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Four Technologies that can Drive Nigeria’s Cashless Economy

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Victor Irechukwu,
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By Victor Irechukwu, Head of Engineering, OnePipe

Waving your hand to pay after shopping at a store, or simply placing your mobile phone on the checkout counter could seem strange – at least to a number of people in Nigeria. But it is possible and in fact, already standard practice in some countries.

 

Victor Irechukwu,

Victor Irechukwu,

This, and other cashless methods can also be possible in Nigeria if the right technologies are adopted. After all, some people already use tollgates where courtesy of something called e-tag, they are let through without waiting to pay every time. It is a form of cashless technology too.

Global cashless payment volumes are set to increase by more than 80% from 2020 to 2025, from about 1tn transactions to almost 1.9tn, and to almost triple by 2030, according to analysis by PwC. Asia-Pacific will grow fastest, with cashless transaction volume increasing by 109% from 2020 to 2025 and then by 76% from 2025 to 2030, followed by Africa (78%, 64%) and Europe (64%, 39%). Latin America comes next (52%, 48%), and the US and Canada will have the least rapid growth (43%, 35%).

Here are some technologies Nigeria should be looking into so as to strengthen the move towards being cashless.

QR code

Have you ever come across a sign that says ‘scan to pay’ (with a pattern of black squares) after shopping at a store? Any business or individual that receives payment can provide this option, which is derived from Quick Response codes, which are machine-readable barcodes that store information.

In 2020, Ghana became the first African country to introduce a universal QR code. In South Africa, the Payments Association of South Africa (PASA) has identified a need to streamline the experience of both payer and payee and is in the process of standardising QR codes across the sector.

In 2021, the Nigeria Inter-Bank Settlement System Plc (NIBSS) launched the New Quick Response (NQR) payment solution code, which it describes as “an innovative payment platform implemented on behalf of all financial service providers.” The New Quick Response code solution offers a robust platform that delivers instant value for P2B and P2P transactions by simply scanning to pay.

Generally, making QR codes more widely used will create another easier way for people to transact without cash, and cheaper for merchants to receive their money.

Mobile money

Nigeria still hasn’t fully hacked Mobile Money, despite the successes recorded in other countries across Africa. In 2021, CBN data shows Nigeria recorded 1.2 billion mobile money transactions with a value of N15 trillion (about $34 billion using official rates).

However, in Ghana, with a fraction of Nigeria’s population, the volume of transactions was 4.25 billion in 2021, with a value of GH¢ 978.32 billion (about $75 billion).

Let’s not even compare with Kenya or other African countries blazing the trail in mobile money. It is clear that this technology remains largely underexplored in Nigeria. With the country’s large rural population and low internet penetration, mobile money offers those who would otherwise be disadvantaged a way to send and receive money electronically and with less sophistication required.

Digital wallets

iPhone users should be familiar with Apple Pay and their android contemporaries, Google Pay. But, whenever you are sceptical of inputting your card details on a website, has it occurred to you to use that Apple or Google pay function (which you already trust) on your device?

There are other options which PwC described in a report as ‘super-apps’ such as WeChat Pay and Alipay in China, and in different countries, local options abound with different names. While many people already use these platforms it is still not a widespread means of payment in Nigeria.

These digital wallets allow consumers to load and store payment methods and access funding sources, such as cards or accounts, on their mobile devices. The use of digital wallet–based transactions grew globally by 7% in 2020, according to a report by FIS, a financial services technology group, which predicts that digital wallets will account for more than half of all e-commerce payments worldwide by 2024, as consumers shift from card-based to account- and QR code–based transactions.

Nothing stops the growing fintech industry in Nigeria from introducing similar platforms to take advantage of the immense opportunities.

Contactless payments

This has been referenced a few times earlier and it is one innovative way to not only get more people to go cashless, but also in a way that would excite them.

Imagine that you have finished shopping at a supermarket and the cashier tells you to simply hold your phone near theirs and with the tap of a button, payment is done.

This movement of money from you as a customer to the merchant happens through near-field communication (NFC) technology, a function you may have seen on your phone, never utilised and probably been curious as to what it does.

A Tappit article further explains that instead of swiping or inserting your bank card into a reader and typing a PIN, you simply ‘tap-and-go’ or ‘wave and pay’. To make a payment, you place your bank card or contactless-enabled mobile phone near the reader.

These technologies, in addition to other existing cashless payment methods like the regular bank transfers, card payments, can help drive Nigeria’s cashless economy further.


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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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Nigeria Hits 1 Terabit Internet Traffic Milestone

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IXPN, Nigeria’s leading Internet Exchange Point, is proud to announce a landmark achievement: crossing 1 Terabit per second (1Tbps) in aggregate peak domestic internet traffic for the first time.

Nigeria Hits 1 Terabit Internet Traffic Milestone

This milestone signifies a major leap forward in developing Nigeria’s internet infrastructure and underscores the critical role of local internet infrastructure in driving economic growth, innovation, and connectivity for millions of Nigerians.

