Electronic Payments in Nigeria surged to ₦284.99 trillion in the first quarter of 2025, marking a 17.7% increase compared to the same period in 2024. This milestone confirms the country’s accelerating shift away from cash as Nigerians increasingly adopt digital transaction channels.
At the same time, the number of functional ATMs dropped to 16,714, as users continue to abandon them due to high withdrawal fees, frequent breakdowns, and long queues. Instead, mobile apps and Point-of-Sale (POS) terminals are becoming the preferred options for daily payments.
POS usage has seen explosive growth, with transactions reaching ₦10.45 trillion in Q1 2025, a 209% year-over-year jump. This shift has been powered largely by fintech firms such as OPay, which have made digital payments more seamless and accessible across Nigeria’s cities.
The trend reflects the long-term impact of the Central Bank of Nigeria’s cashless policy, first introduced in 2012. By Q2 2025, this digital transformation had contributed ₦7.37 trillion to Nigeria’s GDP, showing just how central electronic payments have become to the nation’s economy.
However, challenges remain. Many rural and unbanked communities continue to face barriers such as poor internet connectivity, limited agent networks, and low financial literacy. Experts note that while the growth of electronic payments in Nigeria is impressive, closing this gap is crucial to ensuring financial inclusion for all.
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