Onome Amuge
Nigeria’s payments industry is on track to become a continental powerhouse, with revenues projected to soar from $1.3 billion in 2024 to $4.7 billion in 2029, according to the 23rd Global Payments Report released by Boston Consulting Group (BCG).
The report, titled “The Future Is (Anything but) Stable”, situates Nigeria as a pivotal driver of Africa’s payments revolution, with transaction-related revenues expected to expand at a compound annual growth rate (CAGR) of 23 per cent, while non-transaction revenues, such as account services and ancillary fees, are forecast to grow at an even faster 26 percent.
This growth trajectory is underpinned by rapid digital adoption and fintech-driven innovation. Mobile onboarding, QR code payments, and the expansion of point-of-sale networks are transforming how Nigerians transact, gradually reducing reliance on cash while drawing millions into the formal financial system.
“With the Central Bank’s Vision 2025 and fintech-led advances like mobile onboarding and QR adoption, Nigeria’s payments revenues are set to grow rapidly, fuelled by the shift from cash to cards and real-time transfers. This progress is not only boosting financial inclusion and opportunity within Nigeria but also underscores the continent’s emergence as a global payments innovation leader,”said Tolu Oyekan, managing director and partner at BCG Lagos.
Across Africa, payments revenues are expected to nearly double from $9 billion in 2024 to $19 billion by 2029, growing at a CAGR of 10 per cent,almost three times the global sector’s 4 percent. Globally, BCG estimates revenues will rise from $1.9 trillion in 2024 to $2.4 trillion by 2029.
Analysts say Nigeria’s outsized contribution to this growth will carry wider implications for capital flows into Africa. As the largest fintech market on the continent, Nigeria has already attracted substantial venture and private equity funding into its payments ecosystem. The anticipated revenue surge could intensify investor appetite, particularly as global players look to hedge slowing growth in developed markets by tapping into emerging economies with strong digital adoption.
But the opportunities come with challenges. High transaction costs, patchy infrastructure, cyber risks, and lingering cash dependency in rural areas could slow progress if not addressed. Industry stakeholders argue that bridging these gaps will require sustained collaboration between regulators, banks, fintechs, and telcos, with incentives to expand last-mile digital infrastructure.
For policymakers, the sector’s acceleration offers a potential fiscal dividend. Broader electronic payment adoption is expected to expand the taxable base, support monetary policy efficiency, and reduce the size of the informal economy.
