Nigeria has recorded the world’s sharpest decline in cash usage over the past decade, driven by the rapid expansion of digital payments and fintech innovation. This is according to a new report from global payment processing firm Worldpay.
Between 2014 and 2024, cash transactions in Nigeria plummeted by 59% — the highest drop among seven major cash-reliant economies studied. The Philippines followed with a 43% decline, while Indonesia (44%), Mexico (41%), Japan (31%), Germany (24%), and Colombia (22%) also saw reductions.
The report, which analyzed 40 global markets covering 88% of the world’s GDP, projects that Nigeria’s cash usage will continue to shrink, falling to 32% by 2030 as digital alternatives dominate.
The transformation was accelerated by the Central Bank of Nigeria’s (CBN) controversial naira redesign policy in 2023, aimed at reducing cash hoarding and curbing money laundering. The policy triggered a severe cash shortage, leading to a 29.2% drop in currency circulation, plunging to ₦982.1 billion by February 2023 — the lowest level since 2008.
As traditional banks struggled to meet the surge in online transaction demands, fintech giants like OPay and PalmPay seized the moment, offering faster, more reliable platforms for transfers and bill payments. These companies emerged as key players, reshaping how Nigerians handle money.
“Nigerians now have an increasing appetite for non-cash transactions,” remarked Uchenna Uzo, a marketing professor at Lagos Business School.
Supporting the trend, data from the Nigeria Inter-Bank Settlement System (NIBSS) shows electronic transaction volumes skyrocketed by an astonishing 1,514.2% — from 793 million in 2018 to 11.3 billion by 2024.
Although Nigeria remains a predominantly cash-based economy, cash transactions have fallen from 91% in 2019 to less than half of that today. Mobile technology, the report highlights, has become the driving force behind the country’s rapid financial evolution.
As digital payments continue to soar, Nigeria is positioning itself as a leader in the global shift toward a cashless future.
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