Cashless Economy Gains Ground as E-Payments Reach ₦295.5 Trillion in Q1 2025

Nigeria’s electronic payments surged by 24.4 percent year-on-year to ₦295.5 trillion in the first quarter (Q1) of 2025 as the country shifts toward a cashless economy.

The latest data from the Nigeria Interbank Settlement System (NIBSS) showed an increase from ₦237.11 trillion recorded in the corresponding period of 2024.

According to NIBSS, e-payment channels were used 2.21 billion times in Q1, with Point of Sale (PoS) terminals accounting for 776.94 million transactions.

The breakdown showed that instant payments contributed ₦285 trillion, while PoS transactions added ₦10.52 trillion.

Digital Transactions Dominate Everyday Payments

Industry experts noted that the surge reflects growing consumer and merchant confidence in digital platforms.

“Payment methods have become easier, faster, and better, and people are using them for everyday things,” said Adedeji Olowe, Founder of Lendsqr. “Everyone from small kiosks to supermarkets now accepts transfers. If I go downstairs where I live, I can buy something worth ₦1,000 and pay with transfers.”

Olowe added that the adoption of real-time transfers illustrates a maturing financial ecosystem, one increasingly less dependent on physical cash.

Nigeria’s Global Position in Real-Time Payments

A recent report by ACI Worldwide projects Nigeria’s real-time payment transactions to reach 19.7 billion by 2028, up from 7.9 billion recorded in 2023.

The study, titled “Prime Time for Real-Time Global Payments”, placed Nigeria among the world’s leading digital payment economies, alongside India, Brazil, Thailand, China, and South Korea.

EnterpriseNGR reported that Nigeria accounted for 2.97 percent of global real-time transactions in 2024, significantly outpacing other African markets. South Africa recorded 284 million transactions, Egypt 39 million, and Kenya 20 million.

Growth Drivers

The expansion of electronic payments has been driven by:

• Fintech Innovation: Mobile apps, internet banking, and USSD platforms enabling wider access.

• Increased PoS Adoption: Rapid deployment of PoS terminals for retail and informal trade.

• Consumer Behaviour Shift: Growing preference for instant and traceable payment options.

• Regulatory Support: Policies promoting cashless transactions and financial inclusion.

EnterpriseNGR noted that digital platforms have revolutionised fund transfers, bill payments, and account management, becoming integral to everyday banking.

Outlook

Analysts say Nigeria’s continued investment in payment infrastructure and fintech innovation will further strengthen its position as Africa’s digital payments hub. With transaction volumes growing at double-digit rates, the cashless economy is set to play a pivotal role in driving financial inclusion and supporting economic stability.