Electronic payment transactions in Nigeria soared to an unprecedented N1.07 quadrillion in 2024, marking the first time the country’s e-payment system crossed the quadrillion mark. This represents a 79.6% increase from the N600 trillion recorded in 2023, highlighting the rapid growth of digital transactions.
In dollar terms, the total transaction value stood at approximately $702.6 billion, based on the closing exchange rate of N1,535/$1 on December 31, 2024.
According to data from the Nigeria Inter-Bank Settlement System (NIBSS), e-payment usage saw steady growth throughout the year, with December 2024 recording the highest transaction volume. The festive period, characterized by heightened spending, pushed electronic transactions to a record N115.1 trillionin a single month.
Beyond the total value of transactions, the volume of electronic payments processed also saw a significant jump. The number of transactions grew from 9.7 billion in 2023 to 11.2 billion in 2024, representing a 15.5% increase year-on-year.
Industry analysts attribute this surge to the cash scarcity and cashless policy implemented by the Central Bank of Nigeria (CBN). Under the revised policy, which took effect on January 9, 2023, individuals are limited to withdrawing N500,000 per week , while corporate organizations have a weekly limit of N5 million.
Lagos-based financial analyst Adewale Adeoye noted that banks’ reluctance to release large cash amounts has further driven Nigerians toward digital payments.
“If you walk into a bank today to withdraw cash, you may be told that you can’t collect more than . N5,000 over the counter. If ATMs are out of cash, people turn to PoS operators or rely on mobile transfers,” he explained.
The NIBSS Instant Payment (NIP)system, introduced in 2011, has become the backbone of Nigeria’s cashless policy. Banks and financial institutions have integrated NIP across multiple channels, including:
– Internet banking
– Bank branches and kiosks
– Mobile apps and USSD
– PoS terminals and ATMs
Despite challenges such as network failures and fraud concerns, e-payment adoption continues to grow as more Nigerians embrace digital transactions.
With electronic transactions surpassing the quadrillion mark, Nigeria is rapidly shifting toward a *cashless economy*. The trend is expected to continue as digital payments become the dominant mode of financial transactions, reducing dependence on cash and improving financial inclusion.
