The value of electronic transactions in Nigeria surged by 79% in 2024 compared to the previous year, reaching an unprecedented N1.08 quadrillion, according to recent data from the Nigeria Inter-Bank Settlement System on NIBSS Instant Payments.
NIP, an account-number-based, real-time interbank payment system developed by NIBSS in 2011, ensures instant transaction settlements for beneficiaries.
A closer look at the monthly data shows consistent growth in electronic transactions throughout 2024, starting at N72.11 trillion in January and peaking in the last quarter of the year.
Transactions climbed to N103.21 trillion in October, N109.53 trillion in November, and reached N115.12 trillion in December.
Even the lowest monthly figure recorded in January—N72.11 trillion—surpassed the monthly values from the previous year, reflecting a growing shift towards digital payments.
In terms of volume, electronic transactions also saw a 13.69% rise, increasing from 11.69 billion transactions in 2023 to 13.92 billion by the end of 2024.
The highest transaction volume was recorded in May, reaching 1.02 billion, while the lowest occurred in June, at 871.66 million.
The Central Bank of Nigeria revised its cash withdrawal policy effective January 9, 2023, increasing withdrawal limits for individuals and corporate entities across all payment platforms.
According to the apex bank, the policy aims to curb excessive cash circulation and promote electronic payments for transactions.
The CBN emphasized that the cashless initiative is designed to lower banking service costs, including credit charges, while enhancing financial inclusion.
Additionally, the policy aims to improve monetary policy efficiency in controlling inflation, stimulate economic growth, and offer more convenient transaction options.
Beyond economic benefits, the CBN highlighted that reducing cash transactions would also help combat crimes such as banditry, ransom-taking, and terrorism financing, while making banking services and credit more accessible at lower costs.
A recent survey by Enhancing Financial Innovation & Access indicated that financial inclusion in Nigeria has improved, though disparities persist.
According to the 2023 EFInA Access to Finance Survey, financial inclusion rose to 74%, up from 68% in 2020, leaving 26% of Nigerians still financially excluded.
The report pointed out ongoing gaps in financial access, particularly along gender, geographical, and age lines.
“Despite the growth in access, certain demographic gaps continue to persist in Nigeria. For instance, the gender gap: growth in women’s financial inclusion from 60 per cent in 2020 to 70 per cent in 2023, despite an increase in the gender gap from 8 per cent in 2020 to 9 per cent in 2023. Urban-rural gap: the gap decreased from 24 per cent in 2020 to 20 per cent in 2023. Youth (18-35): 71 per cent of financial inclusion was recorded in 2023. Northern Nigeria: despite growing access, including significant gains in the North-East and North-West, all states in the North-East report exclusion levels above the national average,” the report stated.
Despite progress in financial inclusion, there remains a need for targeted interventions to close the existing gaps and ensure broader access to formal banking services across all regions.
