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East Africa Frontline News

NextFrontier Africa is a media platform spotlighting Africa’s emerging opportunities in technology, tourism, aviation, agriculture, health, logistics, real estate, trade, education, and e-commerce.

March 24.2025

2 Minutes Read

Nigeria's Cash Usage Drops Dramatically: Digital Payments Surge Ahead

Close-up of hands exchanging Nigerian cash over patterned fabric.

Nigeria Sets a Global Precedent in Cash Decline

Nigeria's financial landscape is undergoing a seismic shift, as it recorded the largest drop in cash transactions globally, outpacing six prominent economies in just a decade. A report by the payment processing firm Worldpay highlights that cash transactions plummeted by an astonishing 59% from 2014 to 2024. This stark decline is indicative of an emergent trend toward digital payments, further accelerated by increasing partnerships between traditional banks and fintech enterprises.

Understanding the Drivers Behind This Transformation

As digital transactions continue to soar—skyrocketing 1,514.2% from 2018 to 2024—Nigerians are demonstrating a burgeoning inclination for cashless operations. This shift has largely been fueled by the Central Bank of Nigeria’s naira redesign policy aimed at combating cash hoarding, which, unexpectedly, led to a terrifying cash shortage across the nation. In the wake of these changes, fintech companies such as OPay and PalmPay have emerged, offering reliable online alternatives and deftly capturing the market share previously held by traditional banks.

The Future of Payments in Nigeria and Beyond

Looking ahead, the trajectory of cash usage in Nigeria suggests a continuation of this trend, as projections indicate it will further decrease to 32% by 2030. This transition isn't just significant for Nigeria; it offers a potential model for other cash-reliant economies aiming to modernize their payment infrastructures. With an enhanced financial inclusion rate jumping to 64% in 2023, the implication is clear: Nigeria stands poised to lead Africa’s financial revolution through technological innovation and enhanced transactional efficiency.

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Nigeria's Cash Usage Drops Dramatically: Digital Payments Surge Ahead

Nigeria Sets a Global Precedent in Cash Decline

Understanding the Drivers Behind This Transformation

The Future of Payments in Nigeria and Beyond

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