New data from the Nigerian Interbank Settlement System reveals a dramatic shift in payment preferences among Nigerians, with electronic payment transactions growing by 24 per cent year-on-year to reach N317.2 trillion in the first quarter of 2025.
This marks a significant increase from the N255.69 trillion recorded in the same period last year, signaling a continued move away from cash transactions.
The NIBSS Instant Payment platform maintained its dominant position, processing N285 trillion worth of transactions in Q1 2025, representing a 21.5% increase from the N234.49 trillion recorded in Q1 2024. Mobile Money Operations also showed strong growth, with transaction values rising 20.3% to N20.7 trillion from N17.2 trillion in the previous year.
Perhaps most strikingly, Point of Sale transactions experienced explosive growth, surging by 301.5% to N10.52 trillion from N2.62 trillion, demonstrating its increasing importance as a cashless payment option.
Cheque transactions, while often considered a traditional payment method, still grew by 31.4% to N886.8 billion, while Automated Clearing House transactions increased by 39% to N14.13 billion.
However, not all digital payment channels saw growth. The NIBSS Direct Debit system experienced a significant 58.6% decline in transaction value, falling to N3.38 billion. Similarly, eBills Pay transactions plummeted by 84.4% to N78.27 billion, and NQR code transactions dropped 72% to N100.09 billion.
While the value of electronic payments increased overall, the volume of transactions actually decreased by 17.3% to 4.4 billion in Q1 2025 from 5.32 billion in Q1 2024. This decline was observed across seven e-payment channels, with the notable exception of PoS transactions, which saw a 147.4% increase in volume to 776.94 million transactions.
This data paints a clear picture of Nigeria’s accelerating transition to a cashless economy, with consumers and businesses increasingly favoring digital payment methods.
The particularly strong performance of PoS transactions suggests growing comfort with in-person digital payments, while the continued dominance of NIP reflects the widespread adoption of instant bank transfers.
The declines in some digital channels may indicate shifting preferences among users toward more convenient or efficient payment options.
