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Online Transfers Dominate in Nigerian Payments Space as ATM Transactions Decline

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The growing smartphone penetration in Nigeria and a shift towards mobile applications as the preferred means of conducting transactions is driving online transfers, relegating ATM transactions to the background.

The growth in mobile phone penetration in Nigeria, coupled with initiatives led by the Central Bank, has led to a sustained shift in user behaviour towards mobile applications as the preferred means of conducting transactions, increasingly replacing traditional cash-based methods.

A new report by Zone, in partnership with TechCabal Insights, sheds light on how Nigerians have transitioned from ATMs as the primary means of conducting financial transactions to online transfers.

In 2012, at the commencement of the CBN’s Payments System Vision (PSV2020), ATM transactions in Nigeria totaled ₦1.98 trillion, while online transfer payments for the same period were valued at ₦31.57 billion. The following decade witnessed an explosion in online transfers.

As of 2022, ATM transactions were valued at ₦32 trillion, while online transfers soared to ₦783.6 trillion, marking an astounding ‪2610.15percent overall increase and a 43.78percent year-on-year growth.

Data from the report reveals that 36percent of Nigerians above 15 own a debit card, with one of the largest card payment companies, Verve, claiming to have issued around 35 million active payment cards as of 2022.

Here are five key insights from the Nigerian Payments Report 2024:

Surge in online transfers driven by digital adoption

The total transaction value for online transfers grew from ₦545.03 trillion in 2021 to ₦783.66 trillion in 2022, marking a substantial 43.78percent year-on-year increase.

The total volume of transactions similarly increased by 36.26percent, from 10.32 trillion to 14.06 trillion within the same period.

This growth indicates an improved digital payment infrastructure, enabling businesses to actively promote online payments and reflecting increased consumer trust in digital platforms for e-commerce, bill payments, and peer-to-peer transactions.

Decline in ATM transactions attributed to increasing smartphone penetration

Although the total transaction value of ATM transactions increased by 53.78percent year-on-year, from ₦21.23 trillion in 2021 to ₦32.64 trillion in 2022, there was an 8.55percent decline in volume, from 4.45 billion in 2021 to 4.07 billion in 2022.

There has been a noticeable evolution in ATM usage over the years. As of 2010, Nigeria had about 7,100 ATMs, rapidly growing to over 11,000 in 2011 due to the CBN mandating banks’ removal of offsite deployment. In the following decade, the number of ATMs doubled peaking at 22,600 in 2021, which has remained as of December 2023.

However, there’s still a demand for ATMs, with an estimated 60,000 ATMs required to meet up with its growing population. This has led to an increasing adoption of alternative banking channels.

This shift underscores a trend towards digital payments, such as POS terminals, mobile wallets, and online transfers, signalling increased smartphone and internet usage. POS transfers experienced a 17.00percent increase in total volume, rising from 982.83 million in 2021 to 1.14 billion in 2022.

Mobile app transfers, with a total volume of 831.54 billion in 2021, increased to 1.86 trillion in 2022, reflecting a 123.85percent change in transaction volume. The total transaction value for mobile app transfers increased from ₦53.20 trillion in 2021 to ₦111.12 trillion in 2022—a noteworthy 108.84percent year-on-year growth.

Smartphone penetration in Nigeria is growing and is projected to hit 60percent by 2025, with over 143 million Nigerians owning smartphones. The uptick suggests confidence in the security provided by digital payment platforms, showcasing progress toward financial inclusion.

Mobile money operators witness remarkable growth

Mobile money (MMO) transfers in Nigeria witnessed a 151.18percent increase in total volume, rising from 248.5 million in 2021 to 714.5 million in 2022. Concurrently, the total transaction value rose from ₦8.06 trillion in 2021 to ₦19.4 trillion in 2022, marking a significant 140.73percent year-on-year increase.

The convenience and accessibility offered by mobile money services, particularly in remote or unbanked areas, have been key drivers of this growth.

