Cash vs Digital: Nigeria’s Cashless Dream Meets Street Reality - Newstrends
Connect with us

Business

Cash vs Digital: Nigeria’s Cashless Dream Meets Street Reality

Published

on

PoS Operator

Cash vs Digital: Nigeria’s Cashless Dream Meets Street Reality

By Dr Ramanathan Murugesan, FCA, CPA

On a humid afternoon in Lagos, 24-year-old Adaeze sways inside a crowded danfo bus—one hand clinging to a metal rail, the other navigating her phone. Within seconds, she transfers her fare to the conductor. No notes. No coins. No delay.

A few kilometres away, at a roadside fruit stall, the future stalls.

A customer reaches for his phone. “Transfer?” he asks.

The vendor doesn’t hesitate. “No network. Bring cash.”

In that moment lies the paradox of modern Nigeria.

Digital payments are booming, yet cash refuses to fade. After more than a decade of policy reforms and fintech disruption, Africa’s largest economy is not cashless. It is something far more complex—a nation suspended between innovation and infrastructure, trust and uncertainty.

Policy spark, behaviour shift

Nigeria’s cashless journey began in 2012, when the Central Bank of Nigeria rolled out policies to curb cash usage and modernise payments.

On paper, the transformation is undeniable.

Data from the Nigeria Inter-Bank Settlement System shows electronic transactions rising steadily year after year. The NIBSS Instant Payment platform has become the backbone of real-time transfers, powering everything from salary payments to street-level commerce.

Traditional banks—Access Bank, Guaranty Trust Bank (GTBank), Zenith Bank, and United Bank for Africa (UBA)—have reinvented themselves as digital-first institutions. Alongside them, fintech disruptors like Flutterwave, Paystack, Opay, and PalmPay have democratised payments, turning smartphones into wallets.

READ ALSO:

In Nigeria’s cities, cash is no longer king—it is contested territory.

Fintech’s quiet revolution

If policy lit the spark, fintech fanned the flames.

For decades, millions of Nigerians existed outside the formal banking system. Fintech changed that—swiftly and at scale. With minimal paperwork and mobile-first platforms, financial services reached markets banks had long ignored.

Nowhere is this more visible than in the explosion of PoS agents. Across urban streets and rural corners alike, small kiosks double as micro-banks, handling deposits, withdrawals, and transfers.

For small businesses, this shift has been transformative. Digital payments reduce the risks of holding cash, expand customer options, and streamline operations.

Yet the revolution is uneven.

While Lagos and Abuja surge ahead, large parts of rural Nigeria remain on the margins—held back not by resistance, but by access.

Pandemic acceleration, structural exposure

Then came COVID-19—a crisis that doubled as a catalyst.

Lockdowns and health concerns pushed millions toward contactless payments. What began as necessity quickly hardened into habit, particularly among younger Nigerians.

E-commerce surged. Digital wallets swelled. Platforms like Flutterwave and Paystack recorded spikes in transaction volumes as businesses rushed online.

But beneath the growth lay fragility.

The system expanded faster than the infrastructure supporting it.

The naira redesign stress test

That fragility was laid bare during the 2022–2023 naira redesign.

As old notes were withdrawn and new ones rationed, Nigeria plunged into a cash crisis. ATMs ran empty. Banking halls overflowed. Frustration boiled over.

In desperation, millions turned to digital channels.

Transaction volumes surged—but so did failures.

Across banking apps and fintech platforms, transfers hung in limbo. Alerts delayed. Systems crashed under pressure. From GTBank to Opay, the message was the same: Nigeria’s digital rails were not yet built for shock.

The episode was more than a policy misstep—it was a stress test the system failed.

Infrastructure: The Achilles’ heel

At the heart of Nigeria’s cashless struggle lies a stubborn truth: infrastructure still lags ambition.

Unreliable electricity disrupts devices, servers, and networks. Patchy internet connectivity turns simple transfers into uncertain gambles. For millions, “transaction failed” is not an exception—it is routine.

For a roadside trader, a failed payment is not a technical glitch. It is lost income.

Cash, by contrast, is brutally simple. It works—every time.

Trust: The currency behind the currency

Beyond infrastructure lies an even more delicate issue: trust.

Digital systems promise speed, but not always certainty. Fraud, phishing, and account breaches continue to erode confidence. When transactions fail, reversals are often slow and opaque.

For many Nigerians—especially those outside the tech-savvy demographic—this uncertainty is costly.

Cash offers something digital still struggles to replicate: finality.

No pending alerts. No reversals. No doubt.

The informal economy’s quiet resistance

Any conversation about Nigeria’s payment future must confront its informal economy—vast, dynamic, and deeply cash-driven.

From open markets to roadside workshops, a significant share of economic activity operates beyond formal systems. Here, cash is not just convenient—it is strategic.

