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According to a new report by Worldpay, Nigeria has emerged as the global frontrunner in reducing cash dependency, driven by the widespread adoption of digital payments and fintech innovations.
Nigeria Records Sharpest Global Decline in Cash Transactions
Between 2014 and 2024, cash transactions in Nigeria fell by 59%, marking the steepest decline among major economies where cash has traditionally been dominant. Other notable reductions include:
- Philippines: 43% decline
- Indonesia: 44% decline
- Mexico: 41% decline
- Japan: 31% decline
- Germany: 24% decline
- Colombia: 22% decline
The study, which analyzed 40 global markets representing 88% of the world’s GDP, forecasts that cash transactions in Nigeria will continue to decrease, reaching just 32% by 2030, as digital payment solutions become mainstream.
CBN Policies and Fintech Disruption Accelerate Cashless Adoption
A major catalyst in Nigeria’s transition to digital payments was the Central Bank of Nigeria’s (CBN) 2023 naira redesign policy, aimed at reducing cash hoarding and combating illicit financial activities. However, the policy inadvertently triggered a severe cash shortage, leading to a 29.2% drop in currency circulation, with cash in circulation plummeting to ₦982.1 billion in February 2023—the lowest level in over a decade.
As traditional banks struggled to manage the surge in online transaction demand, fintech firms such as OPay and PalmPay stepped in to offer seamless and efficient digital payment solutions. These platforms have reshaped financial transactions in Nigeria, making digital payments more accessible to individuals and businesses.
Surge in Digital Transactions
Data from the Nigeria Inter-Bank Settlement System (NIBSS) underscores Nigeria’s significant shift toward digital payments:
- Electronic transaction volumes surged by 1,514.2%, growing from 793 million in 2018 to 11.3 billion in 2024.
- Cash transactions, which accounted for 91% of all payments in 2019, now represent less than half.
Nigeria’s Cashless Future
Mobile technology has been a game-changer in Nigeria’s financial ecosystem, enabling millions to access digital banking and payment services effortlessly. The rise of mobile wallets, fintech platforms, and digital banking solutions is positioning Nigeria as a global leader in the cashless economy movement.
With continued regulatory oversight, compliance automation, and fintech-driven financial solutions, Nigeria is set to strengthen its digital finance landscape, fostering financial inclusion and driving economic growth.
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