Nigeria’s shift towards a cashless economy is gaining momentum, with digital payments transforming the way businesses operate in the country. Recent data reveals that Nigeria processed 7.9 billion real-time transactions in 2024, making it Africa’s leading real-time payments market. This trend is expected to continue, with projections indicating that real-time payments could reach 50.1% of all transactions by 2028.
The growth of digital payments in Nigeria is backed by hard numbers. In the first quarter of 2025, electronic payment transactions reached ₦284.99 trillion, a 17.7% increase from the same period in 2024. Point-of-sale (PoS) payments alone reached ₦10.45 trillion, more than double the amount recorded in the previous year. The number of active PoS terminals in Nigeria has also increased, from 5.5 million in January 2025 to 5.9 million in March 2025.
The Central Bank of Nigeria (CBN) has reported a significant increase in electronic payment volumes, from 3.9 billion in August 2024 to 4.12 billion in July 2025. This growth is attributed to the increasing adoption of digital payment channels. The number of Nigerians holding formal bank or wallet accounts has also risen, with 66.2 million BVN-linked bank account holders reported in August 2025.
The rise of digital payments has had a positive impact on the economy, with real-time payments contributing around US$7 billion to Nigeria’s GDP in 2023. This figure is expected to grow to US$15 billion by 2028. The growth of digital payments has also improved cash flow and reduced operational risk for businesses, particularly small and medium-sized enterprises (SMEs).
However, the rapid growth of digital payments also poses challenges, including network pressures and fraud concerns. To address these issues, stronger authentication, better user education, and tighter monitoring are necessary. Despite these challenges, the data indicates that Nigeria is moving steadily towards a cash-light economy, with real-time payments at the center of this shift.
The significance of this trend cannot be overstated. As Nigeria continues to adopt digital payments, it is likely to have a profound impact on the economy and the way businesses operate. With the right infrastructure and regulations in place, digital payments have the potential to improve financial inclusion, reduce poverty, and drive economic growth. As the country moves forward, it is essential to address the challenges associated with digital payments and ensure that the benefits are equitably distributed.