E-Payment Transactions Surge By 59% To N284.4 Trillion In 2024

Introduction

The adoption of electronic payment systems in Nigeria continues to grow significantly, with transaction values soaring by 59.3% year-on-year (YoY) to an impressive N284.4 trillion in 2024, up from N178.5 trillion in 2023. This growth reflects the increasing reliance on digital financial solutions, fueled by advancements in fintech, mobile banking, and electronic payment infrastructure.

Breakdown of E-Payment Transactions

NIBSS Instant Payment (NIP) Leads the Market

Data from the Nigeria Interbank Settlement System (NIBSS) highlights that NIBSS Instant Payment (NIP) recorded the highest number and value of transactions in 2024.

Transaction Volume: 10.47 billion transactions
Transaction Value: N105 trillion

Despite this dominance, the value of NIP transactions experienced an 8.69% decline from N115 trillion in 2023 to N105 trillion in 2024, even as the transaction volume increased by 92%, rising from 8.49 billion in 2023 to 10.47 billion in 2024.

Mobile Money Transactions Experience a Major Boost

Mobile Money Operators (MMOs) also witnessed remarkable growth in transaction volume and value:

Transaction Volume: Increased by 28.9% YoY, reaching 3.92 billion transactions in 2024, compared to 3.04 billion in 2023.
Transaction Value: Rose significantly by 70%, surging from N46.77 trillion in 2023 to N79.7 trillion in 2024.

This increase underscores the rising adoption of mobile money platforms, which provide seamless, cashless transactions for individuals and businesses alike.

Fraud Trends in E-Payment Transactions

While electronic payment adoption continues to expand, concerns over fraud remain. According to the 2023 Fraud Landscape Report by NIBSS, the number of recorded fraud cases declined from 101,669 in 2022 to 95,620 in 2023. However, mobile e-payment fraud saw a 5% increase, making it the most targeted channel for financial crimes.

Conclusion

The rapid rise in electronic transactions across various platforms, including NIP and mobile money services, highlights Nigeria’s shift towards a more digital financial ecosystem. However, with this growth comes the need for enhanced security measures to mitigate fraud risks. As fintech innovations continue to evolve, ensuring safe, fast, and efficient digital transactions remains a priority for both financial institutions and users.