The Central Bank of Nigeria has raised regulatory and consumer protection questions about non-bank businesses that offer customers instalment payment options, the bank said during Nigeria Fintech Week 2026 in Lagos.
CBN voice at fintech conference
CBN Governor Olayemi Cardoso, speaking through Abiodun Olalekan Okunola, Head of the Innovation Management Division at the bank, told attendees that embedded finance is becoming mainstream and that some non-bank firms are effectively offering credit without a banking licence. The governor pointed to airline Air Peace and travel company Wakanow as examples of firms that prompt customers to pay “small small” for services, according to a report by Nairametrics.
Cardoso asked how the CBN should regulate such arrangements, saying, “Now, think about it: they are offering credit. For us, they are non-bank, they are not licensed to offer credit. How do we regulate?” The governor also raised concerns about where customers should seek redress if their rights are affected in transactions involving non-bank providers. “Because it means that when your rights are trampled there, if you come to CBN Consumer Protection and ask us, we’ll be like, ‘Who… are they even licensed?'” he said.
Regulatory and market context
The CBN framed embedded finance alongside other developments reshaping Nigeria’s financial system, including artificial intelligence, open banking, digital money and cross-border commerce, the Nairametrics report said.
Nairametrics also noted recent figures and trends in Nigeria’s consumer credit market. The outlet reported that the country’s Buy Now, Pay Later market was projected in June 2025 to grow from $1.42 billion in 2024 to $2.61 billion by 2030. The report added that more than 400 digital lenders were operating in the country at that time.
On regulatory steps, Nairametrics reported in September 2026 that the Federal Competition and Consumer Protection Commission had registered 525 digital lenders, with a further 33 lenders operating under waivers because they were already licensed by the CBN.
Industry moves and examples
The Nairametrics piece noted that the embedded finance model has spread beyond traditional banks. It cited Kalabash, a fintech subsidiary of Wakanow Group, which in 2025 partnered with Outpayce from Amadeus to make its Pay Small Small travel-payment solution available through airline and travel platforms.
Regulators and industry players face a choice on how to treat payment plans offered by non-financial firms, the report said. The CBN’s remarks at Nigeria Fintech Week underline a gap between emerging commercial practices and existing licensing rules, particularly where consumer credit is involved.
Read the full Nairametrics report here: https://nairametrics.com/2026/09/26/cbn-raises-regulatory-questions-over-non-banks-offering-instalment-credit.
Featured image: chippla at English Wikipedia via Wikimedia Commons, Public domain.
Leave a comment