Cash payment in Nigeria will fall by 4.0% by 2027 with share in PoS transactions falling to 42% from 55% as at 2023.
These projections were contained in the Global Payment Report, GPR 2024 published by Worldpay, a payments technology and solution company.
Among other things the report, titled, “How consumer choice is changing commerce”, showed that Nigeria has the highest dominance of cash in e-commerce payments method among Middle East and Africa countries in 2023. According to the report, Nigeria had 15% share cash on delivery and 32% account to account share; the top in e-commerce payment method among Middle East and Africa countries in 2023.
The report said: “Cash remains the undisputed consumer choice of Nigerian consumers.
“Cash accounted for 55% of 2023 PoS transaction value, the highest share in this report.
“Cash’s importance translates to e-commerce; where cash on delivery represented 15% of 2023 e-com spends, second only in this report to Vietnam’s 17%.
“February 2023 saw a cash crisis when Nigerians took to the streets in protest over the lack of sufficient banknote availability.
“The Central Bank of Nigeria, CBN, had intended to sunset existing currency to be exchanged for new notes.
“The Nigerian Supreme Court stepped in to force continued acceptance of the old notes.
“In November, the CBN retracted the plan ending months of uncertainty by declaring the old notes would remain legal tender”.
“Nigerians are turning to digital payments as cash is forecast to
decline in use at 4% compound annual growth rate ,CAGR, from 2023 to 2027 – yet cash is forecast to retain supremacy through 2027 with 42% share of PoS spend.
“Cash on delivery is projected to gradually cede share, to an estimated 9% of e-commerce value by 2027.
“Efforts by the CBN to implement digital cash have proved challenging.
“A May 2023 IMF working paper assessed Nigeria’s Central Bank Digital Currency ,CBDC, e-Naira as “disappointingly low”.
“Launched in October 2021, e-Naira has yet to reach even 1% of Nigeria’s consumers”.
