April 22, 2025/CSL Research
According to data from the Nigeria Inter-Bank Settlement System (NIBSS), electronic payment transactions in Nigeria reached a historic high of N1.07 quadrillion in 2024 — the first time the country has hit the quadrillion mark. In dollar terms, this amounts to approximately US$702.6 billion, based on the official exchange rate of N1,535/US$1 as of 31 December 2024. The surge represents a 79.6% increase from the N600 trillion recorded in 2023.
The rise reflects a consistent upward trend throughout the year, with the highest monthly transaction value recorded in December 2024 — a festive period marked by increased consumer spending. In that month alone, Nigerians transacted N115.1 trillion via electronic channels, marking the highest monthly figure ever recorded on the NIBSS platform. In addition to the value increase, the volume of electronic transactions also saw notable growth. NIBSS processed 11.2 billion transactions in 2024, up from 9.7 billion in 2023, representing a 15.5% y/y increase.
Nigeria’s digital payments landscape is poised for continued strong growth in 2025 and beyond, driven by increasing adoption and supportive regulatory policies. At the heart of this evolution is the NIBSS Instant Payment (NIP) platform—a real-time, account-based interbank payment system launched in 2011. Now deeply integrated into a wide range of banking channels, including internet banking, mobile apps, USSD, POS terminals, ATMs, and physical bank branches, NIP has emerged as the preferred method for funds transfers nationwide, thanks to its speed, reliability, and convenience. This growth has been further propelled by the Central Bank of Nigeria’s (CBN) cashless policies, which impose restrictions on cash transactions while actively encouraging the use of digital payment alternatives. Coupled with rising consumer demand for faster, more secure, and convenient financial services, these policies have played a key role in accelerating the adoption of electronic payments across the country.
Nigeria’s digital payment industry is on a strong growth trajectory, fuelled by rising market demand, progressive regulatory support, rapid technological advancement, and a vibrant fintech ecosystem. As a fintech powerhouse in Africa, Nigeria is home to trailblazing companies like Interswitch, Flutterwave and Paystack — companies that have attracted significant global investment and spurred innovation across the digital payments landscape.
The continued rise of fintech startups specializing in mobile money, payment gateways, and peer-to-peer (P2P) platforms is expanding payment options and fostering healthy competition.
Despite the sector’s impressive growth, several challenges persist. Limited internet access, unstable power supply, and low levels of digital literacy, particularly in rural communities, continue to impede broader adoption of digital payment solutions. Bridging these infrastructure and knowledge gaps will be vital to unlocking the industry’s full potential.
Cybersecurity also poses a critical concern, as the rise in digital transactions increases exposure to fraud and cyber threats. Enhancing security protocols and building user confidence will be essential to sustaining growth. Moreover, addressing high transaction costs and improving affordability will be key to boosting adoption among low-income users.
Click here to download full report: CSL Nigeria Daily – 22 April 2025 – E-Payments .pdf
