Nigeria is at the forefront of a global transition away from cash, experiencing the steepest decline in cash usage worldwide, according to a new report from Worldpay.
Between 2014 and 2024, cash transactions in Nigeria plummeted by 59%, the largest drop among major economies where cash has traditionally dominated. Comparatively, the Philippines recorded a 43% decrease, Indonesia 44%, Mexico 41%, Japan 31%, Germany 24%, and Colombia 22%.
The report, which examined 40 global markets accounting for 88% of the world’s GDP, forecasts that cash usage in Nigeria will continue its downward trend, falling to just 32% by 2030 as digital payment methods gain even more traction.
The Turning Point: CBN’s Naira Redesign Policy
One of the biggest catalysts in Nigeria’s rapid shift away from cash was the Central Bank of Nigeria’s (CBN) 2023 naira redesign policy. The initiative aimed to curb cash hoarding and combat illicit financial activities. However, it inadvertently triggered a nationwide cash shortage, causing the amount of currency in circulation to drop by 29.2% to just ₦982.1 billion in February 2023—the lowest level recorded in over a decade.
As traditional banks struggled to meet the rising demand for digital transactions, fintech firms like OPay and PalmPay emerged as key players, providing seamless and efficient digital payment solutions. Their rapid adoption has significantly altered the country’s financial landscape.
A Digital Revolution in Nigeria’s Financial Sector
“Nigerians are increasingly embracing non-cash transactions,” said Uchenna Uzo, a marketing professor at Lagos Business School.
Data from the Nigeria Inter-Bank Settlement System (NIBSS) underscores this shift. The country has witnessed an extraordinary surge in electronic transactions, with volumes skyrocketing by 1,514.2%—rising from 793 million in 2018 to an astounding 11.3 billion by 2024.
Although cash remains widely used, its dominance has declined significantly. In 2019, cash transactions accounted for 91% of all payments. Today, that figure has dropped to less than half, reflecting a significant behavioral shift among Nigerian consumers and businesses.
The Role of Mobile Technology in Nigeria’s Cashless Economy
Mobile technology has been a driving force behind this financial evolution, making digital banking and payments more accessible to millions. With the increasing adoption of mobile wallets, fintech platforms, and digital banking services, Nigeria is steadily positioning itself as a global leader in the cashless economy movement.
As digital payments continue to rise, Nigeria is not just adapting to global trends—it is setting the pace for financial innovation and inclusion across Africa and beyond.
