Nigeria’s Evolving Payment Ecosystem: Digital Transactions Surge as ATM Use Declines
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Nigeria’s financial landscape is undergoing a significant transformation, with digital payments gaining momentum while reliance on ATMs declines. In 2024, the country recorded approximately 50 million active payment cards, reflecting a steady increase in cashless transactions.
The number of operational ATMs has dropped to 16,714, down from 17,377 in late 2023. Despite this decline, ATM transaction volumes saw a slight uptick, reaching 496 million in the first half of 2024. However, the total value of these transactions fell by 10%, signaling a consumer shift towards alternative digital payment methods such as online transfers and Point of Sale (PoS) terminals.
In 2022, Nigeria had about 35 million active payment cards, with 36% of adults aged 15 and above owning a debit card. This number is expected to rise as the Central Bank of Nigeria continues its push for financial inclusion and cashless policies.
While ATM availability remains a challenge, with only 22,600 machines nationwide as of December 2023, experts estimate that around 60,000 ATMs are needed to meet demand. However, with the rapid adoption of digital banking, mobile payments, and fintech solutions, Nigeria’s payment ecosystem is moving towards a more seamless and technology-driven future.
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