Banking
The Transformative Benefits of Nigeria Going Cardless
By Uzoma Dozie
Thanks to changing lifestyles and the ubiquity of mobile phones, the number of people across Nigeria using mobile banking is rising exponentially. This is creating the opportunity to turn my vision of a cardless Nigeria into a reality.
By 2020 there will be 200 million smartphone connections in Africa (Guardian). In Nigeria, there are more mobile phone lines than adults, 16 smartphones are sold every minute and 24% of people already have access to mobile broadband (GSMA).
Mobile technology, mobile payments, and therefore cardless payments are already becoming a way of life for millions of people. Digital banking technology is moving beyond payments, as it is now possible to open a bank account, create savings plans and conduct other transactions using a mobile device.
Traditionally, the progression is as follows: cash-using customers become cashless as they switch to using cards, and then become cardless as they switch to using their mobile for all financial transactions. However, technological developments – in particular the growing use of mobile – have presented Nigeria with a unique opportunity to leapfrog straight from cash to cardless.
There are however great challenges to overcome. In Nigeria, 80% of payments are still made in cash. Diamond Bank is at the forefront of modernising payments with 89% of our transactions now cashless – up from 67% in July 2016. Steps are being taken in the right direction, and technological innovation can really propel this transformation forward.
Going cardless is well suited to the realities of Nigeria’s economy and geography, with over 50% of the population living in rural communities (World Bank) where infrastructure is often minimal. Customers are more likely to have access to a mobile phone than proximity to a physical branch, meaning electronic payments are better suited to the population.
The leap to a cardless society will have life-changing ramifications for rural Nigerians. For example, in Diamond Bank’s partnership with MTN, over nine million customers have opened a bank account on their mobile phone simply by dialling a shortcode. Opening an account no longer requires a branch – it only needs a phone signal, which covers 99% of Nigeria.
Cardless banking will also enable these communities to become more economically active. With access to finance at their fingertips, mobile banking will allow individuals and SMEs to unlock their full financial potential. It will promote financial inclusion of a population that are typically under-banked or completely unbanked. It will also act as a springboard for them undertaking further financial transactions, boosting financial literacy.
Using cardlesss technology to reach remote communities should be a key priority for Nigeria’s banks. Doing so is a win-win situation; not only does it ensure more people are banked, it ensures more people are part of the formal economy. This will create jobs and revenue – necessary for the development of healthcare, education and some other key national infrastructure.
Going cardless will also give people access to financial products on-the-go. This improves the customer experience, as in a cardless economy people can make a range of payments anywhere and on a 24/7 basis, spending less time at ATMs and branches and more time generating commerce or with families.
Further down the line, you might ask: what comes after Nigeria goes cardless? We see the future of financial services as increasingly digitalised. Touch fingerprint recognition, as used on the Diamond Mobile app, and developments with retina technology have the potential to make banking easier for customers. Fraud could even be pre-empted, as the technology and service becomes more personalised to the individual or business. We are even exploring the potential role of virtual reality in our branches.
Nigeria is becoming more mobile and digital. It is now up to the financial services sector to respond to this technological revolution and challenge the norms to make way for a truly cardless future. Banks, supported by the Fintech industry, have the capacity to drive this enormous change.
I believe a cardless economy can transform Nigeria from the bottom up.
Uzoma Dozie is the CEO of Diamond Bank Plc
By Adedapo Adesanya
The Senate has demanded detailed explanation from the Central Bank of Nigeria (CBN) over the alleged non-remittance of N1.44 trillion in operating surplus.
The Senate Committee on Banking, Insurance and Other Financial Institutions, chaired by Mr Tokunbo Abiru, opened its statutory briefing with a firm call for transparency at the apex bank, noting that the Auditor-General’s query on the unremitted funds required a full, clear and documented response, insisting that public trust in monetary governance depended on strict accountability.
While acknowledging the CBN’s achievements in stabilising the foreign exchange market and reducing inflation, Mr Abiru underscored that such progress must be accompanied by institutional responsibility.
He stated the Senate expected the CBN to explain the circumstances surrounding the query, outline corrective steps taken and reveal safeguards against future lapses.
This came as the Governor of the central bank, Mr Yemi Cardoso, appeared before the senate committee and offered an extensive review of economic conditions, asserting that Nigeria was experiencing renewed macroeconomic stability across major indicators.
Mr Cardoso attributed the progress to bold monetary reforms, foreign-exchange liberalisation and disciplined liquidity management implemented since mid-2025.
According to him, headline inflation had declined for seven consecutive months, from 34.6 per cent in November 2024 to 16.05 per cent in October 2025, marking the steepest and longest disinflation trend in over a decade.
Food inflation accruing to him also slowed to 13.12 per cent, supported by improved supply conditions and exchange-rate predictability.
The CBN governor described the foreign-exchange market as fundamentally transformed, adding that speculative attacks and arbitrage opportunities had largely disappeared.
According to him, the premium between the official and parallel markets had fallen to below two per cent, compared to over 60 per cent a year earlier. As of November 26, the naira traded at N1,442.92 per dollar at the Nigerian Foreign Exchange Market, stronger than the N1,551 average recorded in the first half of 2025.
