Nigeria’s electronic payment sector recorded a historic milestone in 2024, as total transactions on the Nigeria Inter-Bank Settlement System (NIBSS) Instant Payment (NIP) platform soared to N1.07 quadrillion.

This marks the first time the country’s e-payment transactions have crossed the quadrillion-naira threshold, reflecting the increasing adoption of digital payments across all sectors of the economy.

At an exchange rate of N1,535/$1 as of December 31, 2024, this transaction value equates to approximately $702.6 billion, underscoring Nigeria’s growing reliance on digital financial services.

The latest data from NIBSS reveals that the N1.07 quadrillion recorded in 2024 represents a remarkable 79.6% increase from the N600 trillion recorded in 2023. This surge highlights a significant shift towards electronic payments, fueled by factors such as the Central Bank of Nigeria’s (CBN) cashless policy, persistent cash shortages, and increased financial inclusion efforts.

While e-payment volumes grew steadily throughout the year, December 2024 stood out with a record-breaking N115.1 trillion in transactions—the highest monthly total ever recorded on the NIBSS platform. This spike was attributed to the festive season, as Nigerians spent heavily via electronic channels for holiday shopping, travel, and entertainment.

Beyond the value of transactions, the volume of electronic payments also experienced significant growth. In 2024, NIBSS processed 11.2 billion transactions, up from 9.7 billion in 2023, representing a 15.5% increase year-on-year. This surge indicates that not only are more Nigerians embracing e-payments, but they are also conducting more frequent digital transactions.

Analysts believe that the persistent scarcity of physical cash, coupled with the CBN’s withdrawal limits, has been a key driver of e-payment adoption. The CBN’s revised cashless policy, which took effect on January 9, 2023, set strict limits on cash withdrawals. Individuals can withdraw a maximum of N500,000 per week, while corporate organizations have a limit of N5 million per week.

Although intended to promote financial inclusion and curb illicit cash transactions, the policy forced many Nigerians to explore alternative payment methods such as mobile banking, USSD, and PoS transactions.

A Lagos-based financial analyst, Adewale Adeoye, noted that the non-availability of cash in banks has pushed more Nigerians to rely on digital payment options. He explained that electronic transactions are expected to continue rising since banks are not releasing cash as freely as before.

Aside from the CBN withdrawal limit, he pointed out that customers walking into a bank today might be told that they can’t withdraw more than N5,000 over the counter. This leaves many Nigerians with no choice but to use ATMs, which are often out of cash, or to turn to PoS operators and mobile transfers.

With the surge in electronic transactions, the federal government is also benefiting significantly through increased revenue from the Electronic Money Transfer Levy (EMTL). The EMTL was originally introduced in the Finance Act of 2020 but was expanded in 2023 to include fintech platforms, broadening its scope and increasing its revenue-generating potential. The Federal Inland Revenue Service (FIRS) directed all financial institutions, including banks and fintech companies, to deduct N50 on all electronic transfers of N10,000 and above starting from September 9, 2024.

Between January and August 2024, Nigerian bank customers paid N133.89 billion in EMTL. Given the record volume of transactions in the latter part of the year, government revenue from the levy is expected to rise even further.

The increased adoption of digital payments means that as more transactions shift away from cash to electronic channels, the government is set to generate more revenue through this levy. This development aligns with efforts to improve tax collection efficiency and boost non-oil revenue, particularly as Nigeria continues to face fiscal challenges.

The NIBSS Instant Payments (NIP) system, introduced in 2011, has played a critical role in Nigeria’s transition to a cashless economy. The platform enables real-time inter-bank transfers and has been widely integrated across banking channels, including Internet banking, mobile apps, USSD banking, PoS terminals, and ATMs.

With more financial institutions and fintech firms leveraging NIP, the system has enhanced the efficiency and reliability of Nigeria’s digital payment infrastructure.

Nigeria’s digital payment revolution appears irreversible, as an increasing number of consumers get accustomed to cashless transactions. Despite initial resistance to electronic payments, particularly among older generations and rural populations, the necessity created by cash shortages has fast-tracked the adoption of digital payment methods.

Industry observers expect this trend to continue in 2025 and beyond, especially as the CBN doubles down on its cashless policy and fintech innovations make digital transactions even more seamless.

With electronic payments now accounting for trillions of naira in transactions every month, Nigeria is well on its way to achieving a fully digital financial ecosystem—a development that could boost financial inclusion, reduce corruption, and enhance economic efficiency in the long run.

More Startups Fail Due to Lack of Execution Than Due to Competition. You know because when the startups exit, the original problems they were created to solve remain! Watch this video on how to focus and win your business future, and stop being distracted by spending all time studying your competitors, over doing what you need to do to win the wallets of your customers.

“I worked hard and did more than my supervisor asked me to do”, we always say. But did you do the specific task the supervisor asked you to get done? This is where the world becomes super-exciting because winning differs across many phases of our careers.

In the university, it could be passing an exam. At work, there is no clear exam, but there are metrics to ascertain who is adding value in the business. If you take the attitude of passing an exam to some jobs, you could fail.

Here, in the video, the young girl focused on the task and did not allow herself to be distracted. All her tactics focused on  getting the job done. In short, they centered around how to execute. On the other hand, her opponent got distracted, becoming more sophisticated in his playbook, but whatever he was doing did not actually help, and when he saw that he was losing, everything broke down!

Remember: what is the task at hand, and how do we get it done? FOCUS wins laurels in athletics, in markets and at work. As they say, if you focus on the goal, everything will propel you to it. But when you focus on the challenges which must be overcome to get to the goals, the challenges could distract you as solving them could become the “goals”, tripping you out of the real mission!

