
In the first half of 2024, Nigerians made history by conducting Point-of-Sale (POS) transactions worth a staggering ₦85.91 trillion, according to the Central Bank of Nigeria’s latest quarterly statistical bulletin. This figure not only dwarfs the ₦12.21 trillion recorded for Automated Teller Machine (ATM) transactions during the same period but also signals a dramatic shift in how Nigerians spend and move money.
Looking back, the rise is jaw-dropping. Compared to the same period in 2023, the value of POS transactions skyrocketed by 77 per cent, jumping from ₦48.44 trillion to ₦85.91 trillion. Similarly, the volume of transactions grew by 31 per cent, from 4.87 billion to 6.39 billion. These numbers are not just statistics; they reflect a shift in the way Nigerians think about money and convenience.
For starters, POS terminals have become as common as sachet water kiosks across Nigeria. In Benin City, from the buzzing streets of Ring Road to the quiet corners of the city, you will find agents with their small machines, making cashless transactions as accessible as buying groundnuts from a roadside vendor. No longer is a trip to the bank or an ATM the only way to handle business or emergencies. This convenience has reshaped lives, especially in rural areas where bank branches are often miles away.
Interestingly, this growth came with its share of challenges. In December 2024, as Nigerians grappled with increased POS service charges, agents charged up to ₦200 for a ₦5,000 withdrawal, many had no choice but to embrace the higher fees. The scarcity of cash at banks and ATMs made POS agents the go-to solution. Yet, despite the pinch in their pockets, Nigerians leaned into the system, a testament to the practicality of cashless payments in a cash-starved economy.
For comparison, ATM transactions took a hit. Their value declined by 16.6 per cent, from ₦14.63 trillion in 2023 to ₦12.21 trillion in 2024. Even the volume of transactions fell slightly, from 519.52 million to 496.43 million. These figures tell a compelling story: the convenience of POS payments is steadily outpacing the old reliance on ATMs.
This shift isn’t limited to POS alone. Internet banking and mobile payments are also on the rise. The value of internet banking transactions more than doubled, surging from ₦462.17 billion in 2023 to ₦825.5 billion in 2024. Meanwhile, mobile payment transactions climbed in value from ₦97.06 billion to ₦159.42 billion, with volumes growing from 2.33 billion to 3.49 billion. Clearly, Nigerians are embracing digital payments in ways unimaginable just a few years ago.
The CBN recently sanctioned nine banks, fining them ₦1.35 billion for failing to ensure cash availability at ATMs during the festive season. It’s a stark reminder that even as digital transactions soar, gaps in the system remain, with banks still struggling to meet public demand for cash when it’s needed most.
Reflecting on these figures, one cannot ignore how far the country has come. Back in 2023, during a period marked by severe cash shortages, POS transactions grew by a staggering 205 per cent, from ₦15.86 trillion in 2022 to ₦48.44 trillion. The volume also surged by 185 per cent, from 1.71 billion to 4.87 billion. Nigerians, ever resourceful, found a way to adapt, turning adversity into opportunity.