The Nigeria Inter-Bank Settlement Systems (NIBSS) has reported a significant rise in mobile money transactions, revealing that licensed operators, including Palmpay, OPay, and 15 others, processed N41.5 trillion in transactions between January and July this year.
This marks a 74 per cent increase compared to the N23.9 trillion recorded in the same period last year. With five months remaining in 2024, the sector is poised to surpass its previous annual record of N46.6 trillion set in 2023.
This surge comes despite a one-month suspension on onboarding new customers for some leading operators, including OPay and Palmpay.
The Central Bank of Nigeria (CBN) had imposed the temporary restriction, citing concerns that some platforms were being exploited by criminal elements for foreign exchange-related crypto trading. The restriction was lifted after a month of review.
Industry analysts attribute the sharp rise in mobile money and overall electronic payments to the cash crunch experienced earlier in the year, as well as the CBN’s revised cashless policy.
The policy, which came into effect in January 2023, limits individual cash withdrawals to N500,000 per week, while corporate entities face a N5 million weekly limit.
According to NIBSS data, overall e-payment transactions in Nigeria reached N566.3 trillion between January and July, nearly matching the N600 trillion recorded for the entire year of 2023.
Financial analysts, Bode Abayomi believes the shift toward electronic transactions is driven by both necessity and convenience.
“The restrictions on cash withdrawals have nudged more Nigerians toward digital solutions. With more robust mobile money platforms, people are finding it easier to transact seamlessly without cash,” Abayomi said.
Despite the positive growth trajectory, fintech consultant Ijeoma Adibe cautions about potential regulatory challenges ahead.
“While the growth is impressive, the CBN’s concerns about security and misuse of platforms underscore the need for stronger compliance mechanisms. Sustaining this growth will depend on how well operators can balance innovation with regulatory demands,” she said.