The Central Bank of Nigeria (CBN) has introduced new market-structure rules that could prevent any single financial institution from dominating both consumer and merchant payments.
In a circular issued on Monday, the regulator disclosed that any licenced financial institution that controls more than 25% of the consumer-issuing market will be restricted to a maximum of 15% market share in merchant-acquiring activities.
The rule comes as banks and fintechs expand beyond their traditional niches to serve both consumers and merchants. The regulator’s new framework is designed to prevent any single institution from becoming the dominant gateway for cashless transactions, reducing concentration and systemic risk in the payments ecosystem.
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