In a game-changing agreement for Africa’s digital payments future, Algeria has signed a $300 million deal to supply two million payment terminals to Nigeria. Although, this move might seem like a technical procurement, its implications go far beyond hardware, it has the potential to deepen financial inclusion, reshape informal commerce, and accelerate digital transformation across West Africa.
There’s something symbolic here. Algeria, a country rapidly expanding its internal payment infrastructure, is now exporting this capacity to Nigeria which is a testament to its maturity in the payments space. Algerian authorities have been aggressively implementing reforms, with incentives like VAT and customs exemptions making it easier for merchants to adopt electronic payment (EFTPOS) systems.
Meanwhile, Nigeria is in a domestic transformation of its own. The Central Bank of Nigeria has declared an ambitious vision to modernize retail payments by mandating that all PoS (Point-of-Sale) terminals feature geo-tagging and adhere to the ISO 20022 standards by late 2025. That means every terminal will now transmit location data with transactions enhancing transparency, rooting out fraud, and strengthening anti-money laundering efforts.
Now, imagine two million additional terminals entering that system. Nigeria would not only fill current gaps, but fast-track its journey to a truly traceable, secure digital payments ecosystem. For everyday users, it means convenience: payments at more local markets, reduced reliance on cash, and smoother financial participation for merchants.
Yet this deal is about more than commerce, it’s a narrative shift. Often, we view African nations as recipients of technology. Here, Algeria is emerging as a supplier. This kind of intra-African collaboration is precisely what the continent needs: regional strength-building and tech ecosystems that empower neighbors.
Not everything is settled yet. Details like implementation timelines, standards harmonization, and support for small-scale merchants are still under negotiation. Will all terminals be Nigerian-compliant with GPS and ISO data messaging? Will smaller agents get the same access as big malls? These are important questions for ensuring the contract delivers widespread impact rather than concentrated benefits.
Still, I see this $300 million agreement as a bold reminder of what’s possible when African nations pool expertise and capacity. Algeria is sending more than hardware to Nigeria, it’s sending a blueprint for scalable, traceable digital payments. For Nigeria, the immediate gain is clear: faster progress toward financial inclusion goals. On a deeper level, it signals a new era in intra-African trade and digital collaboration.
