Lagos, Nigeria – Central Bank of Nigeria (CBN) Governor Olayemi Cardoso has strengthened ties with his Brazilian counterpart Gabriel Muricca Galípolo during President Bola Tinubu’s strategic state visit to Brazil, marking a pivotal moment in South-South financial cooperation.
The high-level discussions, held on the sidelines of the presidential visit to Brasília, focused on expanding collaboration in fintech innovation, mobile money systems, and cross-border remittance flows between Africa’s largest economy and Latin America’s financial powerhouse.
Governor Cardoso emphasized Nigeria’s commitment to building a more resilient financial system that can attract capital and harness diaspora remittances. “Nigeria is building a more resilient financial system to attract capital, harness diaspora remittances, and create a stable environment where trade and investment can thrive,” he stated during the bilateral meeting.
The collaboration comes at a crucial time when Nigeria’s fintech sector continues to drive financial inclusion across Africa, with mobile money platforms like M-Pesa, MTN MoMo, and Airtel Money transforming cross-border payments. Brazil’s advanced Pix payment system, which has exceeded 150 million users annually, offers valuable lessons for Nigeria’s digital payment infrastructure development.
Social media reactions have been largely positive, with financial analysts on platforms like YouTube and Twitter highlighting the potential for knowledge sharing between the two central banks. Economic expert Collins Nweke noted on News Central TV that “the potential is just huge but if it is not driven purposefully, it will end up like other MOUs collecting dust”.
The discussions highlighted Brazil’s Afro-Brazilian community – the largest population of African descent outside Africa – as a significant opportunity to expand remittance flows. This demographic connection strengthens cultural linkages while presenting substantial economic potential for both countries.
Nigeria received over $20 billion in diaspora remittances in 2024, while remittance flows to Africa overall have surged from $53 billion in 2010 to approximately $95 billion in 2024. The partnership aims to formalize these flows and reduce transaction costs, which currently average 5% – well above the UN Sustainable Development Goal target of 3%.
The technical meetings between CBN directors responsible for currency operations, financial policy regulation, and monetary policy underscore Nigeria’s commitment to deepening institutional collaboration. Governor Galípolo welcomed the engagement, describing it as critical to promoting financial stability and mutual prosperity between the two nations.
Financial technology experts on social media platforms, particularly LinkedIn and Twitter, have emphasized that this cooperation could accelerate regulatory frameworks alignment and improve cross-border payment systems. However, some critics on platforms like TikTok and Instagram have expressed concerns about past MOUs between Nigeria and other countries failing to materialize into concrete results.
The partnership leverages both countries’ regulatory experiences – Brazil’s Central Bank has successfully implemented open banking frameworks and regulatory sandboxes, while Nigeria’s CBN has pioneered mobile money regulations across West Africa. The collaboration aims to address common challenges including infrastructure limitations, regulatory uncertainty, and building consumer trust in digital financial services.