The Nigeria Inter-Bank Settlement System (NIBSS) has reported that cashless transactions in Nigeria rose significantly to N295 trillion in the first quarter of 2025, marking a substantial increase from N237.11 trillion recorded in the same period of 2024.
This growth coincides with a remarkable expansion in banking penetration, as the number of active bank accounts in the country surged to 320 million within the same timeframe, according to NIBSS's latest financial sector report.
Digital Payment Adoption Accelerates
The comprehensive report highlights the increasing reliance on digital payment solutions across Nigeria. Electronic payment channels were utilized 2.21 billion times during the first quarter, while Point-of-Sale (PoS) terminals recorded 776.94 million transactions, demonstrating the growing shift away from cash-based transactions.
These findings align with projections from ACI Worldwide, which predicts that Nigeria's real-time payment transaction volume will reach 19.7 billion by 2028, a significant increase from 7.9 billion in 2023.
"In Nigeria, real-time payments are quickly becoming a viable alternative to cash, historically the dominant choice for payments in the country," ACI noted in its assessment of the Nigerian financial landscape.
Implications for Nigeria's Economy
The rapid growth in cashless transactions represents a fundamental shift in Nigeria's financial ecosystem. This transition is being driven by improved digital infrastructure, increased smartphone penetration, and government policies aimed at reducing cash dependency.
Financial experts suggest that this trend could lead to greater financial inclusion, reduced transaction costs, and improved transparency in the Nigerian economy. The expansion of active bank accounts to 320 million also indicates that more Nigerians are being integrated into the formal financial system.
As digital payment adoption continues to accelerate, industry stakeholders anticipate further innovations in Nigeria's fintech space, potentially positioning the country as a leader in digital financial services across Africa.
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