The value of electronic transactions in Nigeria has reached a new milestone in 2024, soaring by 79% compared to the previous year, totaling a record N1.08 quadrillion. This data, provided by the Nigeria Inter-Bank Settlement System (NIBSS), highlights the continued growth of NIBSS Instant Payments (NIP), an online, real-time interbank payment solution introduced in 2011.
A closer look at the figures reveals a steady upward trajectory for electronic payments throughout 2024. In January, the total value of NIP transactions was N72.11 trillion. By October, the value had surged to N103.21 trillion, followed by N109.53 trillion in November, and finally, N115.12 trillion in December.
January’s total, though the lowest monthly figure of the year, was still notably higher than any month in the previous year, indicating a growing shift toward digital payment methods. On the volume front, electronic transactions increased by 13.69% from 11.69 billion to 13.92 billion by the end of 2024. The peak in transaction volume occurred in May, with 1.02 billion transactions, while June saw the lowest volume at 871.66 million.
The rise in digital transactions comes in the wake of the Central Bank of Nigeria’s (CBN) policy change on January 9, 2023, which imposed stricter limits on cash withdrawals across all payment channels. The policy aims to reduce the circulation of physical cash in the economy, promoting electronic payments for goods and services.
CBN’s cashless policy is seen as a way to enhance banking services, reduce transaction costs, drive financial inclusion, and curb cash-related crimes, including banditry and terrorism financing. The policy has also been linked to better access to banking and credit services, further supporting Nigeria’s move toward a digital economy.
According to the 2023 EF in a Access to Finance Survey, financial inclusion in Nigeria rose to 74% in 2023, up from 68% in 2020. However, 26% of the population remains financially excluded.
Sarafadeen Fasasi, National President of the Association of Mobile Money and Bank Agents in Nigeria, emphasized the role of mobile agents in expanding financial inclusion. Fasasi pointed out that agents have played a pivotal role in reaching the unbanked across the country, particularly in rural areas, by helping individuals conduct digital transactions. He noted that even small-scale traders now use agents to transfer funds digitally, bypassing the need to send cash through traditional channels like motor parks.
“Petty traders no longer rely on cash for payments,” Fasasi explained. “They meet with agents in the market, share their wholesaler’s account number, and in minutes, they receive payment confirmations. This has significantly boosted digital transaction visibility.”
Fasasi also highlighted improvements in the NIBSS platform, noting that transaction failures have decreased, and the system’s reliability has gained more trust from users. Compared to two or three years ago, the platform now experiences fewer downtimes, making digital payments more seamless and efficient for Nigerians.
