Nigeria’s electronic payment transactions have recorded a remarkable surge, reaching N284.9 trillion in the first quarter of 2025, representing a 22% increase compared to N234.4 trillion in the same period last year.
According to the Nigeria Inter-Bank Settlement System (NIBSS), this growth reflects the country’s accelerating shift toward a cashless economy, driven by sustained policy initiatives and periods of cash scarcity. Despite recurring network glitches across major providers during the first three months of 2025, electronic payments continue to gain widespread adoption.
Key Highlights
- Total Transaction Value (Q1 2025): N284.9 trillion (+22% YoY)
- January: N100 trillion
- February: N88.8 trillion
- March: N96 trillion
- Transaction Volume: 2.215 billion transactions
- January: 792 million
- February: 687.5 million
- March: 735.5 million
Drivers of Growth
Several factors have fueled this surge in e-payment adoption:
- Cash Scarcity: Limited cash availability prompted consumers and businesses to embrace electronic alternatives.
- Fintech Expansion: Rapid fintech growth has boosted account ownership, especially among SMEs and the informal sector.
- Improved Digital Infrastructure: Better broadband access, mobile penetration, and payment reliability have strengthened e-payment appeal.
National Payment Stack (NPS)
To advance digital payments and deepen financial inclusion, NIBSS has rolled out the National Payment Stack (NPS)—a next-generation infrastructure that complements the NIBSS Instant Payment (NIP) platform. Key features include:
- Real-time settlement for bulk and single transactions
- ISO 20022 advanced payment messaging
- Integrated KYC via BVN, RC Number, or TIN
- Request-to-Pay, Direct Debit, and multi-currency readiness
- Enhanced fraud management and dispute resolution
This innovation positions Nigeria for a future dominated by digital transactions and supports its ambition to achieve a $1 trillion GDP within eight years.
PoS Transactions Hit N10.45 Trillion
Point-of-Sale (PoS) transactions also grew sharply to N10.45 trillion in Q1 2025, a 209% increase from N3.62 trillion in the same period last year. Active PoS terminals reached 5.9 million nationwide by the end of March 2025, reflecting the rapid digitization of retail payments.
Outlook
Nigeria’s surging e-payment adoption is a clear indicator of its transition to a cashless economy. With the combined growth of fintech solutions and the rollout of NPS, the country is on track to become one of Africa’s leading digital economies. Despite lingering network challenges, the trajectory suggests continued growth in electronic transactions and a broader impact on financial inclusion and economic development.