NIBSS Instant Payment (NIP) gains traction

Transactions via the Nigeria Interbank Settlement System (NIBSS) witnessed a 47.99percent increase in total volume, rising from 3.47 billion in 2021 to 5.14 billion in 2022. The total transaction value surged from ₦271.95 trillion in 2021 to ₦387.07 trillion in 2022, representing a 42.33percent year-on-year increase.

Regulatory initiatives driving payment system evolution

An emphasis on the role of regulatory initiatives in driving the evolution of Nigeria’s payment system plays prominently. The CBN’s PSV2020 and PSV2025 have been instrumental in promoting digital payments and financial inclusion.

Through NIBSS, the CBN provides the framework for Real-Time Gross Settlement (RTGS). The growth of payment methods and channels, such as online transfers, NEFT transfers, and NIP transfers, is a testament to the effectiveness of these initiatives.


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E-Financial

Edun, Finance Minister Inaugurates NDIC New Management

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Mr Wale Edun, minister of Finance and coordinating minister of the Economy,  has inaugurated Mr Thompson Oludare Sunday, new managing director/chief executive officer of the Nigeria Deposit Insurance Corporation (NDIC), and Dr Kabir Sabo Katata, executive director (Operations),  at the Ministry of Finance, Abuja.

Mr Wale Edun, minister of Finance and coordinating minister of the Economy, flanked by Mr Thompson Oludare Sunday, new managing director/chief executive officer of the Nigeria Deposit Insurance Corporation (NDIC), and Dr Kabir Sabo Katata, executive director (Operations),

In his speech during the occasion, the Minister submitted that the NDIC, as a component of the financial safety-net has a crucial role to play in the nation’s march to economic stability and prosperity.

He therefore charged the Management team to bring their diverse wealth of experience to bear on their new assignment while assuring them of the ministry’s full support in the task ahead.

Responding, Mr Sunday who spoke on behalf of the Management team, expressed appreciation to His Excellency, President Bola Ahmed Tinubu for their appointment.

He assured the Hon Minister of the readiness of the Management under his leadership to live up to expectations of the President in particular and the nation in general in the discharge of their duties.

The Management  later received by the Corporation’s Head Office with a warm welcome by the workforce.

A statement signed by Hawwau Gambo, head, Communication & Public Affairs Department, revealed that Addressing the workers on behalf the Management team, Mr. Sunday promised to work in harmony with the staff to move the Corporation to its next level performance.

He stressed that the Management’s focus would be based on the public policy objectives, functions and mandate devolved on the Corporation by the enabling law that established it.

Thompson Oludare Sunday is a seasoned financial expert with over 30 years of regulatory and supervisory experience.

Having cut his teeth with the Central Bank of Nigeria (CBN) in 1989, he went ahead to acquire high-end knowledge in Central Banking, spending 24 unbroken years in banking supervision.

While his vast experience is in the regulation and supervision of licensed institutions, his deep expertise span corporate governance, risk management and compliance as veritable tool for ensuring the safety and soundness of institutions.

He is a highly analytical and cross functional team worker with strong interest in building individual and institutional capacity for transformation and excellence.

Thompson’s skills and experience were horned by several key responsibilities and special assignments he handled for the apex Bank before his retirement as a Director 2021.

Kabir Sabo Katata, ED (Operations),  is a quantitative energy strategist and computational finance expert with strong power trading and risk management experience.

He has over twenty-eight years’ experience in the design and management of technically innovative systems in multiple industries including telecommunications, IT, energy (petroleum & power), finance and government.

He is a specialist in sophisticated financial optimization, the application of modern statistical techniques and mathematics to energy, deposit insurance and banking sectors.

Dr. Katata joined the service of the Nigeria Deposit Insurance Corporation in 2012 as an Assistant Director in the Research, Policy and International Relations Department and rose to the pinnacle of his career as Director in January 2022, before his new appointment as Executive Director (Operations).

