- Nigeria’s e-payment transactions hit an all-time high of N1.07 quadrillion in 2024
- The figure represents a 79.6 per cent increase from N600 trillion recorded in 2023
- The Central Bank of Nigeria’s cashless policy and cash withdrawal limits played a role in the increase
The Nigeria Inter-Bank Settlement System (NIBSS) says electronic payment transactions in Nigeria surged to an all-time high of N1.07 quadrillion in 2024, the first time to hit the quadrillion mark.
According to data released by NIBSS, the figure stood at $702.6 billion in dollar terms based on the closing exchange rate of N1,535/$1 on December 31, 2024.
The value recorded on the NIBSS Instant Payment (NIP) represents a 79.6 per cent increase over the N600 trillion recorded in 2023.
The data also shows that though e-payment increased steadily throughout the 12 months of 2024, the highest value of N115.1 trillion was recorded in December due to increased spending during the festive season.
The December 2024 figure was also the all-time highest monthly record on the NIBSS electronic payment platform.
Transactions volume hit 11.2 billion in 2024
The data also shows that the volume of transactions processed by the NIBSS in 2024 increased from 9.7 billion in 2023 to 11.2 billion in 2024.
The increase represents a 15.5 per cent increase in the volume of electronic transactions year-on-year.
Role of CBN’s cashless policy, cash withdrawal limits
The surge in the value and volume of e-payment transactions in Nigeria in 2024 is not unconnected to the recent cash crunch and the cashless policy of the Central Bank of Nigeria (CBN), which limited the amount of cash that can be withdrawn daily and weekly.
According to the CBN’s revised cashless policy, which became effective on January 9, 2023, cash withdrawal by an individual is limited to N500,000 a week, while corporate organisations have N5 million withdrawal limit in a week.
In December 2024, the CBN limited the amount of cash to be withdrawn via Point-of-Sale (PoS) terminals to N100,000 daily and N500,000 weekly.
The directive aimed to ensure cash availability, especially during the festive season, prevent cash hoarding and halt the illicit flow of minted banknotes to currency hawkers and economic agents that commodify naira banknotes.
Already, banks have begun implementing the directive, even as the CBN fined nine banks N150 million each for failing to make cash available via their Automated Teller Machines (ATMs).
With growth of digital payment in Nigeria, is cash still king?
Meanwhile, TheRadar earlier reported that the value of digital transactions increased 47.4 times between 2013 and 2023 to reach N657.8 trillion from N13.9 trillion, representing an average monthly figure of N54 trillion over the 10 years.
With the growth in digital transactions, driven by Nigeria’s young demographic, fintech innovations, and the policies of the Central Bank of Nigeria, one wonders if cash is still king.