Nigeria’s Digital Payment Surge: PoS Registrations Soar to 26.54 Million in Seven Months

The number of registered Point-of-Sale (PoS) terminals in Nigeria has surged to 26.54 million in the first seven months of 2024, according to new data from the Nigeria Inter-Bank Settlement System (NIBSS). This represents a 22.59 per cent increase from the 21.65 million terminals recorded in July 2023, underscoring the rapid expansion of digital payment platforms in the country.

The growth in PoS registrations highlights Nigeria’s ongoing shift towards cashless transactions, driven by government policies and private sector initiatives aimed at reducing reliance on physical cash. The surge has been consistent throughout the year, with January 2024 alone witnessing 3.44 million new registrations—a 48.5 per cent rise compared to 2.32 million in January of the previous year.

February saw a 50.9 per cent increase, with 3.61 million new PoS terminals registered, up from 2.39 million in February 2023. This upward trajectory continued into March, with a 47.0 per cent rise, reaching 3.73 million compared to 2.54 million the previous year. April recorded a significant jump, with 3.85 million new terminals registered, marking a 26.1 per cent year-on-year increase. By May, the growth stood at 22.4 per cent, with registrations reaching 3.88 million, up from 3.17 million in May 2023. June and July followed suit, with increases of 23.5 per cent and 24.0 per cent, respectively, reflecting the growing adoption of PoS technology across the nation.

In tandem with the rise in PoS registrations, Nigeria’s electronic transaction landscape has also witnessed an unprecedented boom. In July 2024 alone, Nigerians spent a record-breaking N89.50tn through electronic channels, marking an 89 per cent increase from N47.39tn in July 2023. This surge in digital transactions, processed via the NIBSS Instant Payment platform, represents the highest monthly transaction value ever recorded in the country.

The total value of electronic transactions between January and July 2024 has now reached N566.3tn, closing in on the N600tn recorded for the entire year of 2023. This shift towards digital payments is expected to continue, bolstered by collaborations such as the one between Zone Payment Network Limited (formerly Appzone) and NIBSS, which aims to enhance the efficiency of PoS transactions nationwide.

As Nigeria continues its transition to a cashless economy, the rapid growth in both PoS registrations and electronic transaction values signals a broader transformation in how financial services are accessed and utilised across the country.