 

 


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NIBBS: Banks Close 29.4m Accounts, Dormant Accounts Hit 33.39m

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Banks in Nigeria closed 29.4 million accounts as of March 2025, according to the latest report by the Nigerian Interbank Settlement System (NIBSS).

NIBBS: Banks Close 29.4m Accounts, Dormant Accounts Hit 33.39m

The figure represents a sharp year-on-year increase of 30.43 per cent from the 22.54 million closed accounts recorded in March 2024.

It also reflects a steady rise in account closures over recent months, with 33.29 million closed accounts reported in February 2025 and 29.43 million in January.

The report also revealed a significant increase in dormant accounts, which surged to 33.39 million in March 2025, up from 19.79 million in the same period in 2024, a 71.3 per cent rise in inactive accounts over the past year.

Despite the spike in closures and dormant accounts, the number of active bank accounts rose from 219.64 million in March 2024 to 320.05 million in March 2025, representing an increase of over 100 million, or 45.7 per cent.

NIBSS defines a dormant account as one that has seen no deposit, withdrawal, transfer, or point-of-sale transaction for a period of six months.

The surge in account closures and dormancy follows the Central Bank of Nigeria’s directive issued in December 2023, mandating commercial banks to restrict Tier-1 accounts not linked to a Bank Verification Number (BVN) and National Identification Number (NIN) by March 1, 2024.

In response to the directive, BVN enrolment increased from 61.6 million in April 2024 to 66.23 million by July 2025, as more Nigerians rushed to meet the CBN’s compliance deadline.

 

 


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Cardoso, CBN Boss Risks Arrest over Alleged N5.2 Trillion Unremitted Funds

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The Joint Committee of the House of Representatives on Public Accounts and Public Assets has threatened to issue a warrant of arrest against Mr. Olayemi Cardoso, governor of the Central Bank of Nigeria (CBN), over repeated failure to honour its invitations regarding the probe into non-compliance with the Fiscal Responsibility Act 2007 and Finance Act 2020.

Cardoso, CBN Boss Risks Arrest over AllegdedN5.2 Trillion Unremitted Funds

Olayemi Cardoso,, Gov, CBN

In a joint statement released on Friday and signed by Hon. Bamidele Salam and Hon. Ademorin Kuye,  chairmen of the committees, the lawmakers decried the CBN governor’s continued disregard for legislative summons.

The committee is investigating the non-remittance of operating surplus as well as the mismanagement of unclaimed dividends and dormant account balances.

According to the committee, the Office of the Auditor General for the Federation reported a liability of N5.2 trillion in unremitted operating surplus due to the federal government from 2016 to 2022; a claim corroborated by the Fiscal Responsibility Commission in a separate submission to the National Assembly.

The committee cited provisions of the Finance Act 2020, which mandate that unclaimed dividends from publicly listed companies and dormant bank account balances older than six years be transferred into the Unclaimed Fund Trust Fund. The fund is to be managed by a Governing Council led by the Minister of Finance and the Debt Management Office (DMO).

Contrary to this, the CBN maintains that the Financial Institutions Act 2020 empowers it to manage dormant balances.

However, the committee noted that the Attorney General of the Federation has issued a legal opinion affirming that the Finance Act 2020 remains the valid law guiding the management of such funds.

Following extensive submissions, the committee resolved that the CBN must remit N3.64 trillion, representing 70% of the undisputed N5.2 trillion operating surplus, within 14 days from receipt of its June 27, 2025, directive, pending final reconciliation of the disputed amount.

Additionally, the apex bank was directed to submit a detailed report on the total sum of unclaimed dividends and dormant account balances by June 30, 2025.

The CBN was also ordered to transfer these funds into the Unclaimed Fund Trust Fund within 14 days and furnish the House with evidence of the transaction.

The lawmakers expressed frustration that, despite the clear directives and ample time, the CBN governor has failed to respond or appear before the joint committee to provide an explanation.

“In view of this continued defiance, the Committee will be compelled to exercise its constitutional powers to compel Mr. Olayemi Cardoso to appear before it,” the statement warned.

 


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