The Central Bank of Nigeria (CBN) has introduced strict new market-structure rules designed to break up market concentration and stop any single financial institution from dominating the country’s multi-billion-dollar digital payments industry.
The Central Bank of Nigeria (CBN) has introduced strict new market-structure rules to stop any single financial institution from dominating both sides of the digital payments market. The new framework ensures that companies cannot simultaneously control the platforms consumers use to pay and the infrastructure merchants use to accept those payments.
This rule is a direct response to the changing landscape of Nigerian fintech and banking. In recent years, major digital payment companies including giants like Paystack, Flutterwave, and Moniepoint have expanded beyond their original niches, growing from merchant payment gateways into consumer-facing banking and wallet services. The CBN’s new policy aims to curb this cross-market expansion to reduce systemic risks and keep the ecosystem competitive.
According to Techcabal, the circular outlines a strict balancing rule based on a rolling 12-month period. If a licensed company (or a group of related corporate entities) controls more than 25% of the consumer issuing market, its share in the merchant acquiring market will be capped at a maximum of 15%. Conversely, any operator that captures more than 25% of the merchant acquiring market is barred from holding more than a 15% share of the consumer issuing market.
Consumer issuing includes tools that allow everyday users to spend money, such as bank accounts, payment cards, and digital wallets. Merchant acquiring refers to the business-facing side, including Point-of-Sale (PoS) services, payment gateways, and settlement systems.
Nigeria’s digital payments ecosystem has grown rapidly, processing a massive ₦1.2 quadrillion ($884.78 billion) in 2025. While this expansion has driven financial inclusion and innovation, the apex bank noted that the emergence of players with massive market presence across multiple areas creates dangerous operational dependencies.
This policy will require a significant shift in business strategy for several tier-1 banks and high-growth fintech companies that currently operate across both retail and commercial segments.
To ensure strict compliance, all affected financial institutions, payment service providers, and tech vendors must begin submitting detailed monthly market share returns directly to the apex bank. These reports will allow the regulator to track transaction volumes and market shares in real time.
By enforcing these limits, the regulator is choosing a fragmented, highly competitive market over one controlled by a few dominant tech gateways.
Affected financial institutions must submit monthly market share returns to help the central bank monitor compliance. Companies have until December 31, 2026, to adjust their business structures and meet the new limits.
