Nigeria’s digital economy continues to experience remarkable growth, as the country recorded a staggering 7.9 billion digital payment transactions in first four month, according to data from the Nigeria Inter-Bank Settlement System (NIBSS). This milestone highlights the increasing adoption of cashless payment channels by Nigerians, driven by mobile banking, internet banking, and point-of-sale (PoS) transactions.
The data reveals a 45% increase compared to the same period in 2023, which saw around 5.4 billion transactions. The surge is attributed to rising smartphone penetration, improved financial inclusion strategies by banks and fintechs, and the Central Bank of Nigeria’s (CBN) push for a cashless economy. Government policies, such as reduced withdrawal limits and incentives for electronic transactions, have also contributed to this growth.
Mobile payments remain at the forefront of this transformation. With over 230 million mobile subscribers and increased access to internet services, many Nigerians, including those in rural areas, now rely on mobile banking apps, USSD codes, and agent networks for everyday financial services. Fintech firms like Opay, Moniepoint, Flutterwave, and Paga have played a crucial role in bridging gaps left by traditional banks, offering fast and convenient services to the unbanked population.
Furthermore, merchants, small businesses, and service providers are increasingly adopting PoS terminals and QR code payments, making digital payment options more accessible in markets and urban centers. The shift is also supported by youth demographics, who are more tech-savvy and adaptable to digital trends.
However, despite the gains, challenges remain. Issues such as network downtime, cyber security concerns, transactions failure, and limited digital literacy in some regions still affect user confidence. Stakeholders emphasize the need for continued investment in infrastructure, regulatory support, and public awareness campaigns to ensure inclusive growth.
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