Nigeria’s adoption of digital finance continues to surge as electronic payment transactions rose by 24% year-on-year (YoY) to ₦317.2 trillion in the first quarter of 2025, according to the Nigerian Interbank Settlement System (NIBSS). This increase from ₦255.69 trillion in Q1 2024 indicates a strong move away from cash-based transactions. The growth reflects a broader shift in consumer behavior, banking innovations, and increased digital penetration across the country.
The report highlights that NIBSS Instant Payment (NIP) remains the dominant platform, recording ₦285 trillion in transactions, up 21.5% from Q1 2024. Mobile Money Operations (MMO) followed with ₦20.7 trillion, marking a 20.3% increase. Automated Clearing House (ACH) transactions grew by 39% to ₦14.13 billion, and cheque transactions rose by 31.4% to ₦886.8 billion, indicating that both traditional and digital systems are adapting to the evolving financial landscape.
Interestingly, Point of Sale (PoS) terminals witnessed the most dramatic growth in transaction value, surging 301.5% to ₦10.52 trillion, emphasizing their growing importance in retail payments. However, not all digital channels showed growth. NIBSS Direct Debit (NDD) dropped by 58.6%, eBills Pay plummeted 84.4%, and NQR code transactions fell by 72%, suggesting a shift in user preference or possible infrastructural or awareness gaps affecting these channels.
Despite the sharp rise in transaction value, the total volume of electronic payment transactions dropped 17.3% to 4.4 billion in Q1 2025 from 5.32 billion in the same period last year. This decline stems from reduced activity across seven e-payment channels. Yet, PoS transaction volume rose by 147.4%, further reinforcing its growing role in everyday commerce. Overall, the data underscores Nigeria’s rapid pivot to a digital financial ecosystem, even as some platforms lose traction.
Source: Vanguard