Nigeria Leads Global Decline in Cash Transactions as Digital Payments Surge

Nigeria Leads Global Decline in Cash Transactions as Digital Payments Surge

Nigeria has recorded the largest drop in cash usage globally over the past decade, surpassing six other cash-dependent economies, according to a new report by global payment processing company Worldpay.

Between 2014 and 2024, cash transactions in Nigeria declined by 59%, the steepest fall among the seven major economies analyzed. The Philippines followed with a 43% decline, while Indonesia (44%), Mexico (41%), Japan (31%), Germany (24%), and Colombia (22%) also experienced significant reductions in cash usage.

This shift is attributed to Nigeria’s rapid adoption of digital payments, driven by increased collaboration between banks and fintech companies. The report, which analyzed 40 markets covering 88% of global GDP, predicts that cash usage in Nigeria will decline further to 32% by 2030 as digital transactions continue to grow.

A major factor in this transition was the Central Bank of Nigeria’s (CBN) naira redesign policy in 2023, aimed at curbing cash hoarding and money laundering. However, the policy led to severe cash shortages, causing a 29.2% drop in currency circulation to N982.1 billion by February 2023, the lowest since 2008.