Mr. Yemi Cardoso, the Governor of the Central Bank of Nigeria (CBN), has affirmed that cross-border payments are fast becoming the backbone of the global monetary and financial system
Cardoso made the remark during his plenary address on Thursday at the G-24 Technical Group Meetings (TGM) themed “Mobilising Finance for Sustainable, Inclusive, and Job-rich Transformation.” in Abuja.
His presentation, titled “Digital Cross-Border Payments, Global Finance, and Economic Transformation – Opportunities and Risks,” highlighted the growing importance of efficient international payment systems for developing economies.
He said inefficiencies in cross-border payment systems translate directly into higher remittance costs, expensive foreign exchange transactions, fragmented settlement processes and barriers that limit micro, small and medium enterprises (MSMEs) from participating in global trade.
According to him, improving cross-border payments is not merely a technical adjustment but a macroeconomic and development priority, as the channels through which capital, remittances and trade flows move now form a critical part of the global financial stability architecture.
Cardoso noted that cross-border payments remain too slow, costly and fragmented, particularly for developing economies. He said global remittance corridors still cost over six per cent, with settlement delays lasting several days, while compliance burdens continue to exclude many MSMEs from global opportunities.
The CBN governor said digital innovation presents a historic opportunity to address these challenges. He pointed to modern payment infrastructure, instant payment systems, interoperable digital platforms, distributed ledger technology and robust digital identity frameworks as tools capable of reducing transaction costs, shortening settlement timelines and improving transparency and compliance.
Such reforms, he added, would expand access for households and MSMEs traditionally excluded from the formal financial system. Interoperable digital systems, if designed with resilience and strong governance, could also strengthen monetary policy transmission, deepen financial inclusion and reduce informality.
He cited global examples to demonstrate progress in digital cross-border payments. India’s Unified Payments Interface, operated by the National Payments Corporation of India, has been linked with Singapore and the United Arab Emirates, significantly reducing remittance costs and enabling real-time settlement. In Brazil, the instant payment platform developed by the Central Bank of Brazil has been adopted by more than 70 per cent of adults within two years and is being integrated into cross-border pilots across Latin America.
Cardoso said these examples show what is achievable for G-24 countries, including lower transaction costs, stronger small and medium-sized enterprises, improved liquidity, job creation and deeper regional integration.
He said Nigeria’s experience demonstrates that such potential can be realised through sustained policy action. The CBN, he said, has modernised its regulatory and supervisory frameworks to keep pace with the evolving digital financial landscape, strengthened oversight of payment infrastructure providers, enhanced agent banking regulations to address Anti-Money Laundering and Countering the Financing of Terrorism risks, and improved interoperability across payment channels.
Building on these reforms, he disclosed that the apex bank is concluding work on a new Payment System Vision 2028, developed in collaboration with industry stakeholders and focused on boosting innovation, strengthening system resilience and advancing financial inclusion. Improving Nigeria’s cross-border payments environment, he said, remains central to the agenda.
Also speaking, Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, called for stronger unity among countries of the Global South in response to growing fragility in global economic growth.
Edun said the global economic environment is characterised by profound uncertainty, systemic vulnerabilities and rising economic fragmentation, which have negatively affected trade flows and debt sustainability. He warned that tariffs, sanctions, investment restrictions and strategic decoupling could trigger global crises, citing findings from the 2026 Global Risk Report.
According to him, deepening fragmentation could reduce global output by up to two percentage points and shrink global trade by more than two per cent, with developing and emerging markets bearing the brunt. He noted that although Africa accounts for about 17 per cent of the world’s population, it contributes only around three per cent of global trade and roughly 2.5 per cent of global output, adding that further fragmentation would worsen the imbalance.
Earlier, Dr. Iyabo Masha, Director and Head of Secretariat of the Intergovernmental Group of the G-24, said the global economy is witnessing measured resilience but constrained ambition. She noted that Emerging Markets and Developing Economies face tightening policy space amid rising uncertainty.
Masha said while supply-side disruptions have eased and inflation has moderated in several advanced economies, resilience should not be mistaken for robustness. She added that although global financial conditions have eased compared to periods of intense tightening, borrowing costs and debt-service burdens remain elevated for many developing countries, with spreads still above pre-pandemic levels.