Nigeria’s digital payment ecosystem continues to break records, with electronic transactions hitting an unprecedented N1.08 quadrillion in 2024, an 80% increase from N600 trillion in 2023. This surge underscores the growing adoption of cashless payment systems, driven by improved financial technology, a reduction in cash-based transactions, and evolving consumer habits.
Data released by the Nigeria Inter-Bank Settlement System (NIBSS) also highlighted a major jump in Point-of-Sale (PoS) transactions, which soared by 81% to N19.4 trillion in 2024, compared to N10.73 trillion in 2023. This trend signals strong consumer reliance on digital payments amid ongoing shifts in Nigeria’s financial landscape.
Month-by-Month Breakdown: A Year of Record Growth
A closer look at the monthly transaction trends for 2024 reveals significant fluctuations, with notable peaks in the final quarter:
- January 2024: N72.11 trillion set a solid start for the year.
- February: A 10% jump saw transactions rise to N79.32 trillion.
- March: Transactions grew 4.7%, reaching N83.05 trillion.
- April: A slight dip to N75.32 trillion, marking a 9.3% decline.
- May: Transactions rebounded strongly, surging 16.1% to N87.48 trillion.
- June & July: Minor fluctuations, with transactions at N79.58 trillion and N89.50 trillion, respectively.
- August & September: A steady rise to N90.82 trillion and N93.46 trillion, respectively.
- October 2024: A significant milestone as transactions exceeded N100 trillion for the first time, reaching N103.21 trillion—a 10.4% monthly increase.
- November & December: Transactions hit N109.53 trillion, with December peaking at N115.16 trillion, marking a record-breaking close to the year.
PoS Transactions See Unprecedented Growth
PoS transactions followed a similar trajectory, with major spikes in the final quarter of 2024:
- July 2024: PoS payments exceeded N1 trillion for the first time, reaching N1.01 trillion.
- October: A dramatic surge to N1.84 trillion, reflecting a sharp increase in consumer spending.
- November: The all-time monthly record of N4.38 trillion—more than double October’s total—was driven by festive season shopping and business transactions.
- December: A slight dip to N3.25 trillion, but momentum remained high as cashless payments continued to dominate.
Why Is Digital Payment Growing So Rapidly?
Several factors have contributed to the surge in electronic transactions and PoS payments:
- Cashless Policy & Withdrawal Limits
- The Central Bank of Nigeria (CBN) introduced a cashless policy limiting withdrawals to N500,000 per week for individuals and N5 million for businesses.
- This has forced more Nigerians to adopt digital alternatives, such as mobile transfers and PoS payments.
- Fintech Expansion & Banking Innovations
- Banks and fintech companies have enhanced digital payment infrastructure, making transactions faster, easier, and more secure.
- Mobile banking, USSD payments, and PoS adoption have increased significantly.
- Consumer Behavior Shift
- With cash shortages and ATM limitations, many Nigerians now prefer digital transactions over physical cash payments.
- Businesses are increasingly accepting electronic payments, further driving adoption.
BVN Enrollment Lags Behind Transaction Growth
Despite the expansion in e-payments, Bank Verification Number (BVN) registrations showed slower growth. BVN enrolment rose from 64.92 million in January 2024 to 63.47 million by year-end, reflecting a net increase of 3.36 million new enrolments.
This suggests that while digital payments are growing, a significant portion of the population remains unbanked or underbanked, highlighting the need for further financial inclusion initiatives.
What’s Next for Nigeria’s Digital Payment Ecosystem?
As Nigeria transitions into a cashless economy, electronic transactions and PoS payments will likely continue their upward trajectory in 2025 and beyond. With fintech innovations, improved regulatory policies, and greater financial inclusion, the N1 quadrillion milestone could soon become a benchmark rather than an exception.