Nigeria COVID-19 lockdown: CBN calls for use of alternative payment channels

As Nigeria enters day one of the lockdown for residents of Lagos, Abuja, and Ogun states following President Buhari's announcement of a restriction of movement, the Central Bank of Nigeria has called for the use of alternative payment channels to limit the spread of COVID-19. Emphasizing the importance of reducing cash transactions during this period, Babs Ogundeyi, Co-Founder and CEO of Kuda, a mobile-only bank, joined CNBC Africa to discuss the role of digital banking in the current landscape. Ogundeyi highlighted the significance of leveraging digital channels amidst the pandemic, stating that the widespread use of cash could potentially contribute to the spread of the virus. He emphasized the need to promote digital transactions and reduce physical interactions in order to safeguard public health. Drawing parallels with global trends, he pointed out the ongoing shift towards digital payments across the continent. Kuda, a mobile-only bank, has been at the forefront of this digital transformation. Since its launch in August 2019, the bank has witnessed a steady increase in adoption rates, with thousands of accounts being opened every month. Ogundeyi noted that the current crisis has further accelerated the uptake of digital banking services, as customers seek convenient and reliable ways to manage their finances remotely. Despite initial skepticism, Kuda's customer base has grown significantly, with users turning to the platform as their primary bank account. The bank's support infrastructure, built on remote services and messaging platforms, has facilitated seamless interactions with customers, eliminating the need for in-person visits to branches. As the company continues to enhance its offerings, including the introduction of virtual cards for online transactions, Kuda aims to provide a comprehensive digital banking experience tailored to the evolving needs of its customers. As the financial landscape undergoes rapid digitization, Kuda remains committed to driving financial inclusion and promoting the use of alternative payment channels in Nigeria. With the support of innovative fintech solutions like Kuda, individuals and businesses can navigate the challenges posed by the COVID-19 pandemic while embracing the benefits of a cashless economy.