In the busy malls of Bauchi Winti Market in the capital city of Bauchi State in Northeastern Nigeria, hawkers and business people rub shoulders and digital transformation is steadily taking root.
One morning in December, Ruth Bala, a beverages vendor, watched as a young customer approached her stall, picked two bags of soft drinks, and smiled, “Do you accept transfers?” the Customer asked.
Ruth hesitated but directed him to a nearby Point of Sale (POS) agent, a common workaround for vendors who didn’t use mobile payment apps.
The transaction was completed in seconds, without cash exchanging hands. Ruth watched intently as the customer showed her the Opay app on his phone and explained how it worked.
She realised the convenience it offered, especially during cash shortages, which had become a recurring challenge in Nigeria over the last couple of years.
That evening, Ruth resolved to embrace the change. “I registered for a mobile payment app with the help of my niece, Mary, who had some digital literacy skills,” she told WikkiTimes.
Within weeks, Ruth noticed a difference in her business. Customers who previously left because they lacked cash began returning, praising her for offering digital payment options.
Like Ruth, Ayuba Iliyasu, a tomato farmer, based in Tafawa Balewa local government of Bauchi State, faced a similar challenge.
For years, urban retailers in cities like Bauchi and neighbouring Jos of Plateau State would pay middlemen to source tomatoes from farmers like Ayuba, who would often receive a fraction of the retail price.
This system left Ayuba at the mercy of intermediaries, who dictated prices and delayed payments.
He told WikkiTimes that things changed when his nephew Danladi introduced him to Opay, a mobile payment app with which he could now receive payments directly from retailers in the cities.
By sharing his Opay details, local farmers negotiated fair prices and eliminated the need for middlemen.
For the first time, he could confidently reinvest in his farm, buying better seeds and tools. “I no longer have to wait for weeks to get paid,” Ayuba said with a smile. “Now, I receive my money instantly.”
This reflects a growing narrative in Nigeria, where mobile payment apps are becoming a lifeline for economic activities in a society historically dominated by cash transactions.
Mobile Banking Apps
Mobile banking apps are another common payment system in Nigeria. These apps are developed by banks and fintech companies that users can download on their smartphones to access a wide range of financial services.
Nigeria is embracing a digital future with mobile payment apps, which enable individuals to send and receive money, pay bills, and manage finances via smartphones.
They offer more features compared to USSD, including account management, fund transfers, and bill payments.
The apps require internet access to function and users can perform various transactions like transferring funds, paying bills, and purchasing goods. The goal is to enhance financial inclusion and convenience for users.
With over 220 million citizens and a booming mobile penetration rate of over 90%, the potential of mobile payment apps to drive financial inclusion and economic growth is immense.
Statista, a statistics portal that integrates thousands of diverse topics of data and facts, predicts that the population share with mobile internet access in Nigeria to continuously increase between 2024 and 2029 by in total 16.8 percentage points and is estimated to reach 38.94% and therefore a new peak in 2029.
Mobile payments promote a cashless society, reducing the risks associated with cash handling.
They offer a safer alternative for both consumers and businesses, while reduced cash handling minimizes theft and loss.
The Rise of Mobile Payment Apps
The proliferation of mobile payment apps in Nigeria can be traced back to the Central Bank of Nigeria’s (CBN) cashless policy, introduced in 2012.
The policy aimed to reduce the volume of physical cash in circulation, foster digital payments, and curb financial crimes.
Today, fintech apps like Opay, Paga, PalmPay, and Kuda dominate the market, alongside traditional banks’ mobile apps, according to Statista.
Their appeal lies in convenience; Users like Ruth no longer need to stand in long queues at banks or deal with cash-handling challenges.
With a few taps on a smartphone, payments are completed in seconds. From drivers to online vendors, mobile payment apps have become indispensable tools, providing significant benefits that include financial inclusion, economic growth, reduced transaction costs, increased transparency, and convenience.
The apps bridge gaps for Nigeria’s large unbanked population, enabling SMEs to thrive, reducing intermediaries in transactions, creating accountability through digital trails, and allowing quick and hassle-free transactions for various activities.
e-Naira App as a Better Solution
According to Williams Uko, the Head of Strategy & Research at the Nigeria Inter-Bank Settlement System (NIBSS), Nigeria’s mobile payment ecosystem is dynamic and rapidly growing with mobile transactions increasing significantly in recent years.
He also explained that Nigeria’s e-Naira app is vital in moving toward a cashless economy.
Unlike traditional mobile payment platforms tied to individual financial institutions, the e-Naira app serves as a centralized digital banking system accessible to all bank customers.
It allows users to create a digital wallet that can be seamlessly integrated with any existing bank account or used independently.