Digital payments leave trails. Cash offers discretion.

For many, the choice is not about technology, but about control.

Bringing this sector into the digital fold will require more than apps and policies. It will demand trust, incentives, and a system that works reliably at the last mile.

A nation split by access

Nigeria’s digital transition is also generational—and geographical.

Urban youth have embraced fintech with speed and ease. Smartphones, apps, and instant transfers are second nature.

But in rural communities and among older populations, adoption lags. Limited access to devices, connectivity, and digital literacy continues to widen the gap.

The result is not a unified shift, but a fragmented transition.

Cashless or cash-light?

So, has Nigeria gone cashless?

Not quite.

What has emerged instead is a “cash-light” economy—one where digital payments thrive, but cash remains indispensable.

Consumers toggle between both worlds. When networks are stable, digital wins. When systems falter, cash takes over.

This duality is not a failure. It is a reflection of reality.

The road ahead

Nigeria’s path to a truly cashless economy will not be decided by policy alone.

It will depend on power supply that does not fail, networks that do not drop, and systems that do not crash under pressure. It will require stronger consumer protection, faster dispute resolution, and deeper financial literacy.

Most importantly, it will demand trust—earned not through promises, but through performance.

An economy in motion

Nigeria is no longer where it was a decade ago. Digital payments have moved from the margins to the mainstream.

But cash remains embedded—resilient, reliable, and, for many, indispensable.

For now, the country exists between two financial realities—neither fully digital nor entirely cash-based.

It is an economy in motion, where the future of money is being shaped not just in boardrooms and policy circles, but in buses, markets, and roadside stalls.

And in Lagos, that future is decided every day—in a simple, familiar choice: Pay with a phone, or pay with cash.

 

Cash vs Digital: Nigeria’s Cashless Dream Meets Street Reality

Loading

Auto

Jetour Set to Storm Abuja Show with Rugged Luxury T2 

Published

on

Jetour Set to Storm Abuja Show with Rugged Luxury T2 

 

Abuja is set for a taste of rugged luxury as Jetour Nigeria puts its adventure-ready T2 SUV in the spotlight at the Jetour Experience Abuja from September 22 to 24, 2026, giving motorists in the Federal Capital Territory and neighbouring states an opportunity to test its blend of off-road capability, premium comfort and advanced technology.

The three-day showcase at Maha Event Centre, Area 8, Garki, will feature test drives, live demonstrations and direct interaction with Jetour product specialists, offering prospective buyers a closer look at the T2 and other models in the automaker’s growing Nigerian line-up.

Positioned as a premium SUV combining off-road capability with comfort and advanced technology, the Jetour T2 is designed for motorists seeking a vehicle capable of handling both city driving and challenging terrain.

Jetour Nigeria is distributing the T2 and other models via its seven accredited dealers — Elizade Nigeria Limited, New Era AutoVehicle Services Limited, Germaine Auto Centre, Kojo Motors, Mandilas Autos, R.T. Briscoe Motors and Tab Autos Limited.

The T 2 SUV is powered by a 2.0-litre turbocharged engine producing 254 horsepower and 390 Nm of torque. The engine is paired with a seven-speed dual-clutch transmission and BorgWarner sixth-generation intelligent four-wheel-drive system.

It also features five driving modes — Eco, Sport, Mud, Rock and X Smart — designed to provide improved adaptability across different road and terrain conditions.

Measuring 4,758mm in length, 2,006mm in width and 1,880mm in height, the SUV offers 220mm ground clearance and a 70-litre fuel tank, giving it the capability for extended journeys and off-road adventures.

Inside the cabin, the T2 combines rugged styling with modern comfort, featuring ergonomic seating and a 15.6-inch touchscreen infotainment system with Apple CarPlay, Android Auto and intelligent voice control.

Its safety and driver-assistance features include a 360-degree panoramic camera, rear parking sensors, Lane Departure Warning, Blind Spot Detection, Anti-lock Braking System and Emergency Brake Assist.

The SUV also comes with off-road crawl control as well as push-button and remote-start functions.

The Abuja experience follows Jetour Nigeria’s recent showcase in Lagos as the automaker continues to expand its presence and customer reach across the country.

With its combination of performance, technology, safety and luxury, the Jetour T2 is expected to attract motorists seeking an SUV capable of combining everyday urban mobility with adventure and off-road driving.

Loading

Continue Reading

Business

NCAA Moves Against Airlines Over Rising Flight Delays

Published

on

NCAA Moves Against Airlines Over Rising Flight Delays

Thousands of Nigerian air passengers faced delays in August as domestic airlines struggled to keep to their scheduled flight times.

Now, the Nigerian Civil Aviation Authority (NCAA) says it is taking regulatory steps that could lead to sanctions against airlines responsible for persistent delays.

