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Data from the Nigeria Inter-Bank Settlement Systems (NIBSS) shows that licensed mobile money operators, including Palmpay, OPay, and 15 others, processed transactions worth N41.5 trillion between January and July 2024. This marks a 74% increase from the N23.9 trillion recorded during the same period last year.
In 2023, mobile money operators processed transactions valued at N46.6 trillion, the highest annual figure recorded in the country’s mobile money sector. With N41.5 trillion already recorded within the first seven months of 2024, the industry is on track to surpass last year’s record in transaction value.
The Central Bank of Nigeria (CBN) recently directed fintech companies like OPay, Palmpay, Paga, Moniepoint, and Kuda Bank to halt onboarding new customers amid concerns that some platforms were being used for illegal foreign exchange transactions via cryptocurrency trading. This suspension was lifted after about a month, allowing operations to continue.
The surge in mobile money transactions mirrors the broader growth in Nigeria’s electronic payment systems. NIBSS data shows that from January to July 2024, transactions across all electronic channels totaled N566.3 trillion, nearing the N600 trillion recorded for the entire year of 2023, with five months still remaining.
Analysts attribute this surge to the recent cash shortages and the CBN’s cashless policy, which has further pushed digital payments. Under the revised cashless policy, which came into effect on January 9, 2023, individual cash withdrawals are capped at N500,000 per week, while corporate entities are limited to N5 million. This policy has driven more Nigerians toward mobile and electronic payment platforms, fueling the significant rise in transaction volumes.
This trend highlights the growing shift towards digital financial services in Nigeria and underscores the mobile money sector’s pivotal role in driving the country’s cashless economy forward.
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