This is to ensure that individuals, businesses, and even the unbanked population participate in digital financial transactions.
For Paul Daniel, a Bauchi-based financial expert, the e-Naira app promotes interoperability and streamlines digital payments nationwide by enabling instant payments across all banks and payment systems.
He added that the app facilitates a wide range of financial activities, including fund transfers, merchant payments, and bill settlements, offering an efficient, secure, and low-cost alternative to cash transactions.
Paul, however, noted that a significant number of Nigeria’s bank users remain unaware of the e-Naira app’s existence, emphasizing the need for increased awareness campaigns.
Increased Financial Inclusion
Mobile payment systems play a crucial role in increasing financial inclusion in Nigeria. Many Nigerians, particularly in rural areas, lack access to traditional banking services.
Mobile payments bridge this gap by providing financial services to the unbanked population. People without bank accounts can now store and transfer money using their mobile phone.
This inclusion empowers them to participate in the formal economy, improving their financial stability.
Additionally, mobile payments facilitate access to microloans, insurance, and savings programs, further enhancing economic opportunities for the underserved.
Challenges with Mobile Payment Apps
However, not all experiences with mobile payment apps have been positive. Alongside their benefits lie challenges that must be addressed to ensure an inclusive digital economy.
Bulus Dogara, a civil servant, was an early adopter of digital payments. Enthusiastic about the convenience, he frequently used various apps for bills, shopping, and transfers. One unfortunate incident left him frustrated.
Bulus received a text message that appeared to be from his mobile payment app, requesting him to verify his account details.
Believing it to be genuine, he followed the instructions and entered his personal information. Within minutes, N50,000 disappeared from his account. The message was a phishing scam, and Bulus had fallen victim.
He reported the incident to his bank, but recovering the funds proved impossible. “I trusted these platforms, but now I feel vulnerable,” he said.
An X user @marieD4U also shared his experience with the apps after three months of inaccessibility.
“How does it make sense that I haven’t been able to use my bank app for 3 months,” he wrote on his X account.
Despite numerous benefits, the journey toward a fully inclusive digital economy comes with challenges.
Unreliable network infrastructure, characterised by poor connectivity and frequent outages, hampers seamless usage, especially in rural areas.
Mistrust and limited awareness about the security and benefits of mobile payment apps deter users, particularly in rural and underserved areas with little or no banking access.
Regulatory challenges and unclear policies create uncertainty for service providers, stifling innovation and expansion.
Additionally, fraudulent activities, including scams and fake apps, result in financial losses for users, and unauthorized access, and erode trust in these platforms.
Many platforms lack interoperability, complicating transactions across different systems, while poor customer support and slow dispute-resolution processes exacerbate user frustrations.
Experts’ Views
Experts suggest that addressing these issues through enhanced infrastructure, cybersecurity measures, user education, and supportive policies can create a more inclusive digital payment ecosystem and accelerate Nigeria’s transition to a cashless economy.
Paul Daniel, a financial expert, believes that digital literacy gaps are among the most significant barriers, as a substantial portion of the population struggles to navigate digital financial platforms.
“Many people including those in cities still find mobile apps intimidating. Digital literacy campaigns need to be scaled up to ensure inclusivity.”
“Unreliable network infrastructure is another challenge, characterised by poor connectivity and frequent outages that hinder seamless usage, particularly in rural areas.”
Sadiq Mohammed, a telecom entrepreneur in Jos Plateau State, pointed out, “The lack of stable internet connectivity, especially in underserved areas, is a major bottleneck for the digital economy. Without a reliable infrastructure, mobile payments will remain inaccessible to millions.”
He emphasized the need for enhanced security measures, such as multi-factor authentication and real-time fraud detection systems.
“This mistrust and limited awareness about the security and benefits of mobile payment apps also deter users,” he stressed.
For Paul and Sadiq, with targeted efforts, these issues can be resolved to create a more inclusive and efficient digital payment ecosystem.
They corroborated that the targeted approaches would accelerate the country’s transition to a cashless economy and unlock economic opportunities for millions of Nigerians.
“Nigeria has the potential to lead Africa’s digital financial revolution. But it requires intentional investment in infrastructure, policies, and education,” Sadiq concluded.
For millions of vendors like Ruth and Ayuba, digital payments are a convenience and a lifeline in an economy that frequently battles cash shortages and unpredictability.
Similarly, financial independence through mobile apps shows the potential of digital transformation to empower even the most marginalized.
Their stories show that digital payment systems remain tools of convenience and catalysts for hope and progress for Nigeria’s traders, farmers, and everyday citizens.
The transition from scepticism to the widespread adoption of mobile payment apps reflects a major shift sweeping across the country, and showcasing how accessible and user-friendly digital tools can transform lives.
