The Central Bank of Nigeria (CBN) has introduced new market structure rules aimed at preventing individual financial institutions from exerting excessive dominance across key segments of the electronic payments value chain.
Under the newly unveiled regulatory framework, any licensed financial institution engaged in consumer issuing activities that controls more than 25 percent of the market share over a rolling 12-month period will be prohibited from holding more than 15 percent market share in merchant acquiring during the same timeframe.
Similarly, institutions that command more than 25 percent market share in merchant acquiring activities will not be permitted to hold more than 15 percent market share in consumer issuing.
The central bank emphasized that it had observed significant structural developments within the Nigerian payments ecosystem, characterized by rapid growth in electronic transactions, increasing adoption of digital financial services, and the emergence of operators with substantial market presence.
While acknowledging that these developments have supported innovation, efficiency, and broader financial inclusion, the regulator noted that they have also raised valid concerns regarding overall market stability.
The apex bank in a circular dated June 15, 2026, which was signed by Dr. Rakiya Yusuf, the Director of the Payments System Supervision Department at the CBN clarified that these restrictions will apply strictly whether the operations are carried out directly by an institution or through related entities within the same corporate group.
The apex bamk noted that the new provisions are targeted at reducing concentration risks and preventing dominant players from exercising excessive influence across multiple segments of the payments landscape.
The newly introduced measures effectively serve as structural safeguards intended to foster healthy competition, create room for smaller operators to thrive, and drastically reduce the systemic risks traditionally associated with excessive market concentration.
To facilitate rigorous monitoring, the CBN has directed all regulated entities to submit monthly market share returns based on prescribed reporting templates and timelines.
The apex bank also ordered all affected institutions to fully align their operations with the new market structure requirements by December 31, 2026.