The Managing Director and Chief Executive Officer of Financial Derivatives Company (FDC), Bismarck Rewane, has urged the Federal Government to extend the recently approved salary increase for military personnel to other security agencies, including the Nigeria Police Force and the Nigeria Security and Civil Defence Corps (NSCDC).
Rewane said excluding other security agencies from the wage review could create disparities within Nigeria’s security system and affect the morale of personnel.
He made the call during the August edition of the Lagos Business School (LBS) Breakfast Session, where he also discussed developments in Nigeria’s digital payments sector.
According to Rewane, the Federal Government’s approval of a new salary structure for the Nigerian Army provides an 80 per cent increase for lower-ranking personnel, 50 per cent for officers from warrant officers to colonels, and 30 per cent for officers from colonels to generals. The total cost of the review is estimated at N924 billion.
While acknowledging the importance of improving the welfare of military personnel, Rewane warned that the salary increase could have wider effects on both the public and private sectors.
He explained that higher salaries would likely influence wage levels across the public service and could also put pressure on private companies to increase their employees’ compensation.
“There must be a compensating review of all other security agencies and armed forces, including the Police and Civil Defence,” he said.
However, Rewane also warned that extending the salary increase to other security agencies would significantly increase government’s recurrent expenditure. He urged policymakers to balance improved welfare for security personnel with measures aimed at increasing productivity and government revenue.
The economist further cautioned that raising wages without a corresponding increase in productivity could add to inflationary pressures. He estimated that the wage adjustment could contribute between two and three percentage points to inflation.
Meanwhile, Rewane disclosed that the value of electronic payment transactions in Nigeria rose by 5.54 per cent month-on-month to N122.98 trillion in July 2026, compared with N116.52 trillion in June.
He projected that electronic payment transactions would rise further to N126.70 trillion in August, driven by increased seasonal spending and the continued adoption of digital payment platforms.
The Nigeria Instant Payment (NIP) platform remained the largest contributor, with transaction values increasing by 4.89 per cent from N104.48 trillion in June to N109.59 trillion in July.
The Nigeria Electronic Funds Transfer (NEFT) platform recorded the fastest growth among the major payment channels, rising by 18.03 per cent from N5.49 trillion to N6.48 trillion. Point-of-Sale (PoS) transaction values also increased by 5.56 per cent to N6.65 trillion, while cheque transactions rose by 4.35 per cent to N264 billion.
Looking ahead, FDC expects electronic payment activity to remain strong in August, with NIP transactions projected at N112.21 trillion and PoS transactions expected to increase to N7.97 trillion. NEFT transactions, however, are projected to moderate slightly to N6.29 trillion.
The continued growth reflects Nigeria’s steady shift towards a more digital and cashless economy. The Central Bank of Nigeria’s 2025 Annual Report also recorded significant growth in electronic payments, with transaction value increasing by 26.07 per cent to N3,458.77 trillion, while transaction volume rose by 2.62 per cent to 47.88 billion transactions.
The CBN attributed the growth to increased consumer adoption of digital payment channels, the expansion of e-commerce and improvements in payment infrastructure.
At the recent launch of the Payments System Vision 2028, CBN Governor Olayemi Cardoso reaffirmed the apex bank’s commitment to achieving 95 per cent financial inclusion and developing a faster, more efficient digital payments ecosystem in Nigeria.