He also announced a sharp rise in external reserves to $46.7 billion, the highest in nearly seven years and sufficient to cover over ten months of imports.
Diaspora remittances, he noted, had tripled to about $600 million monthly, while foreign capital inflows reached $20.98 billion in the first ten months of 2025, 70 per cent higher than in 2024 and more than four times the 2023 figure.
Cardoso further confirmed that the CBN had fully cleared the $7 billion verified FX backlog, restoring investor confidence and strengthening Nigeria’s balance-of-payments position.
On banking-sector stability, he reported that recapitalisation efforts were progressing smoothly. Twenty-seven banks had already raised new capital, with sixteen meeting or surpassing the new regulatory thresholds ahead of the March 31, 2026 deadline, highlighting improvements in ATM cash availability, digital-payments oversight and cybersecurity compliance.
Despite the positive indicators, the Senate sought clarity on several policy decisions.
Mr Abiru pressed for explanations on the sustained 45 per cent Cash Reserve Ratio (CRR), the 75 per cent CRR applied to non-Treasury Single Account public-sector deposits, FX forward settlements, mutilated naira notes in circulation, excessive bank charges, failed electronic transactions and the compliance of CBN subsidiaries with parliamentary oversight.
He also requested an update on the activities of the Financial Services Regulatory Coordinating Committee, arguing that stronger inter-agency cooperation was necessary to maintain public confidence.
The session later moved into a closed-door meeting.
By Modupe Gbadeyanka
About N3.6 trillion has been repaid to the Central Bank of Nigeria (CBN) by the Asset Management Corporation of Nigeria (AMCON) since its inception in 2010.
This information was revealed by the chief executive of AMCON, Mr Gbenga Alade, during a media parley to update the press on the activities of the agency.
Mr Alade said at the moment, the organisation still owes the central bank about N3 trillion for toxic assets of banks in the country.
He praised the organisation for its asset recovery drive, stressing that when compared with others across the world, Nigeria has done well.
“It is important to stress that the corporation has done tremendously well, especially when compared to other notable government-owned Asset Management Corporations around the world.
“Based on the balance at purchase, AMCON outperformed other Asset Management Corporations all over the world by achieving over 87 per cent in recoveries despite the unique challenges associated with debt recovery in Nigeria.
“The Malaysian Danaharta, which is adjudged one of the best performing Asset Management Corporation’s, only achieved 58 per cent. The Chinese Asset Management Corporation, despite its stricter laws, achieved just 33 per cent.
“Only the Korean Asset Management Corporation (KAMCO), South Korea, has achieved more recoveries than AMCON, with about 100 per cent. This was due to their brute force with which they chased the obligors.
“Despite KAMCO’s recovery records, the agency is still operational to date with slight realignments in its mandate.
“Other noted Asset Management Corporations that have transitioned into a perpetual institution of the various governments include, China Asset Management Company, Federal Deposit Insurance Corporation (FDIC) USA, and KFW Germany.
“So, gentlemen, without sounding immodest, AMCON has done well, and we will not relent until all the outstanding debts are fully realized,” Mr Alade stated.
On the financial performance of AMCON, he said last year, the firm posted a revenue of N156.25 billion and operating expenses of N29.04 billion, while for the 2025 fiscal year should be a revenue of N215.15 billion and operating expenses of N29.06 billion.
By Modupe Gbadeyanka
One of the non-interest banks in Nigeria, The Alternative Bank (AltBank), has opened a new branch in Effurun, Delta State.
The new office will serve the Edo-Delta region and provide purposeful banking and real financial empowerment for individuals, entrepreneurs, and businesses, a statement from the firm stated.
The lender disclosed that the Effurun branch is a bold move in its mission to reshape banking in Nigeria.
The launch was graced by key dignitaries, including the Ovie of Uvwie Kingdom, Emmanuel Ekemejewa Sideso Abe I; the Chairman of Uvwie Local Government, Anthony O. Ofoni, represented his vice, Andrew Agagbo; and the Special Adviser to the Governor of Delta State on Community Development, Mr Ernest Airoboyi; amongst others.
The Divisional Head for South at The Alternative Bank, Mr Chukwuemeka Agada, emphasised the institution’s commitment to Warri and its surrounding communities.
“By establishing a presence here, we are initiating a transformation in the way banking serves the people of Delta. Our purpose-driven approach ensures that customers’ financial goals are not just met but exceeded,” he stated.
“This branch represents our pledge to empower Warri’s dynamic businesses and families, providing them with the tools to grow without compromise,” Mr Agada added.
“We understand the heartbeat of this community, and we are excited to integrate our bank into the fabric of this dynamic region,” he stated further.
On his part, the representative of the Ovie, Mr Samuel Eshenake, challenged the bank to facilitate development and employment within the Effurun community.
The Regional Head for Edo/Delta at The Alternative Bank, Mr Akanni Owolabi, embraced this challenge, pledging that the bank will work sustainably to drive local commerce.
“At The Alternative Bank, we are committed to being an active partner in the development of Effurun. We see this branch as a catalyst for creating opportunities, driving employment, and supporting the growth of local businesses.
“Our mission is to empower this community, ensuring that every step forward is one of progress, prosperity, and shared success.”
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