The transition to a cashless policy as a method of eliminating cash was high on Nigeria's government agenda in the last quarter of 2022.

The move, fuelled the country's Apex bank, the Central Bank of Nigeria to roll out new banknotes and reduce cash withdrawal limits, which created a critical cash crunch at the beginning of 2023.

As a result of the cash conundrum, Point of Sales (PoS) transactions in the country increased by 40.7% YoY to reach ₦807.16 billion in January 2023, according to data from the Nigeria Inter-Bank Settlement System, with total cashless transactions in Nigeria rising by 45.41% YoY to reach ₦39.58 trillion in January 2023.

CHART: Mobile Transfers in Nigeria Surged 231% in January 2023
According to government data, mobile transfers in Nigeria have experienced a significant year-on-year increase of 230.6% in January 2023, driven by the Central Bank of Nigeria’s (CBN)’s cashless policy. Experts have attributed the surge to the CBN’s deadline for the collection of old naira notes, a…

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