Nigeria has witnessed a substantial decline in cash transactions, dropping from 91% of total transactions to 55% over the span of four years

Key takeaways:

  • Among all the 40 countries studied in the report, Nigeria leads the decline in cash transactions, dropping from 91% in 2019 to 55% in 2023, a sharper decline than any other country analysed.
  • By 2027, Nigeria’s cash transactions are projected to fall to 42%.
  • Mexico, Thailand, and Japan are also experiencing significant declines, with cash transactions expected to drop below 35% in all three countries by 2027.
  • Brazil, which started with a relatively lower cash transaction rate (48% in 2019), is on track to become one of the least cash-dependent nations in this group, with just 12% of transactions expected to be cash-based by 2027.
  • The global average for cash transactions was already low at 26% in 2019, and it is set to decline further to just 11% by 2027, making cash an increasingly rare payment method worldwide.
  • Germany, a traditionally cash-friendly economy, has seen a major drop, with cash transactions decreasing from 50% in 2019 to a projected 29% by 2027, reflecting broader changes in consumer behavior.

The way people make payments is changing globally, and Nigeria is not left out. In just four years, Nigeria’s cash transactions have plunged from 91% of total transaction value in 2019 to 55% in 2023. This drastic decline highlights the rapid adoption of digital payments, mobile banking, and fintech solutions in the country. By 2027, the value of cash transactions is projected to shrink even further to 42%, signaling a trend toward a cashless economy.
This shift isn’t just happening in Nigeria. Countries like Mexico, Thailand, Japan, Germany, and Brazil are also experiencing a steady drop in cash usage. While the global average of cash transactions was 26% in 2019, it fell to 16% by 2023 and is forecasted to reach just 11% by 2027. The numbers tell a compelling story – the world is moving away from physical cash, and businesses, financial institutions, and individuals must adapt to stay ahead.

Source:

Worldpay Global Payments Report

Period:

2019, 2023, 2027
HTML code to embed chart
Want a bespoke report?
Reach out
Click to copy HTML embed code
Tags
Related Insights
Nigeria's insurance sector crossed ₦1.98tn in H1 2025 as every segment grew by at least 25%
  • Life Business was the single largest segment, and its 70.3% jump signals that more Nigerians are thinking seriously about financial protection for their families.
  • Miscellaneous, the smallest segment, posted the biggest growth at 86.7%, suggesting new and unconventional insurance products are gaining serious traction.
  • Aviation & Marine nearly doubled, with 79.9% growth in a sector tied to trade and logistics, reflecting Nigeria's expanding import/export activity and the rising cost of cargo and aircraft risk coverage.
  • Motor (52.5%), Fire (53.3%), and General Accident (49.6%) grew by roughly half, indicating broad-based sector expansion rather than isolated pockets of growth.
Internationally authorised Nigerian banks have raised over ₦3.3tn since March 2024
  • Internationally authorised Nigerian banks have raised and injected over ₦3.3 trillion in new capital since March 2024.
  • The recapitalisation exercise is being driven by the Central Bank of Nigeria’s requirements, with the deadline expected in March 2026.
  • Zenith Bank currently has the highest capital among the banks shown, reaching about ₦614 billion.
  • Access Holdings has about ₦602.8 billion in total capital.
  • Fidelity Bank raised the largest single capital injection in the group, about ₦437.85 billion, pushing its total capital to ₦564.5 billion.
  • FCMB has the highest previous capital base among the banks listed (₦266.5 billion) before the recapitalisation injection.
Nigeria's insurance sector crossed ₦1.98tn in H1 2025 as every segment grew by at least 25%
  • Life Business was the single largest segment, and its 70.3% jump signals that more Nigerians are thinking seriously about financial protection for their families.
  • Miscellaneous, the smallest segment, posted the biggest growth at 86.7%, suggesting new and unconventional insurance products are gaining serious traction.
  • Aviation & Marine nearly doubled, with 79.9% growth in a sector tied to trade and logistics, reflecting Nigeria's expanding import/export activity and the rising cost of cargo and aircraft risk coverage.
  • Motor (52.5%), Fire (53.3%), and General Accident (49.6%) grew by roughly half, indicating broad-based sector expansion rather than isolated pockets of growth.
Nigeria had about 135 bank accounts per 100 people in 2025, up from 32 bank accounts in 2017
  • Active bank accounts grew from 65 million in 2016 to over 320 million in 2025 — almost a fivefold increase.
  • Bank accounts per 100 people rose from about 32 in 2017 to nearly 135 in 2025.
  • Nigeria now averages more than one bank account per person.
  • The fastest growth phase occurred between 2019 and 2024.
  • Digital banking and fintech adoption played a major role in the surge.
  • The jump after 2020 suggests technology-driven access, not just population growth.
  • Multiple account ownership is now common among users.
Nigeria saw an increase of 2.9 million deployed POS in 2024, following the naira redesign in 2023
  • Deployed POS terminals grew from about 156,000 in 2017 to 8.4 million in 2025.
  • Nigeria added more than eight million terminals in eight years, indicating rapid adoption of digital payments.
  • Growth accelerated sharply after 2020, marking a major shift toward cashless transactions.
  • The highest year-on-year growth (116.8%) occurred in 2024, following the naira redesign.
  • About three million terminals were added in 2024 alone.
  • POS agents became critical financial access points during the period of cash shortage.
  • POS terminals now function as mini-banks in many communities.
  • Financial inclusion has expanded through agent-based banking and POS networks.
Zero Losses: Every Access Holdings’ subsidiary made a profit in H1 2025
  • Every subsidiary reported profit in H1 2025, compared to three loss-making units in H1 2024.
  • Nigeria’s profit eased, but stronger performance across other African markets helped support overall group results.
  • Zambia, Sierra Leone, the DRC, Cameroon, and Kenya showed notable turnarounds from previous low or negative earnings.
  • The UK operation remained a major contributor, reinforcing the benefits of Access Holdings’ diversified regional presence.
POPULAR TOPICS
SIGN UP TO OUR NEWSLETTER
Get periodic updates about the African startup space, access to our reports, among others.
Subscribe Here
Subscription Form
A product of Techpoint Africa. All rights reserved