Alongside the increase in transaction value, the volume of e-payment transactions also saw significant growth. NIBSS data shows that 11.2 billion transactions were processed in 2024, up from 9.7 billion in 2023—representing a 15.5% year-on-year increase.
Lagos, Nigeria – Electronic payment transactions in Nigeria surged to an all-time high of N1.07 quadrillion in 2024, marking the first time the country’s e-payment system has crossed the quadrillion-naira threshold.
According to data released by the Nigeria Inter-Bank Settlement System (NIBSS), this figure represents a 79.6% increase from the N600 trillion recorded in 2023. In dollar terms, the total transaction value stood at approximately $702.6 billion, based on the closing exchange rate of N1,535/$1 as of December 31, 2024.
December Sees Highest Monthly Transactions
Throughout the year, e-payment transactions steadily increased, with December 2024 recording the highest monthly figure at N115.1 trillion. Analysts attribute this surge to the festive season, which typically sees a rise in consumer spending and financial transactions.
Transaction Volume Rises by 15.5%
Alongside the increase in transaction value, the volume of e-payment transactions also saw significant growth. NIBSS data shows that 11.2 billion transactions were processed in 2024, up from 9.7 billion in 2023—representing a 15.5% year-on-year increase.
Factors Driving E-Payment Growth
Industry experts link the rapid adoption of electronic payments to Nigeria’s cashless policy and the cash scarcity experienced in recent years. The Central Bank of Nigeria (CBN) implemented a revised cash withdrawal limit on January 9, 2023, restricting individuals to N500,000 per week and corporate entities to N5 million per week.
Financial analysts believe that this policy has encouraged more Nigerians to rely on digital payment methods.
“The non-availability of cash in banks has pushed many Nigerians to embrace cashless payments. Even when people need cash, they often resort to PoS operators, transferring money or using their debit cards,” said Lagos-based financial analyst Mr. Adewale Adeoye.
He noted that beyond the CBN restrictions, banks themselves have further limited cash withdrawals. “If you visit a bank today, they may only allow you to withdraw N5,000 over the counter. ATMs are often empty, forcing people to use PoS agents or mobile transfers,” he added.
Understanding the NIBSS Instant Payments (NIP) System
The NIBSS Instant Payments (NIP) system was introduced in 2011 as a real-time inter-bank payment platform. It allows instant transfers across various banking channels, including:
- Internet banking
- Bank branches
- Kiosks
- Mobile banking apps
- Unstructured Supplementary Service Data (USSD)
- Point-of-Sale (PoS) terminals
Automated Teller Machines (ATMs)
The increased adoption of digital payments in Nigeria is expected to continue as the country further embraces a cashless economy. With limited access to physical cash, more Nigerians are turning to mobile transfers, PoS transactions, and USSD payments as their preferred modes of financial transactions.
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