When it comes to cardoso says cross-border payments too slow, costly for developing economies, olayemi Cardoso, the Governor Of The Central Bank of Nigeria (CBN), has voiced serious concerns regarding the inefficiencies surrounding cross-border payments that hinder the economic participation of developing nations. Speaking on Thursday during the G-24 Technical Group Meetings in Abuja, Cardoso highlighted that excessive costs and prolonged settlement times are effectively excluding millions from global finance and trade, urging for a fundamental reform of the system.
High Costs and Slow Settlements
Cardoso emphasized that the current state of cross-border payments is unsustainable for emerging and developing economies. He noted that the average cost of remittance corridors exceeds 6.0 percent, which is a significant burden for low-income households and small businesses. The delays in transaction settlements can often stretch over several days, leaving many without immediate access to their funds. "With compliance burdens that exclude micro, small, and medium enterprises (MSMEs), millions remain disconnected from global opportunity," he stated, underscoring the urgent need for reform. Learn more about this topic on Wikipedia.
Regarding cardoso says cross-border payments too slow, costly for developing economies, This inefficiency translates into higher foreign-exchange costs, which can deter small and medium-sized enterprises from engaging in international trade. In a world where financial integration is pivotal for growth, Cardoso argues that these payment barriers are not just an inconvenience; they are a macroeconomic drag on development.
Digital Infrastructure as a Solution
Cardoso believes that reforming cross-border payments requires more than just technical adjustments; it is a necessity for macroeconomic stability and growth. He pointed out that the integration of digital payment systems can play a transformative role in enhancing economic participation. According to him, economies cannot achieve inclusivity without a robust payment system.
Regarding cardoso says cross-border payments too slow, costly for developing economies, He cited the examples of India and Brazil, where the rapid adoption of interoperable platforms and instant payment systems have significantly lowered transaction costs and increased financial inclusion. "Digital innovation presents a historic opportunity to reduce costs, shorten settlement times, and expand access for households and MSMEs," Cardoso noted. By leveraging technology, developing nations can potentially leapfrog traditional banking systems and create more efficient financial infrastructures.
Nigeria's Initiatives to Modernize Payments
Nigeria is actively pursuing this vision of modernization within its payment ecosystem. The CBN has launched the Payment System Vision 2028, which focuses on five strategic priorities aimed at enhancing innovation, resilience, and financial inclusion. This initiative is designed to create a more interconnected payment framework that can better serve the needs of its citizens and businesses.
Regarding cardoso says cross-border payments too slow, costly for developing economies, In June 2025, Nigeria introduced the National Payment Stack, which is built on the ISO 20022 messaging standard. This upgrade is expected to support multiple currencies and facilitate more seamless transactions across borders. By aligning its payment systems with international standards, Nigeria aims to enhance its competitiveness in the global market.
Global Call for Reform
The G-24, comprising 28 developing nations, serves as a platform for coordinating international monetary and development finance issues. Cardoso's statements resonate with the group, highlighting a shared concern over existing financial structures that disproportionately favor developed countries. Inefficiencies in payment systems can stifle growth and stymie efforts to integrate into the global economy.
Regarding cardoso says cross-border payments too slow, costly for developing economies, As global economic conditions evolve, the need for an inclusive financial system becomes increasingly urgent. The G-24's members-ranging from Algeria to Venezuela-face similar challenges in engaging with global trade networks. Cardoso's call for reform is not merely a plea but a necessary step toward creating equitable opportunities for all nations.
Regarding cardoso says cross-border payments too slow, costly for developing economies, In summary, the call for reforming cross-border payments is critical for the economic health of developing countries. The integration of digital innovations can provide the necessary tools to bridge the gaps in the current financial systems. As nations like Nigeria take steps to modernize their payment infrastructures, they set a precedent for others to follow, emphasizing that an inclusive and efficient payment system is fundamental for global participation.