Nigeria Leads Global Shift Away from Cash as Digital Payments Surge 59% in a Decade

Nigeria has recorded the sharpest drop in cash usage worldwide, driven by the rapid growth of digital payments and fintech innovations, according to a new report from Worldpay.

Between 2014 and 2024, cash transactions in Nigeria fell by 59%, marking the largest decline among seven major economies where cash has traditionally been dominant. The Philippines followed with a 43% decrease, while Indonesia saw a 44% drop, Mexico 41%, Japan 31%, Germany 24%, and Colombia 22%.

The report, which analyzed 40 global markets representing 88% of the world’s GDP, predicts that cash usage in Nigeria will continue to decline, reaching 32% by 2030 as digital payment methods continue to rise.

A major turning point in Nigeria’s shift away from cash was the Central Bank of Nigeria’s (CBN) 2023 naira redesign policy. This initiative was introduced to curb cash hoarding and tackle illicit financial practices. However, it led to a severe cash shortage, with currency circulation dropping by 29.2% to just ₦982.1 billion in February 2023 — the lowest figure recorded in over ten years.

As traditional banks struggled to handle the surge in online transaction requests, fintech companies like OPay and PalmPay stepped in as major players, delivering smooth and efficient digital payment services. These platforms quickly rose in popularity, transforming how financial transactions are carried out in Nigeria.

“Nigerians are increasingly embracing non-cash transactions,” said Uchenna Uzo, a marketing professor at Lagos Business School.

According to data from the Nigeria Inter-Bank Settlement System (NIBSS), the country is experiencing a remarkable shift toward digital payments. Electronic transaction volumes have soared by 1,514.2%, rising from 793 million in 2018 to a staggering 11.3 billion by 2024.

Although cash is still commonly used across Nigeria, its dominance has decreased considerably. In 2019, cash transactions made up 91% of all payments — a number that has now dropped to less than half.

Mobile technology has emerged as a major force behind Nigeria’s financial evolution, giving millions of people easy access to digital banking and payment services. With the growing popularity of mobile wallets, fintech platforms, and digital banking solutions, Nigeria is steadily positioning itself as a global leader in the move toward a cashless economy.

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