The Central Bank of Nigeria and Brazil’s central bank have formalized a partnership aimed at strengthening financial ties between Africa’s largest economy and Latin America’s dominant financial market.
During President Bola Tinubu’s state visit to Brazil, Central Bank of Nigeria Governor Olayemi Cardoso met with his Brazilian counterpart, Gabriel Muricca Galípolo, in Brasília. They discussed expanding collaboration in fintech innovation, mobile money systems, and cross-border remittance flows.
Remittances and digital payments take center stage
Nigeria received over $20 billion in diaspora remittances in 2024, part of a broader surge in remittance flows to Africa, which climbed from $53 billion in 2010 to roughly $95 billion this year. This partnership seeks to formalize these flows and reduce transaction costs, which currently average 5%—above the UN Sustainable Development Goal target of 3%.
Cardoso said 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.
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Brazil’s Pix payment system, which has surpassed 150 million users annually, offers a model for Nigeria’s digital payment infrastructure. Nigeria’s mobile money platforms—M-Pesa, MTN MoMo, and Airtel Money—have already transformed cross-border payments across Africa. They hope to align regulatory frameworks to improve these systems.
The partnership highlights Brazil’s Afro-Brazilian community as a key opportunity to boost remittance flows. This demographic link adds a cultural dimension to the economic collaboration.
Regulatory alignment and skepticism
Technical meetings between CBN directors and their Brazilian counterparts covered currency operations, financial policy regulation, and monetary policy. Galípolo described the engagement as critical to promoting financial stability and mutual prosperity.
Brazil’s central bank has successfully implemented open banking frameworks and regulatory sandboxes, while the CBN has pioneered mobile money regulations across West Africa. The collaboration aims to address challenges including infrastructure limitations and regulatory uncertainty.
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Financial analysts praised the potential for knowledge sharing, while critics pointed to past MOUs that never materialized. Economic expert Collins Nweke noted that the potential is huge but if it is not driven purposefully, it will end up like other MOUs.
For now, the partnership remains in its early stages, with both central banks signaling a long-term commitment to collaboration.
Both central banks have indicated that technical teams will continue working on regulatory alignment in the coming months to enhance cross-border payment systems.
