Nigeria Leads Global Shift Away from Cash as Digital Payments Surge
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Nigeria has experienced the sharpest decline in cash usage globally, fueled by the rapid adoption of digital payments and fintech-driven innovations, according to a new report by Worldpay.
Between 2014 and 2024, cash transactions in Nigeria dropped by 59%, the steepest decline among seven major economies where cash has traditionally dominated. The Philippines recorded a 43% decline, followed by Indonesia (44%), Mexico (41%), Japan (31%), Germany (24%), and Colombia (22%).
The study, which examined 40 global markets covering 88% of the world’s GDP, forecasts that cash usage in Nigeria will continue its downward trajectory, falling to 32% by 2030 as digital payment alternatives take center stage.
CBN Policies and Fintech Disruption Accelerate the Shift
One of the key turning points in Nigeria’s transition away from cash was the Central Bank of Nigeria’s (CBN) 2023 naira redesign policy, which aimed to reduce cash hoarding and combat illicit financial activities. However, the policy resulted in a severe cash shortage, causing currency circulation to plummet by 29.2%, reaching just ₦982.1 billion in February 2023—the lowest level in over a decade.
As traditional banks struggled to cope with increased online transaction demands, fintech firms like OPay and PalmPay emerged as key players, offering seamless and efficient digital payment solutions. These platforms quickly gained popularity, reshaping how Nigerians conduct financial transactions.
“Nigerians are increasingly embracing non-cash transactions,” noted Uchenna Uzo, a marketing professor at Lagos Business School.
The Rise of Digital Transactions
Data from the Nigeria Inter-Bank Settlement System (NIBSS) highlights the country’s massive shift toward digital payments. Electronic transaction volumes surged by 1,514.2%, growing from 793 million in 2018 to an impressive 11.3 billion by 2024.
While Nigeria remains a country where cash is widely used, its dominance has diminished significantly. In 2019, cash transactions accounted for 91% of all payments—a figure that has now fallen to less than half.
A Cashless Future on the Horizon
Mobile technology has been identified as a key driver of Nigeria’s financial transformation, enabling millions of people to access digital banking and payment services with ease. As mobile wallets, fintech platforms, and digital banking continue to gain traction, Nigeria is positioning itself as a global leader in the transition toward a cashless economy.
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