Palmpay, Others Process ₦71.5trn Worth Transactions In 2024

The mobile money sector in Nigeria has experienced significant growth in 2024, with licensed operators such as Palmpay, OPay, and 15 others processing transactions worth N71.5 trillion, a 53.4 percent increase compared to the N46.6 trillion recorded in 2023.

The volume of transactions also rose by 23 percent, from 3 billion in 2023 to 3.9 billion in 2024, according to data from the Nigeria Inter-Bank Settlement System (NIBSS).

This growth highlights the increasing adoption of mobile money services in Nigeria, driven by factors such as rising smartphone penetration, the Central Bank of Nigeria’s (CBN) cashless policy, and the lingering effects of the 2023 cash crunch.

The CBN’s cashless policy, which limits individual cash withdrawals to N500, 000 per week and corporate withdrawals to N5 million per week, has been a key driver of the shift toward electronic payments. This policy, coupled with the convenience and accessibility of mobile money platforms, has encouraged more Nigerians to embrace digital financial services.

Despite a temporary setback in April 2024, when the CBN suspended some leading mobile money operators, including OPay and Palmpay, from on boarding new customers due to concerns about illicit forex activities, the sector rebounded strongly. The suspension, which lasted about a month, did not significantly dampen the overall growth trajectory.

The surge in mobile money transactions is part of a broader trend in Nigeria’s e-payment ecosystem, which saw total transactions across all electronic channels reach an all-time high of N1.07 quadrillion in 2024. This reflects a growing preference for digital payment solutions over cash, driven by the need for efficiency, security, and compliance with regulatory policies. Mobile money operators are well-positioned to capitalise on this trend, particularly as smartphone penetration continues to rise, enabling more Nigerians to access financial services through their mobile devices.

Looking ahead, the mobile money sector is poised for further expansion, with operators anticipating a bigger boom in transactions in 2025. However, challenges such as regulatory scrutiny, cybersecurity risks, and the need for continuous innovation to enhance user experience and trust will be critical to sustaining this growth. For investors, the mobile money sector presents a compelling opportunity, given its rapid growth and alignment with Nigeria’s cashless policy objectives. Companies such as Palmpay and OPay, which have established strong market positions, are likely to remain key players in this evolving landscape. Overall, the sector’s robust performance in 2024 highlights its potential to drive financial inclusion and transform Nigeria’s payment ecosystem.