Measuring Fees and Transparency in Nigeria’s Digital Financial Services

Nigeria’s Digital Financial Services ecosystem has evolved rapidly over the last decade. Mobile connectivity is expanded, and the payments ecosystem has become increasingly digital. The onset of the COVID-19 pandemic further accelerated the use of digital financial services, with year-on-year growth in transaction volumes of 108 percent. From 2019 to 2020, the use of agent banking networks grew by 19 percent, as customers sought alternatives to banking halls while lockdowns were in place, and then maintained their use of the channel when the restrictions were lifted.

The Central Bank of Nigeria recognizes the importance of product pricing on financial inclusion outcomes and reviewed pricing guidelines in 2019, issuing lowered pricing caps for electronic banking transaction effective January 2020. This study sought to understand the ease of accessing accurate price information from providers as well as their levels of compliance with the revised pricing guidelines.