The Central Bank of Nigeria (CBN) has introduced new regulations aimed at preventing any single bank or fintech company from dominating Nigeria’s fast-growing Point-of-Sale (PoS) and digital payments ecosystem.
The new policy could reshape competition among major players, including OPay, Moniepoint, PalmPay, Paystack, Flutterwave and traditional banks that have expanded their footprints across consumer and merchant payments.
In a circular released on June 15, 2026, the apex bank announced that any licensed financial institution controlling more than 25 per cent of the consumer-issuing market will be restricted to a maximum of 15 per cent market share in merchant-acquiring activities.
Likewise, firms with dominant positions in merchant acquiring will be barred from holding excessive influence in consumer payment services.
According to the CBN, the move is aimed at reducing concentration risk and preventing any operator from becoming the single gateway for Nigeria’s cashless economy.
“Any licensed financial institution engaged in merchant acquiring activities, whether individually or as part of a group of related entities, that holds more than 25 per cent market share in merchant acquiring activities within any rolling 12-month period shall not hold more than 15 per cent market share in consumer issuing activities during the same period,” the CBN stated.
Consumer issuing covers products and services used by customers to make payments, including bank accounts, debit cards, digital wallets and other payment instruments.
Merchant acquiring refers to the infrastructure that enables businesses to receive payments, including PoS terminals, payment gateways and merchant settlement systems.
The new restrictions will take effect from December 31, 2026, and are expected to affect fintech firms that have rapidly expanded from merchant services into digital banking and consumer finance.
Major operators such as OPay, Moniepoint, PalmPay, Paystack and Flutterwave are expected to come under increased scrutiny as competition in the sector intensifies.
Traditional banks are also expected to be affected if they seek to dominate merchant acquiring while maintaining strong positions in retail banking.
The CBN said the framework was introduced to address growing concerns over market concentration, operational dependence and the emergence of dominant operators across critical payment channels.
The restrictions will also apply to groups of related entities operating under common ownership or control, preventing firms from bypassing the rules through subsidiaries.
To ensure compliance, all regulated institutions will be required to submit monthly market-share reports based on CBN-approved templates.
Beyond market-share restrictions, the CBN is introducing stricter disclosure requirements on beneficial ownership and encouraging banks and fintech firms to host critical payment infrastructure on local cloud systems.
The reforms signal the regulator’s determination to build a more competitive, secure and balanced payments ecosystem as Nigeria’s digital payments industry, which processed more than ₦1.2 quadrillion in transactions in 2025, continues to expand rapidly.
The CBN warned that institutions that violate the new rules could face supervisory sanctions in line with existing laws, regulations and guidelines.