Comment on Feed

Comment: What’s the line between admitting that a problem cannot be solved yet or is currently too expensive to solve and lack of execution

My Response: Interestingly, you will discover that by trying to solve the market problem and speaking with your customers. There, you will see that your products are not meeting their needs. It does not come by focusing on what the competitor is doing. Sure, we need to pay attention to competition as that is part of the game. But we need to put more efforts on what we want to do first!

Dr. Olubunmi Tunji-Ojo, Nigeria’s Minister of Interior, has announced that the ministry generated over N6 billion in revenue in 2024.

The revenue was accrued from services such as expatriate quotas, marriage services, citizenship applications, and place of worship registrations. The announcement underscores the ministry’s role in internal security, immigration, civil defense, and related services, as well as its capacity to generate substantial non-oil revenue for the government.

Providing a detailed breakdown of the revenue sources, Tunji-Ojo disclosed that N3,220,035 came from expatriate quotas, N2,409,282 was generated from marriage services, N392,790 was derived from citizenship applications, while N12,350 came from place of worship registrations. The figures reflect the financial contribution of these administrative services to Nigeria’s revenue base, reinforcing the importance of efficient service delivery within the ministry.

However, while the revenue generation of the Ministry of Interior is commendable, it raises concerns about the increasing transformation of government agencies into revenue-generating institutions. The primary role of these agencies is to provide essential public services, but in recent years, many of them appear more focused on increasing internally generated revenue rather than prioritizing service delivery.

This shift has been particularly evident in agencies such as the Nigeria Customs Service (NCS), the Federal Road Safety Corps (FRSC), and the Nigeria Police Force, which have introduced various charges and levies that directly impact citizens.

The case of the Nigeria Immigration Service (NIS) is particularly striking. The agency, which is responsible for handling immigration-related services, has increasingly relied on revenue generation as a major focus. This became evident in January 2024, when the NIS increased the cost of international passports by nearly 100%, citing rising operational costs. The move sparked public outcry, as it placed an additional financial burden on Nigerians who were already grappling with severe economic hardship, high inflation, and a depreciating naira.

Before the price hike, a 32-page passport cost N25,000, but the new rates doubled the price to N50,000. Similarly, the 64-page passport, previously N70,000, now costs N100,000, while other premium services such as fast-track processing require even higher fees.

Many Nigerians have expressed frustration over what they see as the commercialization of essential public services, arguing that instead of prioritizing efficiency and accessibility, agencies like the NIS have resorted to using price hikes as a means of increasing revenue.

The situation with the NIS is not an isolated case. Several other agencies under the Ministry of Interior, as well as other ministries, have increased service charges under the guise of boosting internally generated revenue (IGR).

This trend of government agencies acting as profit-making entities rather than service providers raises fundamental questions about governance priorities. While revenue generation is necessary for funding government operations, there is growing concern that it is coming at the direct expense of the citizens, many of whom are struggling with high living costs, stagnant wages, and limited access to affordable public services.

Mass Promotions and Recruitment Drive

Beyond revenue generation, the minister also highlighted significant strides in promotions and recruitment within the four key agencies under the Ministry of Interior, namely the Nigeria Security and Civil Defence Corps (NSCDC), the Nigeria Immigration Service (NIS), the Federal Fire Service (FFS), and the Nigeria Correctional Service (NCoS).

According to Dr. Tunji-Ojo, a total of 32,640 officers and men were promoted across these agencies in 2023, largely due to the clearance of a backlog of pending promotions. He emphasized that there is currently no backlog in any of the ministry’s services, signaling a shift towards improved personnel management.

“In 2023, we had a higher number of promotions because of the backlog, which we have now cleared. There is currently no backlog in any of the services,” Tunji-Ojo stated.

In addition to promotions, the ministry has also been actively recruiting personnel to strengthen the nation’s security infrastructure. Between 2023 and 2024, a total of 10,783 officers and men were recruited into the NIS, NSCDC, and FFS. The minister explained that in 2023, the NIS recruited 5,283 personnel, while the NSCDC recruited 3,000 officers. In 2024, the FFS announced the recruitment of 2,500 firefighters.

The minister also noted that the 2024 promotion exercise saw 20,851 personnel across various agencies elevated in rank, further demonstrating the government’s commitment to rewarding and motivating officers in the security sector. The Nigeria Correctional Service (NCoS) promoted 5,331 personnel, the Nigeria Immigration Service (NIS) promoted 5,088 personnel, the Federal Fire Service (FFS) promoted 486 personnel, while the Nigeria Security and Civil Defence Corps (NSCDC) had the highest number, with 9,946 personnel promoted.

Crackdown on Indiscipline and Migration of Personnel

Beyond recruitment and promotions, the minister emphasized that discipline remains a top priority within the ministry. He warned that any form of indiscipline or misconduct would not be tolerated, revealing that several disciplinary cases were currently being addressed within the various agencies.

Dr. Tunji-Ojo also addressed the issue of personnel migration, commonly referred to as “japa”, where government workers resign and relocate abroad in search of better opportunities. He disclosed that the ministry completed the first phase of a manpower audit in 2024, which revealed significant leakage due to personnel migration. However, he assured the public that the ministry had implemented measures to block such leakages and ensure that Nigeria’s security agencies retain their skilled workforce.

To enhance efficiency and accountability, the Minister of Interior revealed that all agency heads under the ministry are now required to sign performance contracts. These contracts establish clear targets and expectations for service delivery, ensuring that officials remain committed to their responsibilities.