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Nigeria is experiencing a rapid transition toward digital payments, with cash transactions expected to decrease by 32% by 2030, according to WorldPay’s Global Payment Report 2025.
Declining Cash Dependency in Nigeria
The report, which examines payment trends across 40 global markets, highlights a global decline in cash usage. While no country remains predominantly cash-based, Nigeria, alongside Colombia, Indonesia, Mexico, and the Philippines, continues to see significant reliance on physical currency due to large underbanked populations.
Nigeria Leads Cash Usage in the MEA Region
Despite a significant reduction in cash transactions, Nigeria remains one of the highest cash-dependent countries in the Middle East and Africa (MEA) region. In 2024, 40% of Nigeria’s point-of-sale (PoS) transactions were cash-based—a sharp drop from 91% in 2019. However, the country still exceeds other key MEA markets in cash usage:
- Saudi Arabia: 22% cash transactions
- South Africa: 30%
- United Arab Emirates (UAE): 17%
Nigeria has made considerable progress in financial inclusion, with the percentage of banked individuals rising from 30% in 2011 to 45% in 2021, according to the World Bank. However, it still lags behind South Africa, where 85% of the population had access to banking services in the same period.
Digital Payment Innovations Driving Growth
The adoption of digital payment solutions is fueling Nigeria’s shift toward a cashless economy. A key factor in this transition is the rise of account-to-account (A2A) transfers through the NIBSS Instant Payment (NIP) system, which has become the dominant payment method for e-commerce transactions. Additionally, Nigeria Quick Response (NQR), a QR-based payment system, has emerged as the second most preferred PoS payment option after cash.
Record Surge in Digital Transactions
The increasing preference for digital payments is reflected in the unprecedented growth of electronic transactions:
- Total electronic payment transactions reached ₦1.07 quadrillion in 2024, marking a 79.6% surge from ₦600 trillion in 2023.
- E-payment transactions processed by NIBSS climbed 15.5% year-on-year, from 9.7 billion in 2023 to 11.2 billion in 2024.
- PoS transactions soared to ₦19.4 trillion in 2024, an 81% increase from ₦10.73 trillion in 2023.
Outlook for Nigeria’s Cashless Future
WorldPay’s report underscores a significant transformation in Nigeria’s payment landscape. In 2014, digital payments accounted for just 1% of PoS transaction value. By 2024, this figure had risen to one-third of the market. By 2030, digital payments are projected to represent 47% of PoS transactions, rivaling cash and card payments combined.
As Nigeria continues its journey toward a cashless economy, regulatory technology solutions, fintech innovations, and compliance-driven digital finance strategies will play a crucial role in ensuring seamless financial transactions. With the expansion of instant payment systems, QR-based solutions, and compliance automation, the country is set to redefine its financial ecosystem in the coming years.
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