Digital payments in Nigeria exponentially increased last year to set a key trend in Africa’s largest economy in 2025. As much as ₦1.56 quadrillion worth of e-payment transactions were recorded in the first half of 2024 alone, which accounts for a jaw-dropping 70% of the total for 2023. Such extraordinary growth shows that the country now embraces the concept of a digital-first economy.

Telling this story involves technology, regulations, innovation, and how they have been strategically incorporated across the vibrant fintech space in the country.

Nigeria is home to 217 fintech startups, representing a 50% increase since 2021. Nigeria was Africa’s leading country when it came to fintech funding, raising $140 million in the first half of last year. Nigeria’s digital payments in 2025 are being driven by nimble players delivering banking experiences on mobile phones, optimizing embedded finance, and making access to financial tools more democratized.

An increase in digital transactions has necessarily invited tight monitoring. Thus, the CBN issued tighter KYC rules in late 2023, including biometric identification, address verification, and more rigorous onboarding on all financial services platforms.

Fintechs now cooperate with RegTech firms such as SmileID and Dojah for compliance; onboarding cost inflation (₦1,500 to ₦2,000 per user) must be seen as investments to build trust and lower fraud in digital channels.

AI will be a big component in the next phase of Nigeria’s e-payment growth. Digital banks like Sparkle and KUDA make use of AI for real-time credit scoring, predictive analysis, and customer support automation.

On the other hand, Carbon and FairMoney deploy alternative credit scoring models using mobile data and social behavior rather than conventional credit records to serve the mostly underbanked Nigerian population.

That again speaks of the fact that today’s digital payments, in 2025, Nigeria, more so, are beyond mere payment; they are building the very foundation of financial inclusion and access to credit.

CBN reports that 76% of Nigerians were financially included in 2023. While NIBSS Instant Payments (NIP), topping its transaction value of ₦1.07 quadrillion, and mobile money moved above ₦79.5 trillion, cash continues to be the king at POS locations.

Money in circulation outside banking systems, standing at ₦4.65 trillion as of late 2024, has been on a steady decline, signaling that Nigerian digital payments in 2025 are nudging the country toward a less-cash economy.

The country is setting some trends for the global market. Between 2014 and 2024, cash usage fell by 59% in the country, the highest in the world. The payment infrastructure, particularly NIBSS, matches the transaction speed and digital identity integration offered by India’s UPI and Brazil’s Pix.

In 2025, Nigeria is receiving recognition for building scalable and inclusive payment systems that have the potential to influence pan-African frameworks similar to PAPSS (Pan-African Payment and Settlement System).

Embedded finance will become the norm, with API connections existing between merchants, telecoms, and banks. Blockchain and AI will provide additional security to transactions. Ensuing, more Nigerians, especially rural Nigerians, will come online.

Nigeria’s digital payments in 2025 will not be about how money moves but more about who gets to move the money, how fast, and with how much security.

The Nigerian fintech ecosystem is delivering world-class innovation, despite challenges including poor infrastructure, rising fraud, and an ongoing dip in VC funding. The likes of Zone, Flutterwave, and Moniepoint are envisioning a future where financial access shall be instant, digital, and trusted.

“We’re not just building a cashless economy,” emphasizes Zone CEO Obi Emetarom.
“We’re building one that is inclusive, intelligent, and future-ready.”

And the numbers? They’re backing him up—₦1.56 quadrillion at a time.