Nigeria recorded the steepest decline in cash transactions to surpass six cash-reliant economies in the past decade thanks to the rapid adoption of digital payments and rising fintech partnerships, according to a report by global payment processing company Worldpay.
From 2014 to 2024, cash transactions in Nigeria fell by 59%, the largest drop among the seven major economies analysed. The Philippines followed with a decline (43%), while Indonesia (44%), Mexico (41%), Japan (31%), Germany (24%), and Colombia (22%) also saw drops in cash usage.
The decline comes as electronic transactions hit record highs in Nigeria, driven by increased partnerships between banks and fintech companies to promote digital payments. The report—which analysed 40 markets representing 88% of global GDP—projects that cash usage in Nigeria will drop further to 32% by 2030 as digital payment adoption continues to grow.
Digital payments in Nigeria surged in 2023, fueled by the Central Bank of Nigeria’s naira redesign policy aimed at curbing cash hoarding and money laundering. However, the controversial policy led to severe cash shortages, causing a 29.2% drop in currency circulation to ₦982.1 billion by February 2023—the lowest since 2008.
As traditional banks struggled to manage the spike in online transactions, fintech companies like OPay and PalmPay seized the moment, offering reliable alternatives for money transfers and bill payments and emerging as the biggest winners of the cash crunch.
“Nigerians now have an increasing appetite for non-cash transactions,” said Uchenna Uzo, a professor of marketing at Lagos Business School.
Data from the Nigeria Inter-Bank Settlement System (NIBSS) shows that the volume of electronic transactions surged by 16-fold (1,514.2%) between 2018 and 2024, rising from 793 million to 11.3 billion respectively.
The Worldpay report noted that while Nigeria remains a cash-heavy economy, the rate of cash has slashed by more than half from 91% since 2019, noting that “Mobile devices are playing a central role in the transformation.”
According to Enhancing Financial Innovation & Access (EFInA), the financial inclusion rate rose to 64% in 2023 from 56% in 2020. In November 2024, the Central Bank of Nigeria projected the 2023 rate to increase to 80% by 2026.
“Collectively, these innovations streamline payment processes, reduce reliance on cash, and improve the overall efficiency of financial transactions in Nigeria,” said analysts at Euromonitor International in a recent report.
Fueled by fintech partnerships and innovation, Nigeria is rapidly solidifying its position as the dominant digital finance powerhouse in Africa. If the current pace holds, the country won’t just lead the continent in financial inclusion, it will set a blueprint for the future of money in Africa.
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