Cash payment in Nigeria to fall 4% by 2027 — Report

•Cash accounts for 55% of transactions in 2023

Cash payment in Nigeria will fall by 4.0 per cent by 2027 with share in PoS transactions falling to 42 per cent from 55 per cent 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 percent share cash on delivery and 32 percent 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 percent of 2023 POS transaction value, the highest share  in this report.

“Cash’s importance translates to  e-commerce; where cash on delivery  represented 15 percent of 2023 e-com spends, second only in this report to Vietnam’s 17 percent.

“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 – cash is forecast to  

decline in use at -4 percent compound annual growth rate (CAGR) from 2023 to 2027 – yet cash is forecast to retain supremacy through 2027 with 42 percent share of PoS spend.

“Cash on delivery is projected to  gradually cede share, to an estimated 9 percent 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 percent of Nigeria’s consumers.”

https://www.vanguardngr.com/2024/08/cash-payment-in-nigeria-to-fall-4-by-2027-report/