extorted $300 twice before the teen went to the police.
Analysts traced the payments through another coerced teenager acting as a money mule, leading to an account tied to nearly $4.1 million in transactions under a Nigerian passport.
British police arrested the suspected extortionist when he arrived in Guildford, England, where he remains in custody pending extradition.
E-Financial
Ascensia Finance Commences Operations in Abuja

Ascensia Finance Company has officially commenced operations to provide financial intermediation services in Abuja.
Licensed by the Central Bank of Nigeria (CBN) in April, the financial institution aims to support individuals and small businesses through customised financial solutions delivered via efficient and accessible channels.
It offers a broad range of services, including loans, investment products, and financial advisory services tailored to meet the evolving needs of its customers.
In a statement, Mr. Jude Ezeami, Managing Director/Chief Executive, Ascensia, stated that proud member of the Finance House Association of Nigeria (FHAN), and in partnership with the Nigeria Interbank Settlement System Plc (NIBSS) and Remita, the company is leveraging strong institutional relationships and digital infrastructure to offer reliable financial services.
He said, “At Ascensia, we are committed to the growth of our clients by delivering inclusive, customer-centric financial services that empower individuals and small businesses to thrive.
“Our suite of products is designed to address the financing needs of Nigerians — whether through accessible personal loans, business financing, or innovative investment solutions.”
He said with the company’s strong foundation, experienced leadership, and a deep understanding of the local market, Ascensia remained poised to become a key player in Nigeria’s financial services industry.
The company is driven by a team of seasoned professionals with extensive experience in Nigeria’s resilient financial services sector.
Anchored on the core values of Trust, Resilience, Integrity, Creativity, and Empathy (TRICE), the company introduced a suite of innovative financial products.
These include personal loans of up to N5 million for self-employed professionals, with a repayment tenor of up to 12 months.
The company also provides SME loans of up to N10 million, specifically designed to support shop owners and small business operators engaged in trade of fast-moving consumer goods, with financing available for inventory and working capital needs.
The Ascensia PayEasy, a “Buy Now, Pay Later” solution, enables individuals and companies to acquire consumer goods or assets with a minimum 30 per cent deposit, and repay the balance over a six-month period.
For salaried employees in both the public and private sectors, the company offers PayDay Loans of up to ₦5 million, repayable over 12 months.
Through its Contract Finance offering, Ascensia supports vendors, suppliers, and contractors working with credible companies, NGOs, and public-sector agencies.
The product facilitates timely order fulfilment and improves liquidity by providing early access to funds through invoice discounting on confirmed invoices from approved counterparties.
The company also offers group loans for traders, artisans, farmers, and producers of fast-moving goods.
These loans are structured around group-based cross-guarantees, making financing accessible to individuals with strong cash flows but limited collateral. Eligible borrowers can access up to N3 million, repayable within 180 days.
E-Financial
Union Bank Champions Civil Service Reform at International Conference

Union Bank, one of Nigeria’s most enduring financial institutions, made a resounding statement of support for governance reform by partnering with the first-ever International Civil Service Conference, held on June 25–26, 2025, at Eagle Square Arena, Abuja.
With the theme “Rejuvenate, Innovate & Accelerate,” the conference brought together civil servants, development partners, and senior government officials—including President Bola Ahmed Tinubu—to strategize on the digital transformation and renewal of Nigeria’s public service.
Hosted by the Office of the Head of Civil Service of the Federation in collaboration with the Global Government Forum UK, the event focused on modernizing governance through inclusive leadership, adaptive institutions, and seamless service delivery—values that resonate with Union Bank’s digital-first approach.
Speaking at the event, Mannir Ringim, Executive Director for North and Public Sector, emphasized the Bank’s dedication to national development:
“At Union Bank, we believe in the transformative power of public-private partnerships. Our support for this landmark conference underscores our commitment to modernizing Nigeria’s civil service through innovative financial solutions that foster transparency and efficiency.”
Union Bank’s presence at this pioneering event not only underscores its forward-thinking ethos but also positions the Bank as a catalyst for progress at the intersection of finance and public administration.
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