The Central Bank of Nigeria (CBN) has cautioned that the rapid growth of private digital payment platforms and stablecoins could threaten foreign exchange stability and intensify capital flow pressures in emerging economies.
Olayemi Cardoso, CBN Governor issued the warning during a plenary address at the G-24 Technical Group Meetings held in Abuja on Thursday.
He acknowledged that digital payments offer significant gains in financial inclusion and operational efficiency but warned that they also introduce structural vulnerabilities that require proactive regulatory oversight.
Cardoso said the expansion of private digital platforms and stablecoins raises concerns including:
- Currency substitution and weakened monetary transmission
- Increased FX volatility and capital flow pressures
- Growing systemic importance of non-bank payment providers
- Regulatory arbitrage and cross-border fragmentation
He warned that uncoordinated cross-border digital payment systems could entrench dominant currencies and platforms, reduce interoperability, increase transaction costs, and weaken the ability of Emerging Market and Developing Economies (EMDEs) to safeguard monetary sovereignty.
Cardoso stressed that stronger global regulatory alignment is essential to prevent fragmentation that could undermine exchange rate management and liquidity control.
In her remarks, Dr Iyabo Masha, Director of the G-24 Secretariat, said global growth remains uneven across regions despite isolated pockets of resilience.
She noted that while countries such as India are driving momentum in South Asia, other regions, including parts of Latin America, continue to face weak external demand and sluggish investment.
According to her, the broader pattern across developing regions reflects growth that lacks the depth needed for sustainable, job-rich transformation.
Nigeria has experienced a sharp rise in digital payment adoption in recent years as part of broader financial inclusion and payment modernisation efforts.
In October, the CBN disclosed that electronic payment transactions reached N384 trillion in July 2025, underscoring the scale of digital financial activity.
Meanwhile, the Nigeria Inter-Bank Settlement System (NIBSS) is exploring offline payment solutions to expand access to Nigerians with limited internet connectivity.
The rapid expansion of the digital payments ecosystem highlights both innovation gains and the macroeconomic risks regulators are now seeking to manage.
The Intergovernmental Group of Twenty-Four on International Monetary Affairs and Development (G-24) is a coalition of 29 developing countries that coordinates positions on global monetary, financial, and development issues.
Headquartered in Washington, D.C., the group holds ministerial-level meetings twice yearly alongside the IMF and World Bank gatherings and plays a strategic role in shaping international economic policy discussions affecting emerging economies.
Cardoso’s remarks signal that as digital finance accelerates, safeguarding foreign exchange stability and monetary sovereignty will remain a central concern for policymakers in Nigeria and across developing markets.
