Nigerians are embracing digital payments more than ever, with electronic transactions reaching a record N1.07 quadrillion in 2024.
This marks the first time the country’s e-payment value has hit the quadrillion mark.
The surge represents a 79.6% jump from N600 trillion recorded in 2023, according to data from the Nigeria Inter-Bank Settlement System (NIBSS). In dollar terms, this translates to approximately $702.6 billion at the closing exchange rate of N1,535/$1 on December 31, 2024.
Festive Season Drives Spending Boom
Electronic transactions peaked in December 2024, a period of heightened spending due to festive celebrations. Nigerians spent N115.1 trillion through digital channels that month, the highest ever recorded on NIBSS platforms.
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Transaction volumes also saw a significant rise, increasing from 9.7 billion in 2023 to 11.2 billion in 2024—an annual growth of 15.5%.
Analysts link the sharp rise in e-payments to Nigeria’s ongoing cash scarcity and the Central Bank of Nigeria’s (CBN) cashless policy. The policy, enforced since January 2023, limits individual cash withdrawals to N500,000 per week, while corporate entities can withdraw up to N5 million weekly.
Adewale Adeoye, a financial analyst in Lagos, said many Nigerians have been forced to adopt digital payments due to limited access to cash. “Banks rarely have enough cash, and over-the-counter withdrawals are now capped at just N5,000 in some branches,” he explained.
“With ATMs frequently running dry, people either turn to PoS operators or rely on mobile transfers,” he added.
E-Payment Channels Gain Popularity
Nigeria’s rapid shift to digital transactions is powered by platforms such as mobile banking apps, Unstructured Supplementary Service Data (USSD), PoS terminals, and ATMs.
The NIBSS Instant Payment (NIP) system, introduced in 2011, remains the backbone of inter-bank transactions, offering real-time fund transfers.
Experts predict e-payment volumes will continue to rise as more Nigerians adapt to the cashless economy. With banks tightening cash withdrawals, digital payments are becoming not just an option but a necessity.
