Stakeholders in Nigeria’s financial services sector have called for stronger digital infrastructure, responsible adoption of artificial intelligence (AI) and deeper collaboration among regulators, fintechs and financial institutions to accelerate innovation and financial inclusion in the country’s payments ecosystem.

The call was made at the 2026 Digital Pay Expo held in Lagos, where industry leaders, regulators and payment experts examined the future of digital payments, cybersecurity, cross-border transactions and AI-driven financial services across Africa.

Speaking at the event, Director of the Payment System Supervision Department of the Central Bank of Nigeria (CBN), Dr. Rekiya Yusuf, represented by Deputy Director, Chika Ugwueze, said Nigeria’s payments landscape is evolving beyond digital adoption into a more advanced phase of digital transformation.

According to her, artificial intelligence is becoming a critical enabler of innovation, particularly in fraud prevention and expanding access to financial services for underserved populations.

“The goal is to make financial transactions seamless. AI is now driving innovation, helping in real-time fraud detection and supporting efforts to expand access to financial services,” she said.

Yusuf, however, noted that significant challenges remain in the areas of infrastructure, connectivity and inclusion, stressing that a resilient digital payments ecosystem requires sustained investments in technology, talent development and capacity building.

Also speaking, Managing Director of PalmPay Nigeria, Chika Nwosu, said trust, accessibility and financial empowerment are essential to enabling small and medium enterprises (SMEs) to participate effectively in the formal economy.

He noted that SMEs contribute about 40 per cent to Nigeria’s Gross Domestic Product (GDP) but continue to face challenges related to access to credit and efficient payment infrastructure.

Nwosu said financial inclusion should go beyond account opening and transaction processing to providing businesses with the tools needed for sustainable growth.
“SMEs contribute 40 per cent of the country’s GDP. For us at PalmPay, we do not just provide payment solutions; we also support businesses with financial tools that help them expand operations and create jobs,” he said.

He further stressed the importance of digital literacy, noting that broader understanding of digital financial tools and AI-powered solutions would help build trust and encourage wider adoption across the ecosystem.

Industry experts at the event agreed that the future of digital payments in Africa will depend on strengthening foundational elements such as infrastructure, cybersecurity, responsible AI deployment and regulatory collaboration.

The discussions reflected growing consensus that while innovation remains critical, sustainable growth in the payments industry will require investments in secure systems, consumer protection and inclusive financial services capable of reaching underserved populations.

For PalmPay, the event underscored the need for a payments ecosystem that is resilient, secure and capable of supporting economic growth at scale through technology-driven financial inclusion.

Founded in 2019, PalmPay has expanded its operations across emerging markets, providing digital financial services ranging from payments and savings to credit and merchant solutions, while supporting financial inclusion through smartphone financing and access to digital banking services.