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Electronic payments in Nigeria grew by 24.4 percent year-on-year to N295.5 trillion in the first quarter of 2025, new statistics from the Nigeria Interbank Settlement System have shown.
This underscored the growing reliance on digital payments in the country. Cashless payments grew to N295 trillion from N237.11 trillion in Q1 of 2024.
BusinessDay analysis of the data revealed that electronic payment channels were used 2.21 billion times in Q1, while point of sale (PoS) terminals recorded 776.94 million usage.
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The NIBSS records cashless transactions from the Nigeria Instant Payment System and PoS terminals. The total value of instant payments in Q1 was N285 trillion, and PoS transactions were N10.52 trillion.
“Payment methods have become easier, faster, and better, and people are using them for everyday things,” said Adedeji Olowe, founder of Lendsqr.
“Everyone from small kiosks to supermarkets now accepts transfers. If I go downstairs where I live, I can buy something worth N1,000 and pay with transfers,” Olowe stated.
He said this indicates a maturing payment landscape in which real-time transfers are becoming a more accepted form of payment in an economy striving to reduce its reliance on physical cash.
According to a report by ACI Worldwide, the volume of real-time payment transactions will hit 19.7 billion by 2028, up from the 7.9 billion recorded in 2023.
The report published by ACI Worldwide, titled ‘Prime Time for Real-Time Global Payments,’ tracked real-time payment volumes and growth across 51 countries with a deep dive into India, Brazil, Indonesia, Malaysia, and the Netherlands.
“In Nigeria, real-time payments are quickly becoming a viable alternative to cash, historically the dominant choice for payments in the country,” ACI said.
This discovery has shown that Nigeria has cemented its position as Africa’s most advanced digital payments economy, recording 7.9 billion real-time transactions in 2024, according to EnterpriseNGR.
This figure represents 2.97 percent of the global total of 266.2 billion transactions, placing Nigeria in the league of digital payment powerhouses such as India, Brazil, Thailand, China, and South Korea.
It said Nigeria’s 7.9 billion transactions significantly outpaced other African economies. South Africa recorded 284 million transactions, while Egypt and Kenya saw 39 million and 20 million, respectively.
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The report highlighted how mobile banking, internet banking, and USSD have revolutionised financial access and service delivery in Nigeria. From fund transfers and bill payments to account management, digital platforms have become integral to everyday banking.
“The use of PoS terminals, mobile apps, and web platforms has expanded significantly,” EnterpriseNGR noted, attributing the growth to fintech innovation and a shift toward technology-driven business models among financial institutions.
