Nigeria’s journey toward a cashless economy has reached a new milestone, as electronic payment transactions surged to $256 billion (₦256 trillion) in the third quarter of 2025, according to the latest Bullion Report by the Central Bank of Nigeria (CBN). The figure reflects one of the most significant digital finance growth spurts in the country’s history, driven by policy reforms, fintech innovation, and a growing preference for real-time transactions.
Digital Payments Surge Amid Policy Reforms
The CBN report attributes this record growth to a combination of deliberate policy interventions and technological advancements within Nigeria’s financial ecosystem. Key enablers include major enhancements to the Nigeria Inter-Bank Settlement System (NIBSS), strict enforcement of cashless policy measures, and the rapid expansion of Point-of-Sale (PoS) networks across the country.
Merchant PoS terminals have now surpassed three million active devices, creating one of Africa’s largest merchant acceptance networks. This expansion has significantly improved payment accessibility for small businesses, market traders, and consumers, allowing for smoother transactions and faster adoption of digital payment methods nationwide.
The report highlights that instant payments remain the dominant transaction channel, accounting for 68% of all e-payment activity, followed by PoS, mobile banking, and internet banking. This dominance demonstrates Nigerians’ increasing preference for fast, secure, and reliable digital channels over traditional cash-based methods.
Fintechs and Youth Innovation Fuel Growth
Nigeria’s fintech sector continues to play a pivotal role in driving digital transformation across payments, lending, and personal finance. Startups led by young innovators are building scalable solutions that integrate mobile wallets, USSD, and micro-merchant tools to reach underserved users.
In parallel, commercial banks and microfinance institutions have invested heavily in financial literacy and awareness campaigns, helping millions of Nigerians transition confidently to electronic banking. The synergy between regulatory policy, bank-led education, and youth-driven innovation has reinforced consumer trust in digital finance, ensuring that adoption extends beyond urban centers to rural and peri-urban areas.
Financial Inclusion Reaches Record High
The CBN report also notes remarkable progress in financial inclusion, with over 74% of Nigerian adults now accessing formal financial services. This growth has been largely enabled by initiatives such as the Shared Agent Network Expansion Facility (SANEF), which now boasts over 2.1 million active agents across the country.
Collaborations between fintech firms and telecom operators have further extended connectivity and transaction access to remote communities, making digital payments a cornerstone of Nigeria’s inclusive growth agenda.
Despite economic headwinds — including inflation surpassing 28%, currency fluctuations, and the lingering effects of the naira redesign — Nigeria’s e-payment system demonstrated strong resilience. The seamless performance of mobile and instant payment systems helped cushion economic disruptions, ensuring liquidity and stability within the retail and informal sectors.
Regulatory Strengthening and Future Outlook
The CBN emphasized that ongoing reforms, including updates to mobile money operations, the introduction of open banking guidelines, and improvements in cybersecurity frameworks, are reinforcing trust and compliance within the digital finance ecosystem.
These reforms are expected to foster greater interoperability, innovation, and competition among payment service providers while maintaining robust consumer protection standards.
Looking ahead, the CBN projects that Nigeria’s digital payments sector will continue to be a key driver of economic inclusion and growth, positioning the country as a continental leader in fintech innovation. The regulator also hinted at further investments in digital infrastructure to expand access and reliability across all six geopolitical zones.
Nigeria’s Cashless Future Takes Shape
With over $256 billion in transactions recorded in a single quarter, Nigeria is rapidly cementing its position as one of the most digitized payment economies in Africa. The momentum reflects not just technological advancement, but also a broader societal shift toward convenience, transparency, and trust in financial technology.
As regulatory reforms deepen and public confidence grows, experts predict that Nigeria’s evolving e-payment ecosystem will continue to set the pace for other emerging markets — demonstrating how strategic innovation and sound policy can power a truly cashless economy.
