The Central Bank of Nigeria (CBN) is charting a new course for the country’s payment ecosystem with plans to introduce biometric-driven and “invisible” payments, a move that could fundamentally change how millions of Nigerians pay for everyday services.
However, the apex bank has acknowledged that the success of the initiative will largely depend on the country’s ability to address longstanding concerns around data privacy, identity management, infrastructure reliability and consumer protection.
The strategy forms part of the Nigeria Payments System Vision (PSV) 2028, a newly launched roadmap aimed at creating a payment ecosystem that is secure, resilient, inclusive and globally competitive.
Speaking during the unveiling of the framework, CBN Governor Olayemi Cardoso described an efficient payment system as a powerful tool for economic empowerment and poverty reduction.
“One of the fastest ways to take a large number of people out of poverty is through an efficient payments system. It’s through an efficient payment system. So let us not look at it lightly,” Cardoso said.
At the heart of the vision is a future where transactions become faster and less dependent on traditional methods such as passwords, PINs and one-time passcodes. Instead, Nigerians could authorise payments using fingerprints, facial recognition, iris scans and other unique biological identifiers.
The roadmap also introduces the concept of “invisible payments,” where transactions occur automatically after a user has granted prior approval.
Under this model, commuters could pay transport fares without manual transactions, utility bills could be settled automatically, and subscription services could renew seamlessly while customers continue to receive notifications and transaction receipts.
According to the document, biometric technology could also be deployed at agent banking locations, Point-of-Sale (PoS) terminals, micro-ATMs and conventional ATM machines, particularly benefiting individuals who struggle with literacy challenges or remembering PINs and card details.
“Biometric driven payments are payment experiences where a person confirms a transaction using a unique trait such as a fingerprint, face, iris, or palm/vein pattern instead of (or in addition to) traditional methods like entering a PIN or one-time code,” the document stated.
The CBN said the objective is to simplify transactions while ensuring security, convenience and user control over privacy and consent.
The framework proposes two approaches for implementing biometric payments. The first is on-device verification, where biometric data remains stored on a user’s smartphone, card or wearable device and is authenticated locally.
The second is server side or terminal verification, where biometric information is processed through centralised systems or payment terminals, allowing transactions across multiple devices and service locations.
However, the latter model comes with greater privacy and security demands.
The document emphasised that broader adoption would require strict governance measures, including clear consent procedures, limited data collection practices, secure storage protocols and efficient mechanisms for handling complaints and disputes.
“Legal and privacy expectations are high,” the report noted, adding that Nigeria’s data protection laws already classify biometric information as sensitive personal data.
As a result, organisations will be required to obtain explicit user consent, collect only essential information, secure stored data, report breaches and conduct Data Protection Impact Assessments before introducing high-risk processing systems.
The report also acknowledged growing public anxiety over how organisations collect, store and share personal information.
While biometric systems could reduce fraud linked to stolen cards and compromised passwords, experts warn that biometric breaches could be far more damaging because fingerprints and facial data cannot simply be replaced.
Recognising this challenge, the roadmap places significant emphasis on transparency and consumer rights.
“People worry about hidden charges and misuse of biometrics,” the document stated.
It added that users must be given clear information during enrolment, instant transaction receipts, advance notifications before recurring debits and accessible channels for resolving disputes within defined timelines.
The CBN also highlighted emerging security risks associated with biometric technology.
“If anti spoofing is weak, attackers can use fake fingerprints or face images to impersonate customers, especially at agent locations and cash out points,” the report warned.
It added that experiences in other countries have shown that cloned biometrics and unauthorised transactions can occur when security controls and complaint resolution mechanisms are inadequate.
Beyond security concerns, infrastructure deficiencies remain another major obstacle.
Although mobile network coverage has expanded significantly across Nigeria, many citizens still do not actively use mobile internet due to affordability challenges, limited digital literacy and device constraints.
The report further noted that USSD services continue to play a vital role for low-data users, despite disruptions caused by technical issues and commercial disagreements in recent years.
The existing payment ecosystem, according to the document, is also hampered by fragmented databases and inconsistencies across devices, creating friction in user experiences and increasing operational risks.
While biometric authentication already exists within some banking services, its adoption remains relatively limited.
“Biometric authentication is available but limited, primarily through biometric ATMs deployed in selected branches rather than at scale,” the report observed.
To overcome these limitations, the roadmap proposes stronger integration between the Bank Verification Number (BVN) and National Identification Number (NIN) databases to improve identity verification and reduce transaction failures.
The strategy also prioritises on-device biometric authentication and seeks to give users greater control over recurring payment arrangements, including the ability to modify, suspend or cancel them when necessary.
According to the plan, PoS terminals at merchant outlets and agent banking locations are expected to become the primary entry points for biometric transactions before expansion into contactless payments, facial recognition systems, wearable technology and checkout-free retail environments.
The framework also recommends introducing public scorecards that will assess service quality, complaint resolution timelines and consumer protection performance across payment providers.
However, the report admitted that identity management challenges persist.
“Nigeria’s identity rails have advanced with the BVN and the National Identification Number. To support biometric payments at scale, further work is required to address residual misalignments across systems,” it stated.
It further warned that disruptions involving identity databases and telecommunications systems could weaken public confidence in the initiative.
“Intermittent outages, inconsistent synchronisation between NIN, BVN and telco KYC systems, and incomplete BVN linkages across accounts create operational friction for biometric-dependent flows,” the report said.
As part of implementation efforts, the CBN intends to deploy biometric enabled PoS terminals and micro-ATMs equipped with liveness detection technology, establish agent training programmes and introduce standardised device certification requirements.
The roadmap also proposes a national device programme involving locally assembled smartphones and payment devices preloaded with digital wallet applications, software development kits and consent management tools.
Among its key performance targets are achieving at least 90 per cent BVN-NIN linkage in pilot areas, maintaining identity infrastructure availability of 99.5 per cent and recording authentication success rates above 98 per cent.
Over the next five years, the CBN envisions a payment ecosystem where biometric authentication becomes commonplace and invisible payment channels seamlessly complement existing systems.
Still, experts say technology alone will not determine the outcome.
Ultimately, the success of the initiative will depend on whether regulators, financial institutions and service providers can earn the trust of Nigerians and assure them that their most sensitive personal information will remain protected.
While Nigeria has steadily expanded its digital payment landscape through innovations such as instant payments, USSD banking, direct debits and the Bank Verification Number system, PSV 2028 represents a more ambitious leap toward automated, frictionless transactions.
Unlike previous payment innovations, however, biometric payments place privacy, transparency and consumer protection at the centre of the conversation, making public confidence perhaps the most important currency of all.
