Nigeria: Surge in E-Payment Value Hits ₦317.2 Trillion in Q1 2025, Signaling Shift from Cash Transactions

Nigeria’s digital payment landscape is witnessing a significant transformation, as recent data indicates a continued shift away from cash-based transactions. According to the latest report from the Nigeria Inter-Bank Settlement System (NIBSS), the total value of electronic payment transactions rose by 24% year-on-year (YoY), reaching ₦317.2 trillion in the first quarter of 2025 (Q1’25), compared to ₦255.69 trillion in Q1’24.

The NIBSS Instant Payment (NIP) system remained the dominant channel, recording a 21.5% YoY increase in transaction value to ₦285 trillion from ₦234.49 trillion in the same period last year.

Mobile Money Operations (MMOs) also saw notable growth, with the value of transactions climbing 20.3% to ₦20.7 trillion in Q1’25, up from ₦17.2 trillion in Q1’24.

Other highlights from the report include:

• Automated Clearing House (ACH): Up 39% YoY to ₦14.13 billion from ₦10.16 billion.

• Cheque Transactions: Increased by 31.4% to ₦886.8 billion from ₦855.34 billion.

• Point-of-Sale (PoS): Recorded the highest growth rate, surging by 301.5% to ₦10.52 trillion from ₦2.62 trillion.

However, some channels experienced sharp declines:

• NIBSS Direct Debit (NDD): Fell by 58.6% to ₦3.38 billion from ₦8.18 billion.

• eBillsPay: Dropped significantly by 84.4% to ₦78.27 billion from ₦501.8 billion.

• NQR Code Transactions: Declined 72% to ₦100.09 billion from ₦358.73 billion.

Despite the impressive growth in value, the total volume of electronic payment transactions decreased by 17.3% YoY, falling to 4.4 billion from 5.32 billion transactions in Q1’24. This dip is attributed to declining activity across seven key e-payment channels during the quarter.

Notably, PoS transactions defied this trend, with volume increasing by 147.4% to 776.94 million in Q1’25 from 314.03 million in Q1’24—underscoring growing retail-level adoption of cashless payments.

The data reflects the deepening digital finance ecosystem in Nigeria, as consumers and businesses increasingly prioritize convenience, speed, and efficiency over traditional cash handling.