By Seun Ibiyemi
Electronic payments in Nigeria climbed by 24.4 percent year-on-year to ₦295.5 trillion in the first quarter of 2025, new figures from the Nigeria Interbank Settlement System (NIBSS) have revealed.
The data points to the country’s rapid transition towards a cashless economy.
Cashless transactions grew from ₦237.11 trillion in Q1 2024, driven by a marked increase in the use of digital payment channels. Nigerians carried out 2.21 billion electronic payment transactions during the period, with point-of-sale (PoS) terminals responsible for 776.94 million of these.
The Nigeria Instant Payment System (NIP) dominated with ₦285 trillion in transaction value, while PoS payments contributed ₦10.52 trillion.
Adedeji Olowe, founder of fintech firm Lendsqr, explained: “Payment methods have become easier, faster, and better, and people are using them for everyday things. Everyone from small kiosks to supermarkets now accepts transfers. I can buy something worth ₦1,000 downstairs where I live and pay with a transfer.”
The growing preference for instant transfers reflects a maturing payments ecosystem and a diminishing reliance on cash in Africa’s largest economy.
A report by ACI Worldwide forecasts that Nigeria’s real-time payment transactions will grow to 19.7 billion by 2028, up from 7.9 billion in 2023.
The same study, Prime Time for Real-Time Global Payments, ranks Nigeria among the world’s top digital payments markets, recording 7.9 billion real-time transactions in 2024, which accounted for 2.97 percent of the global total of 266.2 billion.
This outperformed other African economies by a wide margin, with South Africa recording 284 million transactions, Egypt 39 million, and Kenya 20 million.
Industry experts credit Nigeria’s leadership in digital payments to the swift expansion of mobile banking, internet banking, and USSD services, all of which have reshaped how people access and manage their finances.
Ongoing fintech innovation and the pivot towards technology-driven models by banks have also boosted adoption.
“From fund transfers and bill payments to PoS purchases, digital platforms have become an essential part of daily living,” said EnterpriseNGR, a financial industry advocacy group.
With growth expected to continue, analysts say Nigeria is consolidating its position as Africa’s most advanced hub for digital payments, laying the groundwork for even wider uptake in the coming years.