Nigeria's digital payment ecosystem has reached a significant milestone, with electronic transactions totaling N1.07 quadrillion in 2024, marking the first time transactions have crossed the quadrillion naira threshold. This figure, equivalent to approximately $702.6 billion at the reported year-end exchange rate, represents a 79.6% increase from the previous year's N600 trillion.

The NIBSS Instant Payment (NIP) platform processed 11.2 billion transactions throughout the year, up 15.5% from 9.7 billion in 2023. December 2024 saw peak activity with N115.1 trillion in transactions, attributed to increased festive season spending.

This dramatic growth in digital payments appears to be driven by several factors:

1. Policy Environment: The Central Bank of Nigeria's cashless policy, implemented in January 2023, which capped weekly cash withdrawals at N500,000 for individuals and N5 million for corporations.

2. Infrastructure Development: The widespread adoption of various payment channels including mobile apps, USSD, POS terminals, and internet banking.

3. Consumer Adaptation: Growing comfort with digital payment methods among Nigerians, particularly following the cash shortages experienced in early 2023.

Analysis:

The reported growth in digital payments signals several important developments:

1. Digital Transformation: The sharp increase in both transaction value and volume suggests an accelerating shift toward digital financial services in Nigeria.

2. Financial Inclusion: The growth in transaction volume indicates broader adoption of digital payments across different segments of society.

3. Economic Implications: The significant increase in transaction value could indicate:

   - Growing economic activity

   - Increased formalization of the economy

   - Reduced dependency on cash transactions

4. Policy Effectiveness: The success of the CBN's cashless policy in driving behavioral change among Nigerians.