Rough Edges of Nigeria’s Digital Payment Ecosystem: Forg ing a Strategic Way Forward

Abstract

Nigeria’s digital payment ecosystem experienced significant growth over the past decade, driven by innovations in financial technology, increased smartphone penetration, and efforts to enhance financial inclusion. However, the system grappled with critical challenges that hindered its optimal functionality. This study, titled "Rough Edges of Nigeria’s Digital Payment Ecosystem: Charting a Strategic Way Forward," investigated the persistent issues affecting the adoption and efficiency of digital payment platforms. Utilizing secondary data and a comprehensive review of extant literature, the study identified key challenges such as infrastructure deficiencies, cybersecurity vulnerabilities, low trust among users, and regulatory bottlenecks. The paper also examined the socio-economic implications of these challenges, particularly their impact on financial inclusion and economic development. Comparative analyses of successful digital payment ecosystems in emerging economies were undertaken to extract actionable insights and best practices. The findings underscored the need for robust policy frameworks, improved technological infrastructure, strategic public-private partnerships, and targeted awareness campaigns to address these challenges. By proposing a strategic roadmap, this study aimed to contribute to the ongoing discourse on building a secure, inclusive, and efficient digital payment ecosystem that supports Nigeria’s economic aspirations.