CBN’s Digital Push and the Surge to ₦284.9 Trillion: Why Nigeria’s E-Payment Boom is Just the Beginning, by Shuaib S. Agaka
Nigeria’s embrace of digital finance has reached an extraordinary milestone, with e-payment transactions hitting ₦284.9 trillion in the first quarter of 2025. According to data from the Nigeria Inter-Bank Settlement System (NIBSS), this represents a 22% increase from the ₦234.4 trillion recorded in the same period of 2024. At the heart of this surge lies the NIBSS Instant Payment (NIP) platform — an account-number-based, online, real-time interbank payment solution introduced in 2011 — which has become the backbone of Nigeria’s cashless evolution. From internet banking and mobile apps to USSD, POS, and ATMs, NIP’s interoperability has enabled a seamless payment experience that increasingly renders cash an afterthought.
The Central Bank of Nigeria (CBN) deserves significant credit for creating the regulatory and policy environment that made this growth possible. Over the past few years, the apex bank has doubled down on its cashless policy, setting ambitious targets for digital inclusion, mandating stronger Know-Your-Customer (KYC) processes, and supporting innovations in the fintech ecosystem. Measures such as the introduction of the eNaira, the review of transaction limits, and tighter oversight of payment service providers have worked in tandem to build trust in digital payments while ensuring that security and compliance are not sacrificed for speed. In many ways, the CBN has been playing the long game: fostering financial innovation while also strengthening systemic safeguards against fraud and money laundering.
But beyond the raw numbers, this growth signals a deeper shift in Nigeria’s economic fabric. A society that once depended heavily on physical cash is now witnessing an irreversible migration to digital-first transactions. For small businesses, this means greater transparency and a wider customer base, as payments can be processed instantly from any part of the country. For consumers, it translates to convenience, speed, and — in many cases — lower transaction costs. The implications for the tech industry are profound: fintech companies can now build more sophisticated products on top of this high-volume, high-trust payment infrastructure, from automated savings platforms to AI-driven credit scoring systems that rely on real-time transaction data.
However, this acceleration is not without challenges. As digital payments become ubiquitous, cyber risks will escalate in both sophistication and frequency. Fraud attempts, phishing attacks, and data breaches are likely to rise in proportion to transaction volumes. This is where the CBN’s regulatory foresight will again be tested. Striking the right balance between encouraging innovation and enforcing airtight cybersecurity measures will determine whether this momentum is sustainable or short-lived. Collaborations between the CBN, fintech firms, and cybersecurity experts will be essential in building a resilient payments ecosystem.
Looking ahead, Nigeria’s digital payment revolution could position it as a model for other emerging markets. With the right mix of policy consistency, infrastructure investment, and private sector innovation, the country could move from being a high-growth digital economy to a global leader in payment technology. But the key will be ensuring that growth is inclusive — that rural communities, the unbanked, and small traders are not left behind in the race toward a cashless society. In that regard, the CBN’s role is not just to regulate but to lead, guiding the sector toward a future where every Nigerian can benefit from the speed, transparency, and economic opportunity that digital payments bring.
Shuaib S. Agaka
