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Are there Really Cashless Economies?

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By Yvonne-Faith Elaigwu, Head of Operations and Governance, OnePipe

‘Cashless’ has probably become one of the most popular words in Nigeria in the last few months. While it can be defined in different ways, it has one universal meaning and is characterised by the exchange of funds for goods and services by methods other than the use of cash.

This little or no dependence on cash is not forced by an inability to queue for hours at an ATM or an unwillingness to pay an exorbitant fee to a PoS or mobile money agent. No, this little dependence on cash is because of the ability to meet financial obligations without necessarily needing to handle cash.

You are probably thinking about the western world and the level of development that makes this their reality but some very solid examples of cashless economies also exist in Africa.

One of the easiest ways to identify a Nigerian in Kenya for example (excluding the Naija-ness) is by how they transact. As a Nigerian visitor, you are very likely to pay in cash when you buy food, shop at a neighbourhood market, buy things from the roadside or visit a tourist centre. This alone – paying in cash everywhere – is more likely to scream “foreigner” than if you had worn a green-white-green Ankara at that time.

When the M-Pesa platform marked its 15 year anniversary last year, it had grown to more than 51 million customers, 465,000 businesses, 600,000 agents, and 42,000 developers across Kenya, Tanzania, Mozambique, the Democratic Republic of Congo, Lesotho, Ghana, and Egypt, as reported by Business Insider.

Ghana, our neighbours, digitised their economy with Mobile Money. The Bank of Ghana in its payment systems annual report for 2021, reported that its volume of Mobile Money transactions increased to 4.25 billion in 2021, representing a 47.1 percent growth, compared to 2020. Similarly, the total value of transactions increased to GH¢ 978.32 billion in 2021, from GH¢ 571.80 billion in 2020.

In dollar terms, the value of transactions in 2021 was $75 billion (based on current exchange rates). For perspective, Ghana’s GDP was $77.59 billion that same year. This essentially shows us mobile money transactions could cover the entire economic activities in Ghana (when currency devaluation over the past year is factored in).

The Carnegie endowment for international peace also referencing a BOG report, said in recent years, Ghana has been identified as one of the biggest mobile money markets and the fastest-growing one in Africa with 40.9 million accounts as at February 2021. Again, for context; the population of Ghana is 32.8 million. A Business Day report in 2019, noted that in Ghana, the utilisation of Mobile Money has become so ubiquitous, that it no longer has a wow effect, and is just a part of their everyday life. The average Ghanaian can go about his or her day and be productive without ever needing to transact with cash, just like their peers in Kenya and other countries where cash is increasingly less important.

Somalia’s journey to a cashless economy is perhaps the most inspiring. It is recorded that between 1990 and 2013, Somalia received no foreign direct investment, and the monetary system broke down with the collapse of the Somali Central Bank. The Somali government installed its first ATM in 2014, but the progress of its wider digital economy has been astonishing. The Somali Central Bank introduced a central payments system in August 2021 which connects the nation’s 13 lenders, and formalises digital payments, making payments easier for people across the country.

According to a report by the World Bank published in 2018, almost three-quarters of the Somali population aged 16 and older use Mobile Money. Somalia’s Gross Domestic Product, grew by an estimated 2.9 percent in 2019 and by 3.2 percent and 3.5 percent in 2020 and 2021 respectively. Eight years after the installation of their first ATM, Somalia is now recognized globally as a cashless economy.

Today, in its urban centres, Mobile Money penetration is over 80 percent. Even in rural areas, it has become the currency of choice, with a penetration rate of 55 percent.

Need we add examples of the western world? Maybe just a few.

In 2022, Merchant Machine ranked Norway on the list of 10 countries closest to a completely cashless society, with cash accounting for only 2 percent of all payments in Norway, 100 percent of its population owning a bank account, and 71 percent also owning a credit card.

It was followed by Finland with the same small percentage of cash-based payments ( 2 percent) and none of its citizens going without a bank account, then New Zealand also having two percent cash-based payments but a very slightly higher unbanked population of one percent.

The UK ranks lower at number eight due to a slightly smaller percentage of credit card users (65 percent) and higher percentage of unbanked population (3 percent). However, it sees less cash-based payments overall, with just 1 percent of all payments being made with notes and coins.

Now imagine a scenario where you navigate the city of Lagos without worrying about “change”, or whether the cash in your hand is not counterfeit or too worn out. Imagine not worrying about making any payments, not because you are a Dangote or because Otedola is your daddy, but because you have various payment options in your pocket or at your disposal; cards, phone, apps, USSD codes etc. More importantly, imagine that your transactions are happening within the banking ecosystem, your bank therefore has visibility into your spending patterns and is able to adequately profile you to access credit. Despite the promising future a cashless economy offers, the experiment in India has offered the rest of the world some lessons on how not to go about it. The Economic Times of India for instance, noted that after invalidating 86 percent of the currency in circulation (the 500 and 100 notes), the government started scrambling to promote digital payments, yet, only about half of Indian adults had bank accounts, and only about a quarter had internet access. Mobile payments were rare and even if everyone had wanted to go digital, they couldn’t have.

