The latest data from the Nigeria Inter-Bank Settlement Systems (NIBSS) shows mobile money transactions in Nigeria reached N71.5 trillion in 2024. This marks a 53.4% increase from N46.6 trillion recorded in 2023. The volume of transactions also rose by 23%, climbing from 3 billion to 3.9 billion within the same period.
Growth Driven by Increased Smartphone Use
Mobile money operators expect even greater transaction volumes in 2025. A rise in smartphone penetration is fueling adoption. Currently, 17 companies are licensed as Mobile Money Operators by the Central Bank of Nigeria (CBN). While Nigeria has over 200 fintechs, only these 17 hold mobile money service provider licenses.
Mobile money services enable users to transfer funds using mobile phones. Transactions occur through current, savings, or stored-value accounts. Despite regulatory challenges, the sector continues to thrive.
Regulatory Challenges and Industry Resilience
In April 2024, the CBN temporarily halted leading fintechs like OPay, PalmPay, and Paga from onboarding new users. This was due to concerns over their platforms being used for crypto-related foreign exchange transactions. The restriction lasted a month before being lifted.
Despite this setback, mobile money transactions in Nigeria continued to grow. The shift toward digital payments was further influenced by the cashless policy introduced by the CBN. This policy limits daily cash withdrawals, pushing more people to adopt electronic transactions.
The Future of Mobile Money in Nigeria
With mobile money adoption rising, experts predict sustained growth in digital payments. NIBSS reports that electronic transactions across all channels in Nigeria hit an all-time high of N1.07 quadrillion in 2024.
As smartphone penetration increases, mobile money platforms will play a crucial role in financial inclusion. Regulatory stability and improved infrastructure will further drive adoption.
