Nigeria’s electronic payment ecosystem experienced remarkable growth in 2024, with transactions reaching an all-time high of N1.08 quadrillion. This marks a 79% increase compared to 2023, according to data from the Nigeria Inter-Bank Settlement System (NIBSS). The surge reflects a growing shift towards digital payment solutions, driven by increased adoption of NIBSS Instant Payments (NIP), an online real-time interbank transaction platform.
Monthly transaction values showed steady growth throughout 2024, starting at N72.11 trillion in January and peaking at N115.12 trillion in December. Notably, even the lowest monthly figure surpassed all months of the previous year, highlighting the accelerating adoption of cashless payments in Nigeria. In terms of transaction volume, electronic payments grew by 13.69%, rising from 11.69 billion in 2023 to 13.92 billion in 2024.
The Central Bank of Nigeria’s (CBN) cash withdrawal policy, implemented in January 2023, played a crucial role in this shift. By limiting cash transactions and promoting electronic payments, the policy aimed to reduce reliance on physical cash, lower banking service costs, and enhance financial inclusion. The move is also expected to curb cash-related crimes such as ransom-taking and terrorism financing while improving monetary policy effectiveness.
Financial inclusion also improved significantly, with the EFInA Access to Finance Survey reporting an increase in formal banking penetration from 68% in 2020 to 74% in 2023. However, gaps remain, particularly in gender equality, urban-rural access, and financial participation in northern Nigeria. Women’s financial inclusion grew to 70% in 2023, yet the gender gap widened from 8% to 9%. Meanwhile, rural areas and the North-East still report higher-than-average exclusion rates.
With Nigeria’s digital payment infrastructure evolving rapidly, industry experts anticipate further growth in 2025. Increased fintech participation, improved financial literacy, and continued policy support from the CBN are expected to drive even greater adoption of electronic transactions, solidifying Nigeria’s position as a leading digital economy in Africa.
Source: Punch