The lesson? Before going cashless, alternatives should not only be in place, but reliable too. India’s move towards going cashless has not been a complete failure but it came at huge human and economic loss.

An article on The Balance Money describes a cashless society as one where all transactions are electronic, using debit or credit cards or payment services like PayPal, Zelle, Venmo, and Apple Pay. In Nigeria, we have companies like OnePipe, offering technologies that digitise and simplify payment processing to downplay the dependence on cash.

Although not a lot of societies are truly cashless, many economists believe that consumer preferences, competitive pressures on businesses, profit seeking by banks, and government policies designed to facilitate cashless transactions will soon lead to more cashless societies which eventually lead to economic growth.


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Ugo Onwuaso is an ICT enthusiast. He believes technology should be used for general good. He holds a Master of Public Administration (MPA) degree from the Lagos state University. Dear Reader, Your support matters. But we believe that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. That is why, we have devoted our energy to independent reportage of technology and finance and how they affect lives. Our incisive and analytical view of how technology news affects the daily life help individuals and organizations make up their minds. Quality journalism costs money. Today, we're asking that you support us to do more. Kindly support our effort to deliver technology and finance journalism to everyone in the world. Donate as little as N1,000. Bank transfers can be made to: UBA Plc 1017156876 Communication Week Media Ltd

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Youth Talent Takes Center Stage as T2 Ignites High-Octane Rap Battles @ Carnival Calabar

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The energy at the Carnival Calabar Music Concert reached a new high as T2 introduced a first-ever rap battle platform, giving young Nigerians an electrifying stage to showcase their talent, creativity, and self-expression while competing for exciting prizes.

Held at the U.J. Esuene Stadium, the activation blended pulsating music, vibrant culture, and youthful energy into a dynamic celebration that kept thousands of carnival-goers fully engaged from start to finish.

Eight fearless contestants stepped into the spotlight, going bar for bar in an intense lyrical showdown. Rappers fused local languages, pidgin, and sharp punchlines, creatively weaving the T2 brand into their verses.

Anchored by the energetic hosting duo MC Double I and MC Princess, the rap battles thrilled over 16,000 attendees, including the Governor of Cross River State, Senator Bassey Otu, delivering an unforgettable showcase of youth talent and cultural expression.

With prizes including fridges, gas cookers, sound systems, and airtime top-ups, the competition remained fierce throughout the night. After two high-energy rounds narrowed the field to a five-man final duel, Emmanuel Eye emerged as the overall winner, taking home the grand prize — a fridge.

“I never expected this at all,” Emmanuel said. “I came to the concert like anyone else, and hearing about the T2 rap battle was a surprise. When I got the chance to perform, I just went for it. Being named the overall winner is amazing, and I’m grateful to T2 for creating this platform to showcase our talent.”

Beyond the stage performances, T2’s presence added a digital layer to the carnival experience. As part of its role as Digital Technology Partner of Carnival Calabar, the brand introduced the MyT2 App as a lifestyle companion, while also enabling line reactivations, airtime top-ups, and instant rewards for hundreds of attendees, blending technology seamlessly into the live celebration.

Commenting on the activation, Chinelo Manefo, Specialist, Events and Sponsorship at T2, said:

“The energy from both the rappers and the crowd was incredible. This platform reflects exactly what T2 aims to create — a celebration of youth, creativity, and culture, enhanced by technology that connects people and experiences. Seeing the audience so immersed shows how music and performance can empower the next generation.”

The Carnival Calabar Music Concert, headlined by Tiwa Savage, Timaya, and top local performers, was further energized by T2’s interactive rap battle platform. By blending music, culture, youth expression, and digital innovation, T2 reinforced its commitment to championing Nigeria’s next generation, giving young creatives a stage to shine while enriching how they experience the festival.

 


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Aig-Imoukhuede Foundation Wrapped Up 2025 with Real Change in Governance, Health, Media Across Africa

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Aig-Imoukhuede Foundation has announced its 2025 achievements, marking a year of accelerated impact, systemic reforms and innovation in public leadership and service delivery across Africa.

Aig-Imoukhuede Foundation Wrapped Up 2025 with Real Change in Governance, Health, Media Across Africa

Aig-Imoukhuede Foundation

A statement issued on Wednesday in Lagos said the foundation strengthened governance, improved primary healthcare, drove digital transformation and elevated media’s role in promoting public sector accountability.

It said the AIG Public Leaders Programme (PLP) trained 72 public sector leaders from Nigeria, Egypt, Tanzania, Cameroon, Zambia, Malawi and Kenya—its fastest growth to date—bringing the alumni network to 309.

These alumni are driving 237 reform projects to enhance public institutions, from faster decision-making to greater transparency, with nine promoted to higher roles for their contributions.

