The scarcity of naira caused by the Central Bank of Nigeria’s redesign and cash‑withdrawal policy pushed point‑of‑sale (PoS) transactions to N807.16 bn in January 2023, a 40.69 % year‑on‑year increase from the N573.72 bn recorded in January 2022. New data from the Nigeria Inter‑Bank Settlement System (NIBSS) show that total cashless transactions in Nigeria rose by 45.41 % year‑on‑year to N39.58 tn in the same month. NIBSS monitors cashless activity through the Nigeria Instant Payment System (NIPS) and PoS terminals; total NIPS transactions grew by 45.52 % from N26.65 tn in January 2022 to N38.77 tn in January 2023. The use of electronic channels increased by 45.50 % year‑on‑year, climbing from 438.48 million to 638 million transactions during the period under review.
As of January 2022, there were 955,234 PoS terminals deployed across the country. In 2022, the CBN announced a naira redesign, withdrawal limits, and a push for Nigerians to adopt electronic transaction methods. The bank stipulated a maximum weekly cash‑withdrawal limit of N500,000 for individuals and N5 m for corporate organisations, urging customers to use alternative channels such as internet banking, mobile banking apps, USSD, cards/PoS, eNaira, and others. The CBN’s Payments Vision 2025 (PSV 2025) projects a reduction in cash usage by 2025, aiming for a cashless, efficient electronic payment infrastructure that serves all economic sectors. The document notes that the “mobile‑first generation” will naturally slow cash use, and the CBN will continue to ensure the payments system supports financial inclusion, meets international standards, and contributes to national economic growth.
Implementation of the cashless policy was postponed from its initial 31 January deadline to 10 February, but the new deadline now hinges on a Supreme Court judgment that has restrained the Federal Government from enforcing it. Since the policy’s announcement, Nigerians have faced long ATM queues, difficulties buying naira, failed transactions, and problems with banks’ mobile applications. Banking halls have emptied as frustrated customers turn to alternative cash‑withdrawal methods, and riots have erupted in several states, with some banks being attacked.
Victor Olojo, National President of the Association of Mobile Money and Bank Agents in Nigeria, said the cashless policy has forced people to go digital, driving growth in PoS usage. “The cashless issue forced people to move to digital, to PoS. The policy contributed to that growth. People had to seek alternative channels aside from cash, so this is expected,” he explained, adding that merchants, businesses, and supermarkets also contributed to the surge. Regarding cash access for PoS operators, Olojo noted that many have shut down due to cash shortages, and those still obtaining cash are doing so through alternative sources such as marketplaces, filling stations, and pharmacies, often at a cost.
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