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In 2024, Nigeria firmly cemented its position as Africa’s leading digital payments powerhouse, with electronic transactions soaring to an unprecedented N1.07 quadrillion, the first time the nation has crossed the quadrillion mark. At an official exchange rate of N1,535 to the US dollar as of 31 December 2024, this milestone translates to approximately US$702.6 billion, emphasising the country’s growing dominance in the fintech ecosystem. According to data from Proshare.co, this represents a staggering 79.6 percent increase from the N600 trillion recorded in 2023, reflecting a year of consistent growth in digital transaction volume and value. December 2024 alone witnessed the highest monthly figure ever recorded on the NIBSS platform, with Nigerians transacting N115.1 trillion through electronic channels during the festive period, traditionally marked by heightened consumer activity.
This surge also brought a corresponding rise in the volume of electronic transactions, which grew from 9.7 billion in 2023 to 11.2 billion in 2024, a 15.5 percent year-on-year increase. Nigeria’s progress in digital finance is anchored on the NIBSS Instant Payment platform, a real-time interbank system launched in 2011 that has since become deeply integrated across various banking channels such as mobile apps, USSD, internet banking, point-of-sale terminals, ATMs, and physical bank branches. The platform’s reliability, speed, and convenience have made it the preferred method for fund transfers, helping to accelerate nationwide adoption. This momentum has been further propelled by the Central Bank of Nigeria’s cashless policy framework, which continues to impose restrictions on cash-based transactions while actively encouraging the use of digital alternatives.
When placed in the context of Africa’s broader digital payments landscape, Nigeria’s rapid ascent sets it apart from other major economies on the continent. South Africa continues to leverage its advanced banking infrastructure and widespread access to contactless card payments, but it trails Nigeria in terms of transaction volume growth and digital policy momentum. Kenya, globally recognized for pioneering mobile money through M-Pesa, still leads in mobile-led financial inclusion but operates on a smaller scale due to population size and infrastructural spread. Egypt is experiencing its digital finance transformation, backed by strong government support and rising digital wallet adoption, although the pace of expansion remains measured compared to Nigeria’s robust push. Ghana has also emerged as a fintech frontier with notable progress in mobile money interoperability and digital access, though infrastructural and affordability barriers persist.
At the heart of Nigeria’s digital growth story is an ecosystem shaped by rapid innovation, increasing market demand, and a vibrant pool of fintech trailblazers such as Flutterwave, Moniepoint, Paystack, and Interswitch, all of which have attracted considerable global investment and scaled solutions across Africa.
Despite this remarkable progress, several challenges continue to impede deeper penetration of digital payments across the country. Limited internet access in rural areas, persistent electricity shortages, and low levels of digital literacy among certain demographics present hurdles that need deliberate policy and private-sector attention. Rising transaction volumes have also heightened exposure to fraud and cyber threats, making cybersecurity a growing priority for regulators and service providers alike. In addition, the high cost of certain digital transactions remains a deterrent for many low-income users, underscoring the need for more inclusive pricing models.
Reflecting on Nigeria’s digital transformation, the Minister of Communications, Innovation and Digital Economy, Dr. Bosun Tijani, recently remarked, “Our goal is to build a digitally empowered nation where innovation serves every citizen. We are not just transforming systems; we are redefining access, trust, and opportunity in the digital age.” This vision captures the spirit driving Nigeria’s fintech expansion, a determined push to ensure that technology is not only efficient and profitable, but also inclusive and empowering for all Nigerians.
