Nigeria’s E-Payment Boom: Transactions Hit Record N1.07 Quadrillion in 2024


A Digital Milestone for Nigeria’s Economy

Nigeria’s financial landscape has reached a historic milestone, as electronic payment transactions hit an unprecedented N1.07 quadrillion in 2024. This marks the first time the country’s digital payment ecosystem has crossed the quadrillion threshold, reflecting a remarkable 79.6% increase from the N600 trillion recorded in 2023.

The data, released by the Nigeria Inter-Bank Settlement System (NIBSS), highlights the continued dominance of NIBSS Instant Payment (NIP) as the preferred method of financial transactions. The highest transaction volume was recorded in December, likely driven by holiday spending, year-end business settlements, and increased financial activities.


Implications for Nigeria’s Economy

The surge in e-payment transactions has significant implications for Nigeria’s economy, influencing multiple sectors:

1. Growth in Digital Economy

The exponential increase in electronic transactions underscores Nigeria’s transition towards a cashless economy. More businesses and individuals are adopting digital payments, reducing reliance on cash and fostering financial inclusion.

2. Improved Financial Transparency

Higher e-payment adoption minimizes cash-based transactions, making financial activities more traceable. This reduces corruption, money laundering, and illicit financial flows, strengthening economic governance.

3. Increased Revenue for Banks and Fintechs

Banks and financial technology (fintech) companies are major beneficiaries of this surge. Transaction fees, service charges, and digital banking products contribute to their revenue growth, encouraging further innovation in the sector.

4. Enhanced Economic Efficiency

Faster and more reliable digital transactions improve business operations, enhance customer convenience, and streamline government financial activities. This leads to better productivity and economic expansion.

5. Inflation and Monetary Policy Impact

While digital payments enhance economic efficiency, they also increase liquidity in the financial system. If not managed properly, this could contribute to inflationary pressures, requiring proactive monetary policies from the Central Bank of Nigeria (CBN).


Challenges and Areas for Improvement

Despite this impressive growth, some challenges persist in Nigeria’s e-payment ecosystem:

1. Network and Infrastructure Issues

Frequent downtime in banking apps and mobile transactions remains a major concern. Strengthening digital infrastructure and improving server reliability will enhance the user experience.

2. Cybersecurity Risks

With increased digital transactions comes a higher risk of fraud, hacking, and phishing attacks. Banks and fintechs must invest in stronger cybersecurity measures and public awareness campaigns to protect users.

3. High Transaction Costs

Many Nigerians still complain about high service charges for electronic transactions. Regulatory intervention may be needed to ensure fair pricing and wider adoption.

4. Digital Literacy and Inclusion

While urban areas are embracing digital payments, rural communities still face challenges due to low digital literacy and limited internet access. Expanding financial education and rural connectivity is crucial.


Strategies to Sustain and Improve E-Payment Growth

To build on this momentum and further enhance Nigeria’s e-payment system, the following strategies should be considered:

1. Strengthening Payment Infrastructure

Banks and fintech firms must invest in more robust digital infrastructure to handle increasing transaction volumes without frequent downtime.

2. Enhancing Cybersecurity Measures

The government and private sector should collaborate on cybersecurity frameworks, implement stricter regulations, and educate the public on fraud prevention.

3. Expanding Financial Inclusion

Efforts should be made to extend digital banking services to underserved communities, including deploying more mobile banking agents and reducing transaction costs.

4. Encouraging Regulatory Support

The CBN and other financial regulators should continue refining policies that promote innovation while ensuring consumer protection and financial stability.

5. Promoting Fintech Innovation

Encouraging more fintech startups and fostering competition in the industry will drive down transaction costs, improve service quality, and expand digital financial services.


Nigeria’s e-payment revolution is a testament to the country’s growing digital economy. The record-breaking N1.07 quadrillion in transactions is not just a milestone but a stepping stone toward a more advanced, cashless financial system. By addressing infrastructure gaps, enhancing security, and promoting financial inclusion, Nigeria can sustain this momentum and further strengthen its position as a leader in Africa’s digital payments landscape.


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