The Central Bank of Nigeria (CBN) initiated a demonetisation process last year to encourage a shift to a cashless economy, and the policy led to an acute cash shortage in the country, causing businesses and individuals to shift to digital payment methods. While the policy forced the uptake of digital payments, it also exposed the inadequacies of the Nigerian digital payment infrastructure, with challenges such as failed transactions, fraud, and poor internet still being faced. Despite this, businesses like Duplo, a Nigerian B2B payment platform, have witnessed a significant increase in virtual account usage since the policy was initiated. Transactions with the Nigerian central bank digital currency, eNaira, also increased by 63% during this period. However, some businesses still lack trust in digital payments due to concerns about security, which calls for more investment in secure platforms and compliance by payment companies. Increased strategic engagement between regulators and fintech operators can also strengthen the security of the digital payment infrastructure in Nigeria.

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