The Central Bank of Nigeria’s ambition to transform its payment ecosystem through biometric-driven and “invisible” transactions may redefine how millions of citizens pay for goods and services, but the bank has warned that the country’s preparedness on data privacy, identity management and consumer protection will determine whether the initiative succeeds.
This was highlighted in the Nigeria Payments System Vision 2028, a strategic roadmap designed to build a secure, innovative and inclusive payments ecosystem.
Recall that the bank recently launched the Payments System Vision 2028 to build on Nigeria’s progress in digital payments and provide a roadmap for developing a payment ecosystem that is secure, resilient, inclusive, and globally competitive.
The Governor of the Central Bank of Nigeria, Mr Olayemi Cardoso, at the event, said an efficient payment system remains one of the fastest ways to lift millions of Nigerians out of poverty, as the apex bank unveiled the Nigeria Payments System Vision 2028.
According to him, “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.”
An excerpt of the newly released document analysed by our correspondent on Wednesday revealed that this will be for certain transactions such as transport fares, utility bills, and subscription services.
The report noted that biometric authentication could also be deployed at agent locations, Point-of-Sale terminals, micro-Automated Teller Machine stands and conventional Automated Teller Machine stands, where fingerprints or other biometric identifiers may replace or complement PINs.
It stated that such arrangements could prove particularly beneficial for individuals who face challenges with literacy or remembering card credentials.
Under the sub-theme, “Enabling Seamless Biometric-Driven and Invisible Payments,” the document proposes a future where Nigerians can authorise transactions using fingerprints, facial recognition, iris scans or other unique biological traits, reducing reliance on passwords, PINs and one-time passcodes.
The framework envisions a payment landscape where commuters board buses and trains with a simple tap, utility bills are settled automatically with prior approval, and customers complete purchases without queuing at checkout counters.
According to the document, “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 aim is to make payments faster, simpler, and more secure, while keeping individuals in control of consent, privacy, and cost.
“Biometric-driven payments can power a range of experiences: a) Everyday taps on phones, cards, and wearables at transit gates and retail checkouts. b) “Invisible” or background payments where a user has pre-approved a safe pattern (e.g., transit, subscriptions, utility bills) and still receives clear alerts and receipts. c) Assisted transactions at agents, POS/micro ATMs, and ATMs, where a biometric can replace or reinforce a PIN; especially helpful where literacy or card/PIN management is a barrier. d) Government-to-Person disbursements, fee payments and targeted subsidies, including offline options in low-connectivity areas.”
It explained that two major models would drive adoption. The first is on-device verification, where biometric information remains stored on a customer’s phone, card or wearable device and is verified locally.
The second is server-side or terminal verification, where biometric templates are matched through trusted systems or payment terminals, enabling transactions across multiple devices and locations.
However, the vision document acknowledged that broader deployment of the latter approach would require “stronger privacy, security and governance controls, including clear consent, data minimisation, secure storage, retention and deletion rules, and fast redress mechanisms.”
The report noted that Nigeria’s existing legal framework already places significant obligations on organisations processing biometric information. “Legal and privacy expectations are high,” the document stated.
“Nigeria’s data-protection law treats biometric data as sensitive. That means organisations must obtain clear consent, collect only what is necessary, keep data secure, report any breaches, and complete a Data Protection Impact Assessment before launching higher-risk processing.”
The emphasis on privacy comes amid growing public concern over how personal information is collected, stored and shared across digital platforms.
While biometric authentication could reduce certain forms of fraud associated with stolen cards and compromised passwords, the consequences of biometric data breaches could be far-reaching because fingerprints and facial patterns cannot simply be replaced like conventional credentials.
The payments vision acknowledged these concerns. “People worry about hidden charges and misuse of biometrics,” the document noted. “Programmes need to prove they are user-centred by providing simple consent at enrolment, clear receipts for every transaction, advance alerts before any recurring debit, and easy dispute and reversal routes with clear timelines.”
The document also highlighted security threats specific to biometric systems, warning that inadequate safeguards could expose consumers to new forms of fraud.