On civil service modernisation, the foundation accelerated digitalisation at the Office of the Head of the Civil Service of the Federation (OHCSF), streamlining 19 processes and achieving a 75 per cent increase in work speed through automated workflows.

It also trained over 400 officials from the Federal Ministry of Justice, Federal Civil Service Commission and Federal Ministry of Innovation, Trade and Investment in digital skills to support the FCCSIP 25 initiative and ongoing digital rollouts.

In healthcare, the Adopt-A-Healthcare-Facility Programme renovated four primary healthcare centres in Edo State, boosting antenatal visits by 73 per cent, immunisation coverage over 100-fold and fully vaccinating 554 children, while supporting 6,788 patients.

The foundation recognised 18 outstanding public servants with ₦500,000 each via the Emily Aig-Imoukhuede Endowment Awards and received a partnership award from the OHCSF for civil service reform efforts.

To empower media, it trained 50 journalists from top Nigerian media houses in impact storytelling, data analysis, visual and ethical reporting to better inform citizens on public sector changes.

Over five years (2021–2025), the foundation invested £2.6 million in PLP, saved ₦2.38 billion for the public sector through capacity building, trained 1,500+ civil servants, upskilled 660 digitally, trained 40 permanent secretaries and awarded 33 scholarships driving seven policy changes.

Other milestones include digitising 5,000 files, automating 333 processes, a 61 per cent efficiency gain, 60 per cent digital file creation at OHCSF, 128 excellence awards, 116 process reforms, 23 advocacy projects, 25 capacity initiatives, 18 podcasts, four healthcare articles, three policy papers, 23 adopted PHCs (four renovated) and 878+ fully immunised children aged 0–9 months.

Executive Vice Chair, Mr Aigboje Aig-Imoukhuede, said: “2025 was a year of real, measurable impact. From training hundreds of public servants to improving healthcare, helping ministries go digital, and equipping journalists to tell stories that matter, our work is making governments work better for citizens and communities across Africa.”


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Showmax Unlocks Easier Payments for Nigerian Subscribers via Baxi

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Showmax, Africa’s leading streaming service, has expanded its payment options in Nigeria through a partnership with Baxi by Onafriq, giving customers an easier and more convenient way to subscribe and stay connected to world-class streaming entertainment.

Started Monday, 22 December 2025, existing Showmax customers can log into the Baxi by Onafriq app, select and pay for any of Showmax plans including: Showmax Entertainment Mobile, Showmax Entertainment (All Devices), Showmax Premier League Mobile, Showmax Entertainment (All Devices) + Premier League Mobile, Showmax Entertainment Mobile + Premier League Mobile.

This update allows customers to complete their entire subscription process within the Baxi app, delivering a more efficient payment experience.

Alternatively, existing customers with verified mobile numbers can top up their Baxi by Onafriq app or through its Baxi POS agent device to load funds directly into their Showmax account. These funds can then be used to pay for a Showmax plan.

For new customers, subscribing is also seamless. After creating a Showmax account on their mobile device, they will receive an OTP via SMS or WhatsApp, which allows them to verify their mobile number and immediately return to the app to top up and activate their subscription.

Speaking on the announcement, Tope Oshunkeye, Executive Head of Marketing, West Africa, MultiChoice, said: “With these new payment options from Baxi by Onafriq, we are making streaming on Showmax more accessible, allowing our customers to pay quickly and securely through a trusted financial service provider. This is a significant step forward in our mission to deliver world-class streaming experiences for our customers”.

“This launch is about making entertainment access seamless,” said Mxolisi Msutwana, Managing Director, Anglophone West Africa, Onafriq. “By automating the renewal process, we are not only providing greater convenience for customers but also helping to drive the adoption of digital payments across Nigeria.”

With more people turning to digital services, Showmax is doubling down on its commitment to make it affordable and effortless for customers to access and stream the stories they love. By partnering with Baxi by Onafriq, a popular agent and digital payment network, Showmax is meeting subscribers where they already are.

Showmax, launched in 2015 and available in more than 40 markets across the continent, is a leading African streaming service. It offers a unique combination of original African content, first and exclusive international series, popular movies, premium documentaries and the best kids’ shows, plus a mobile-only product to watch the Premier League.

Onafriq is an omnichannel network of networks, making borders matter less by providing our partners with a single pathway to unlock the full power of cross-border and cross-platform payment solutions. With a network spanning 43 African markets, Onafriq connects over 1 billion mobile money wallets, 500 million bank accounts, and over 400,000 agents in Nigeria, enabling domestic and cross-border disbursements and collections, card issuing and processing, agency banking, and treasury services.

In Nigeria, Onafriq operates as a B2B payments enabler with an extensive agency banking network through its flagship product, Baxi. Baxi connects over 400,000 agents nationwide, offering essential financial services such as bill payments, airtime and data purchases, funds transfers, cash-in and cash-out transactions, and more, driving financial inclusion and providing seamless access to digital financial services for millions.

 


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