Global payment processing company Worldpay discovered that Nigeria showed the biggest decline in cash use which enabled the country to jump over six cash-dependent economies in the last ten years because of the quick spread of digital payments and growing fintech relationships.
Nigeria displayed the biggest cash transaction decline of 59% in the seven-economy study period between 2014 and 2024.
Among the analyzed countries the Philippines observed the second biggest cash decline (43%) after Nigeria (59%) followed by Indonesia (44%), Mexico (41%), Japan (31%), Germany (24%) and Colombia (22%).
The reduction in cash transactions occurs in parallel with rising electronic payments throughout Nigeria because of the development of partnerships among banks and fintech entities for digital payments.
The report predicts that cash usage in Nigeria will decline to 32% by 2030 based on its analysis of markets representing 88% of global GDP, demonstrating continuous growth in digital payment adoption.
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During 2023 digital payments in Nigeria experienced accelerated growth because the Central Bank of Nigeria implemented the naira redesign policy to fight cash hoarding and money laundering practices.
The disputed policy resulted in an extreme decline of available cash which reduced currency circulation to ₦982.1 billion in February 2023—the lowest level observed since 2008.
The cash crunch enabled fintech companies OPay and PalmPay to establish themselves as top winners through their reliable payment alternatives for online financial services.
A growing number of Nigerians want to transact without cash according to Uchenna Uzo who serves as a marketing professor at Lagos Business School. Electronic transactions under the Nigeria Inter-Bank Settlement System (NIBSS) grew by 1,514.2% as the data indicates that 793 million transactions in 2018 turned into 11.3 billion transactions in 2024.
According to the Worldpay report, Nigeria continues to be a cash-dominated economy yet its cash usage has decreased substantially from 91% during 2019 while “Mobile devices are playing a central role in the transformation.”
The financial inclusion rate has progressed to 64% according to Enhancing Financial Innovation & Access (EFInA) data from 2020 when it measured 56%. The Central Bank of Nigeria predicted in November 2024 that the financial sector would reach 80% growth by 2026.
Experts from Euromonitor International state in their recent report that the combination of these innovations creates improved payment processing efficiency and reduces cash usage as well as raises financial transaction efficiencies across Nigeria.
Nigeria has solidified its position as the top digital finance force throughout Africa because of innovative financial technology partnerships.
At this present rate of development, the country will become the financial inclusion leader throughout Africa and establish futuristic monetary standards across the continent.
