Nigeria to Make Digital Payments Cheaper for Small Businesses

Small business owners across Nigeria could soon save money on every sale as regulators prepare to expand support for instant digital payments with lower transaction fees.

Emmanuel Ojo, CEO of Redtech Limited, predicts that Nigeria's fintech regulators will deepen support for interoperable QR codes and instant fund transfers at checkout points throughout 2026. The key incentive? Significantly reduced transaction costs for retailers and merchants.

The shift reflects how Nigerians actually want to pay. Instant fund transfers at merchant locations have grown by over 30% year over year, and that growth is accelerating. Consumers are voting with their wallets, choosing account-to-account payments that increasingly rival traditional card transactions.

For merchants, this is a financial win. Lower transaction fees mean more profit stays in their pockets with every sale. For customers, it means faster checkouts using payment methods they already prefer on their phones.

Ojo brings serious credentials to this prediction. With over 20 years of experience across telecommunications and financial services, he's led Redtech's strategic expansion into fintech across Nigeria and Africa. He previously served as CEO of Chamsswich, where he guided major growth and technology upgrades.

The Ripple Effect

This regulatory support could transform how millions of small businesses operate across Nigeria. Street vendors, market stalls, and neighborhood shops that once dealt only in cash could seamlessly accept digital payments without expensive card terminals or high processing fees.

The broader financial inclusion impact matters too. As digital payments become more accessible and affordable, more Nigerians gain entry into the formal financial system. That opens doors to savings accounts, credit access, and economic opportunities previously out of reach.

Regulators will need to balance innovation with stability. Overreliance on a single payment system could create ecosystem risks, and policy changes might encourage a more diversified payment mix. But the trajectory is clear: Nigeria is moving toward a more inclusive, affordable digital payment future.

Nigeria's 2026 could mark a turning point where digital payments truly work for everyone, not just those who can afford the fees.