The regulator’s August data showed that 4,765 of 7,961 scheduled domestic flights were delayed. In other words, nearly 60 per cent of the flights did not leave as scheduled.

Air Peace and United Nigeria Airlines recorded some of the highest delay rates, with 71 per cent and 76 per cent of their flights respectively affected.

NCAA Warns Airlines

NCAA Director of Public Affairs and Consumer Protection, Michael Achimugu, said that the regulator had already engaged some of the airlines involved.

According to him, the NCAA met with Air Peace, United Nigeria Airlines and Max Air and issued stern warnings over their operations.

The authority is now weighing further regulatory measures as the problem continues to affect passengers.

Achimugu also urged travellers to consider other airlines when repeated delays make a particular carrier unreliable.

When one airline is continuously misbehaving, buy tickets on another airline and make your flight” he said.

READ ALSO:

Passenger Rights Put Enforcement Under Spotlight

However, aviation consultant Capt. John Ojikutu believes the recurring problem exposes a wider weakness in the sector.

Ojikutu said Nigeria has regulations intended to protect air travellers, but questioned how consistently those rules are enforced.

The regulation is there to protect the customer. What is the enforcement?” he said.

He noted that passengers can report violations to the appropriate authorities. But, in his view, regulators must follow up on those complaints with meaningful action.

The aviation expert also recalled experiencing severe delays himself.

He said he once travelled to Abuja and passengers had to board an aircraft three times before another plane was brought in to complete the journey.

The disruption, he said, left him returning to Lagos considerably later than expected.

Are Airlines Planning Their Routes Properly?

Ojikutu also linked the industry’s problems to the way some airlines plan their operations.

He questioned the number of carriers competing on the Lagos-Abuja route, particularly when several airlines operate multiple flights each day.

His argument is that airlines should first establish the level of passenger demand before selecting routes, aircraft sizes and flight frequencies.

According to him, deploying aircraft capable of carrying more than 100 passengers without sufficient demand can put additional financial pressure on an airline.

He therefore advised carriers to consider routes with enough passengers but less competition.

Smaller Aircraft Could Serve Regional Routes

Ojikutu said the industry could also learn from the operational model used by the former Nigerian Airways.

He recalled that the airline used larger aircraft on major routes while smaller planes connected regional destinations to major airports.

He suggested that modern carriers could adopt a similar approach by connecting cities such as Sokoto, Kaduna, Jos and Minna to larger aviation hubs.

Rather than having every airline compete directly on major routes, he said carriers could develop regional networks that feed passengers into bigger airports.

He also called for more airlines to establish bases outside Lagos.

According to him, encouraging operations in other parts of the country could reduce the heavy concentration of airlines in Lagos and create stronger regional connections.

Concern Over Airline Survival

Ojikutu further questioned the short lifespan of many Nigerian airlines.

He attributed part of the problem to weak business planning and argued that airlines should present credible, sustainable plans before receiving regulatory approval to operate.

The latest development therefore puts both airlines and the aviation regulator under scrutiny, as passengers continue to deal with delays despite existing rules designed to protect them.

NCAA Moves Against Airlines Over Rising Flight Delays

Loading

Continue Reading

Business

Fuel Prices Climb to ₦1,500 per Litre Across Nigeria, Sparking Calls for Urgent Action

Published

on

Fuel Prices Climb to ₦1,500 per Litre Across Nigeria, Sparking Calls for Urgent Action

Workers’ unions and fuel sellers appeal to the government to protect families from soaring transportation and food costs.

Fuel stations across Nigeria have raised the price of petrol to as high as ₦1,500 per litre, creating fresh financial strain for working people, small business operators, and families. Across cities such as Kano, Maiduguri, Damaturu, and Sokoto, drivers and commercial riders now pay higher rates at the pump, while stations in central and southern communities also report steady increases.

Because transportation costs directly influence the price of everyday essentials, bus drivers and tricycle operators have raised passenger fares to cover their fuel bills. As a result, parents and commuters face steeper daily travel expenses and rising grocery bills.

READ ALSO:

To address this pressure, the Nigeria Labour Congress urged federal authorities to step in quickly with practical relief measures. These proposals include providing cost-of-living allowances to workers, ensuring local refineries can purchase crude oil directly in local currency, and using surplus oil earnings to keep pump prices affordable.

At the same time, fuel sellers warned that pump prices could rise even further if international oil markets remain volatile. Retail associations noted that recent wholesale adjustments from local refineries have increased costs for station owners, who must pay more to restock their tanks.

To keep fuel affordable for the general public, union leaders and station operators are encouraging the government to reduce shipping and regulatory fees, helping ensure that reliable energy remains accessible to every community across the country.

Fuel Prices Climb to ₦1,500 per Litre Across Nigeria, Sparking Calls for Urgent Action

Loading

Continue Reading

Trending