Nigeria has emerged as a global leader in the transition away from cash usage, with digital payments and fintech innovations driving a significant decline in cash transactions. According to a recent report from Worldpay, cash transactions in Nigeria plummeted by 59% between 2014 and 2024, marking the most substantial drop among seven major economies where cash has traditionally been dominant.
The shift away from cash in Nigeria is expected to continue, with the report predicting that cash usage will reach 32% by 2030 as digital payment methods continue to rise. One of the pivotal moments in Nigeria’s move away from cash was the Central Bank of Nigeria’s (CBN) 2023 naira redesign policy. While this policy aimed to combat cash hoarding and illicit financial practices, it inadvertently caused a severe cash shortage, with currency circulation dropping by 29.2% to just ₦982.1 billion in February 2023.
In response to the cash shortage and the increasing demand for digital payment solutions, fintech companies like OPay and PalmPay emerged as key players in Nigeria’s financial landscape. These platforms offered efficient and seamless digital payment services, gaining widespread popularity and transforming how financial transactions are conducted in the country.
"Nigerians are increasingly embracing non-cash transactions," noted Uchenna Uzo, a marketing professor at Lagos Business School. Data from the Nigeria Inter-Bank Settlement System (NIBSS) further supports this trend, showing a significant surge in electronic transaction volumes from 793 million in 2018 to 11.3 billion in 2024—a remarkable 1,514.2% increase.
While cash is still used in Nigeria, its dominance has significantly declined. In 2019, cash transactions accounted for 91% of all payments, a figure that has now dropped to less than half. The rise of mobile technology has played a crucial role in Nigeria’s financial transformation, providing millions of people with access to digital banking and payment services. With the increasing popularity of mobile wallets, fintech platforms, and digital banking solutions, Nigeria is steadily establishing itself as a global leader in the transition to a cashless economy.
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