“If anti-spoofing is weak, attackers can use fake fingerprints or face images to impersonate customers, especially at agent locations and cash-out points,” it stated. “Experience from other markets shows that cloned biometrics and transactions without proper consent can occur when controls and grievance handling are weak. Nigeria needs to plan for these risks from the start.”
Beyond privacy and fraud concerns, the report identified infrastructure limitations as another major barrier to nationwide adoption. It noted that although many Nigerians live within areas covered by mobile networks, a significant proportion do not regularly use mobile internet because of affordability constraints, limited digital literacy and device limitations.
The document added that USSD platforms still account for a substantial share of financial transactions among low-data users, although service disruptions linked to commercial disputes and technical downtime have affected reliability in recent years.
According to the roadmap, the country’s current payment environment is characterised by fragmented data systems and varying device capabilities, leading to inconsistencies in user experience and risk management.
While biometric authentication already exists within the banking system, its application remains limited. “Biometric authentication is available but limited, primarily through biometric ATMs deployed in selected branches rather than at scale,” the report observed.
It added that consumers had become increasingly conscious of privacy rights, demanding greater transparency regarding the use of their personal information.
To address these concerns, the vision proposes that Nigeria prioritise on-device biometric authentication, supported by robust consent frameworks that allow users to suspend, modify or cancel recurring payment arrangements.
The strategy also seeks stronger alignment between the Bank Verification Number and National Identification Number databases to reduce verification failures and improve transaction integrity.
According to the document, Point-of-Sale terminals at merchant outlets and agent locations are expected to become the first major touchpoints for biometric payments.
Over time, these capabilities could expand to contactless systems, facial recognition solutions, wearable devices and small-format checkout-free retail environments where adequate safeguards exist.
The roadmap further recommends the introduction of public scorecards to measure service quality, complaint resolution timelines and other consumer protection indicators across payment providers.
The report acknowledged that foundational identity challenges remain. “Nigeria’s identity rails have advanced with the BVN and the National Identification Number,” it stated.
“To support biometric payments at scale, further work is required to address residual misalignments across systems, including incomplete linkages and occasional record inconsistencies, that can contribute to verification failures and service friction.”
It also warned that intermittent disruptions across identity and telecommunications infrastructure could undermine public confidence.
“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 document noted. “These breaks manifest as verification failures at point of service, repeated re-enrolments and user attrition.”
To improve readiness, the vision outlined plans for biometric-enabled PoS terminals and micro-ATMs equipped with liveness detection capabilities, agent training programmes, standardised device certification requirements and offline transaction policies for low-connectivity environments.
It also proposed a national device programme involving locally assembled smartphones and payment devices with preloaded software development kits, wallet applications and consent management tools.
The document set ambitious targets for implementation, including achieving at least 90 per cent BVN-NIN linkage in pilot corridors, maintaining identity interface availability of 99.5 per cent, recording authentication success rates above 98 per cent and ensuring that receipts are delivered within minutes of completed transactions.
Under its long-term vision spanning the next five years, Nigeria aims to achieve widespread deployment of biometric-enabled PoS terminals while allowing ATMs, wearables and invisible payment channels to complement the ecosystem.
Despite the promise of greater convenience and financial inclusion, analysts say public trust will remain the decisive factor. The success of biometric payments, they argue, will depend not only on technological innovation but also on the ability of regulators, financial institutions and service providers to convince Nigerians that their most sensitive personal data will be protected.
As the country moves towards a future where paying with a fingerprint or facial scan could become commonplace, the challenge may no longer be whether the technology works, but whether citizens are willing to trust the systems behind it.
Nigeria has consistently expanded its digital payments ecosystem over the last decade through initiatives such as instant payments, direct debits, the Bank Verification Number framework and USSD banking. The PSV 2028 represents the next phase of that evolution, focusing on frictionless and largely automated payment experiences.
However, unlike previous innovations, biometric payments involve the processing of highly sensitive personal data, making privacy, transparency and consumer protection central to their success. The proposed framework therefore seeks to balance innovation with safeguards that preserve public confidence in the financial system.
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