
The adoption of a cashless economy in Nigeria continues to deepen, as the value of electronic transactions surged by 79 percent in 2024, reaching an unprecedented N1.08 quadrillion, according to the latest data from the Nigeria Inter-Bank Settlement System (NIBSS).
The NIBSS Instant Payments (NIP) platform, an interbank real-time payment solution, has facilitated this growth, reflecting a significant shift toward digital financial transactions. An analysis of the data revealed that electronic transactions grew steadily throughout the year, starting at N72.11 trillion in January and peaking at N115.12 trillion in December.
January, which recorded the lowest monthly transaction value at N72.11 trillion, still outperformed all months in the previous year, indicating increased reliance on digital payment methods. Meanwhile, transaction volume also saw a substantial rise, growing by 13.69 percent from 11.69 billion transactions in 2023 to 13.92 billion in 2024. The highest volume of transactions occurred in May, with 1.02 billion transactions, while June recorded the lowest at 871.66 million.
The surge in electronic transactions aligns with the Central Bank of Nigeria’s (CBN) cash withdrawal policy, which was revised on January 9, 2023, to promote electronic payments and reduce reliance on physical cash. The policy aims to lower banking costs, improve financial inclusion, enhance monetary policy effectiveness, and reduce cash-related crimes such as ransom-taking and terrorism financing.

According to the 2023 EFInA Access to Finance Survey, financial inclusion in Nigeria rose to 74 percent, up from 68 percent in 2020. Despite this progress, 26 percent of the population remains financially excluded, highlighting the need for further digital financial expansion.
Speaking on the development, National President of the Association of Mobile Money and Bank Agents in Nigeria, Sarafadeen Fasasi, credited the rise in digital transactions to increased penetration of mobile money agents nationwide.
“Financial inclusion is about bringing the unbanked into the banking system and promoting digital transactions. More agents are reaching remote areas, helping people transition from cash-based transactions to digital payments,” Fasasi said. “Today, petty traders use agents to transfer money instead of sending cash through motor parks. This shift is increasing trust and visibility in digital financial services.”
Economist and sustainability expert Marcel Okeke also described the trend as a positive shift towards a cashless economy, though he cautioned against cybersecurity risks.
“The rise in electronic transactions is commendable, but authorities must strengthen cybersecurity measures. No system is error-proof, and failed transactions or cybercrime threats should be proactively managed,” Okeke noted.
Economic and financial analyst Rotimi Fakayejo further emphasized Nigeria’s leadership in electronic payments, stating, “Nigeria has one of the most effective e-payment systems in the world. Unlike in the U.S., where cash remains prevalent, Nigerians use digital payments for everything, from small purchases to large transactions. The naira scarcity in 2023 played a key role in increasing trust in electronic payments.”

As Nigeria continues to embrace digital finance, experts predict further growth in electronic transactions, driven by improved trust in the system, regulatory support, and expanding financial access points. However, challenges such as cybersecurity threats and financial exclusion still require ongoing attention to ensure the sustainability of a truly cashless economy.