CBN Raises Concerns Over Non-Bank Credit Schemes in 2026

The Central Bank of Nigeria (CBN) has expressed regulatory concerns about the increasing prevalence of "pay small small" schemes offered by non-bank businesses to provide credit to customers. CBN Governor Olayemi Cardoso, represented by Abiodun Olalekan Okunola, Head of the Innovation Management Division at the CBN, addressed this issue during Nigeria Fintech Week 2026 in Lagos.

Cardoso noted that the rise of embedded finance, where non-bank entities offer financial products, presents regulatory challenges, especially when unlicensed companies provide instalment payment options. He cited Air Peace and Wakanow as examples of such businesses.

The Governor emphasized that these arrangements raise questions about the CBN's regulatory role and the implications for customers who may lack clarity on where to seek redress for complaints. Cardoso highlighted that embedded finance is transforming Nigeria's financial landscape alongside other developments like artificial intelligence and digital money.

As of September 2026, 525 digital lenders had been registered with the Federal Competition and Consumer Protection Commission (FCCPC), which is enforcing consumer protection rules.