Nigeria’s Central Bank (CBN) has reinstated Jimoh Musa Itopa, a director in the Payments System Management Department (PSMD), who was retrenched alongside 16 other directors in 2024, according to multiple sources familiar with the matter. His return signals a significant leadership change in the crucial department responsible for licensing payment switching companies, regulating agent banks, and overseeing cashless policies and open banking initiatives.
The reasons behind Musa’s reinstatement remain unclear, raising questions about the CBN’s confidence in the current leadership of the PSMD, including acting director Oladimeji Yisa Taiwo and other deputy directors such as Dr. Isaiah Ademola Adeleke, who oversees payment system oversight and compliance division and Dr. Bukola Akinwunmi, head of payments policy and regulation.
One theory circulating in industry circles is that the CBN requires experienced hands like Musa to drive the department, especially with growing challenges in the digital payment landscape. His previous leadership experience, including his role as Chairman of the Nigerian e-Fraud Forum (NeFF) and the Nigerian Payments Initiatives Coordinating Committee (PICC), is seen as a potential asset for the CBN in navigating these complexities.
“This development means there is a capacity gap in the PSMD and is a vote of no confidence in its current leadership,” said one industry insider who asked not to be named to speak freely.
Musa’s move to the Capacity Development Department in 2023, a unit responsible for training CBN staff, followed an internal restructuring after the implementation of a special investigator’s report. The report, which examined the tenure of the embattled former CBN governor, Godwin Emefiele, led to the dismissal of several senior officials. However, it remains unclear whether these officials, including Musa, were formally indicted as part of the investigation.
CBN did not immediately respond to a request for comments.
Musa’s reinstatement will likely impact the future direction of Nigeria’s payment systems policy, influencing key areas such as licensing, compliance, and the regulatory framework for payment infrastructure. The shift could have far-reaching effects on banks, fintechs, and payment service providers operating in the country.
Musa did not immediately respond to a request for comments.
The Central Bank has placed considerable focus on digital payments in recent years, aiming to reduce reliance on cash and foster greater financial inclusion, particularly as fintech startups continue to grow in influence.
In 2022, the CBN unveiled a five-year strategic roadmap to boost digital payments adoption. In 2023, the botched currency redesign policy created a cash shortage but also contributed to a surge in digital payments, as Nigerians increasingly turned to fintech apps like OPay and PalmPay for transactions. According to the CBN, online transactions in Nigeria surged to ₦476.89 trillion during the first half of 2024.
