Nigeria’s mobile money sector experienced expansion in 2024, with licensed operators, processing transactions worth N71.5 trillion between January and December. This represents a 53.4% surge from the N46.6 trillion recorded in 2023, signaling the deepening reliance on digital financial services across the country.
The volume of mobile money transactions also jumped by 23%, rising from three billion in 2023 to 3.9 billion in 2024, according to the Nigeria Inter-Bank Settlement System (NIBSS).
As digital adoption accelerates, industry analysts predict an even greater expansion in 2025, driven by rising smartphone penetration and a growing preference for seamless, cashless transactions.
At present, 17 companies are licensed by the Central Bank of Nigeria (CBN) as Mobile Money Operators (MMOs), a select category within Nigeria’s broader fintech ecosystem of over 200 firms. While all fintechs provide digital financial solutions, only these licensed MMOs are authorised to offer mobile money services, enabling millions of Nigerians to send, receive, and store money with ease.
Despite this surge, the industry faced a temporary setback in April 2024, when the CBN ordered leading mobile money platforms, including OPay, PalmPay, and Paga, to halt onboarding new customers. This move, which also affected non-mobile money fintechs such as Moniepoint and Kuda Bank, stemmed from concerns that their platforms were allegedly being exploited for illicit foreign exchange transactions through cryptocurrency trading. The restrictions were lifted after a month, allowing the operators to resume full operations.
Mobile money services enable users to initiate, authorise, and confirm financial transactions using mobile phones, providing a critical bridge for millions of unbanked and underbanked Nigerians.
Beyond mobile money, Nigeria’s electronic payments ecosystem reached new heights in 2024, with transactions across all digital channels hitting an all-time high of N1.07 quadrillion, according to NIBSS data.
Analysts attribute this rapid expansion to the CBN’s cashless policy and the lingering impact of cash scarcity, which have accelerated the transition to digital transactions. Under the revised cashless policy, which came into effect on January 9, 2023, individual cash withdrawals are capped at N500,000 per week, while corporate entities face a N5 million weekly limit.
As Nigeria continues its march toward a fully digital economy, mobile money is emerging as a cornerstone of financial inclusion, bridging gaps in traditional banking and driving the nation’s fintech revolution.