Digital payments growing faster than regulators can keep up – WAIFEM

The West African Institute for Financial and Economic Management (WAIFEM) has warned that the rapid growth of digital payment services across West Africa is outpacing the ability of regulators to effectively supervise them.

The institute said central banks are increasingly responsible for overseeing mobile money platforms, instant money transfers and other digital financial services, but many lack the skilled personnel needed to meet the growing demands.

Speaking at a training programme on payment systems, Dr Ampadu Kora of WAIFEM said the shortage of trained personnel had become a major challenge for financial regulators across the subregion.

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“The regulatory frontier has widened faster than WAIFEM capacity has grown,” he said, explaining that although central banks have the authority to regulate digital payments, they need more technically trained officers to carry out their responsibilities effectively.

He noted that when WAIFEM was established in 1996, payment systems mainly involved cheque clearing, cash handling and traditional banking transactions. However, technological developments have introduced more complex systems that require stronger regulatory oversight.

Dr Kora explained that central banks now supervise national payment switches, mobile money platforms with millions of accounts and a growing number of financial technology companies, making it necessary to strengthen regulatory capacity.

He also stressed the importance of cooperation among West African countries to make cross-border payments easier, faster and safer for individuals and businesses.

According to him, connecting payment systems across countries and adopting common regulatory standards would help deepen financial integration within the subregion.

He said WAIFEM’s training programme would equip central bank officials with knowledge of payment systems, financial risks, liquidity management and international standards to improve their supervisory work.

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WAIFEM was established in 1996 by the central banks of The Gambia, Ghana, Liberia, Nigeria and Sierra Leone to strengthen capacity in economic management, debt management and financial sector supervision.

DR/MA

Digital Payments Are Growing, But Regulation Must Catch Up – WAIFEM