The Central Bank of Nigeria (CBN) has reinstated a director, Jimoh Musa Itopa, in the Payments System Management Department (PSMD). His return signifies a notable change in leadership within the department responsible for various crucial functions like licensing payment switching companies, regulating agent banks, and overseeing cashless policies and open banking initiatives. In 2023, he was moved to the Capacity Development Department, which focuses on training CBN staff.
A CBN spokesperson clarified that Mr. Itopa was not affected by the restructuring exercise in May 2024 and was simply redeployed to the Capacity Development Department in November 2023. His recent reassignment back to PSMD is part of the ongoing restructuring efforts by the Bank.
The reinstatement of Musa has sparked discussions about the CBN’s faith in the current leadership of PSMD, including acting director Oladimeji Yisa Taiwo and other deputy directors such as Dr. Isaiah Ademola Adeleke and Dr. Bukola Akinwunmi. Some suggest that the CBN may require experienced individuals like Musa to navigate the challenges in the digital payment landscape effectively, given his past leadership roles in various committees.
Industry insiders speculate that Musa’s return signals a capacity gap in the PSMD and implies a lack of confidence in its current leadership. His reinstatement could potentially influence Nigeria’s payment systems policy, impacting areas such as licensing, compliance, and the regulatory framework for payment infrastructure, which could have broad implications for banks, fintechs, and payment service providers operating in the country.
Despite the reinstatement, Musa has not commented on the matter yet.
The CBN has been emphasizing digital payments to reduce cash dependency and enhance financial inclusion, especially with the increasing influence of fintech startups. The Bank unveiled a five-year strategic roadmap in 2022 to boost digital payments adoption and witnessed a surge in online transactions in 2023 following a currency redesign policy that led to a cash shortage.
Editor’s note: This article has been updated to reflect the clarification provided by the CBN regarding Mr. Itopa’s status after the restructuring in May 2024.