“This milestone is more than just a number. It’s a symbol of Nigeria’s digital maturity and our united strides towards becoming a tech-driven nation. By keeping local internet traffic within Nigeria, we reduce costs, improve speeds, and ensure our digital economy thrives with homegrown infrastructure.” said Muhammed Rudman the CEO of IXPN.

“Achieving 1 Tbps is a significant victory for Nigeria’s ICT ecosystem, a breakthrough for domestic internet traffic. It serves as a catalyst, enabling millions of Nigerians to enjoy faster, more affordable, and resilient internet connectivity.”

1 Terabit per second is a game-changer for Africa’s most populous country. To put it in perspective:

  • Mega Video Calls: A speed of 1 Tbps can support over 1 million concurrent Zoom calls, allowing students, entrepreneurs, and professionals to connect and drive Nigeria’s digital revolution.
  • Streaming Frenzy: With 1 Tbps, more than 200,000 people can stream HD Nollywood films or movies on Netflix simultaneously without any buffering or interruptions.
  • Data Superpower: This speed enables the transfer of the entire contents of 50,000 smartphones—including photos, apps, and videos—in just one second.

For Nigeria, hitting this milestone means reducing reliance on international bandwidth, decreasing latency for local services, and strengthening our position as Africa’s digital heartbeat. This milestone is a testament to the power of collaboration, innovation, and the relentless pursuit of a faster, more connected Nigeria.

This accomplishment goes beyond technical advancements; it has significant economic implications. By encouraging local traffic exchange, IXPN reduces dependency on international bandwidth, leading to:

  • Significant Cost Savings: By utilizing local data exchange, Nigerian businesses can save millions of dollars annually on international bandwidth fees.
  • Enhanced Speed and Connectivity: With reduced latency, users experience smoother streaming, gaming, and real-time services, enhancing their overall online experience.
  • Increased Resilience: Strengthening Nigeria’s internet infrastructure protects against global disruptions, ensuring consistent access to vital services such as healthcare and education.
  • Improved Efficiency: Optimizes digital services like fintech, edtech, e-commerce, and e-health, propelling innovation and growth in these sectors.

Surveys conducted among IXPN members over the years have shown a growing percentage of local internet traffic in Nigeria. A recent report indicates that some connected members can localize or domesticate up to 70% of their internet traffic through IXPN.

“As more content providers, ISPs, banks, and public institutions localize their traffic through the IXP, end users benefit directly,” added Raphael Iloka (Marketing Manager). “We’re not just routing data — we’re building the foundation for Nigeria’s digital economy.”

The 1 Tbps peak highlights the remarkable impact of collaboration among all stakeholders. This milestone is a significant achievement not only for IXPN, but for the entire ICT ecosystem.  IXPN deeply appreciates the vital contributions of all stakeholders involved.

To our Members and Partners: Your trust and participation have been essential to our growth. Together, we have established a hub where networks can interconnect, innovate, and thrive.

To the Government and Regulators: We express our sincere appreciation to the Nigerian Communications Commission (NCC) for all its support over the years and its vision of a digitally inclusive Nigeria.

To our Team: We extend our gratitude to our engineers, network administrators, and all other staff who work tirelessly behind the scenes to push boundaries.

To the Global Community: We are grateful to partner organizations like the Internet Society (ISOC). Your support and advocacy in domestic peering empower us all.

Reaching 1 Tbps is just the beginning. As data demands skyrocket with AI, IoT, 5G, and immersive technologies, IXPN is committed to staying ahead of the curve. Here’s how:

  • Scaling Infrastructure: We are investing in advanced hardware and software to support multi-terabit capacities.
  • Enhancing Resilience: We are strengthening our network to ensure uptime, security, and adaptability in an ever-changing digital landscape.
  • Empowering Underserved Communities: We aim to expand our reach to rural areas, bridging the digital divide, and supporting agritech, edtech, and telehealth.
  • Strengthening Africa’s Digital Sovereignty: Partnering with regional IXPs to keep Africa’s data on the continent.

 


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TD Africa’s TecHERdemy Empowers 400 Women to Lead in Tech

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On April 17, 2025, the atmosphere at Yudala Heights was electric with pride, hope, and inspiration as TD Africa, the leading tech distribution company in Sub-Saharan Africa, celebrated the graduation of 400 young Nigerian women from its flagship TecHERdemy program.

Over the past six months, these incredible women immersed themselves in rigorous, hands-on training in Cybersecurity, Data Science, Artificial Intelligence, and Software Development. They are now confidently stepping into the tech world, ready to make their mark.

The event brought together top voices in the industry, including Dr. Leo Stan Ekeh, Chairman of the Zinox Group, who commended the graduates for their resilience and brilliance. In his keynote speech, he shared a hopeful vision for Africa’s future, calling these young women “the pioneers of a new, inclusive era of tech leadership on the continent.”

Mrs. Chioma Ekeh, CEO of TD Africa, also delivered a heartfelt message, urging the graduates to let their values guide them as they navigate their careers.

“Hold tightly to your values. Let integrity guide your work, let innovation fuel your dreams, and let your impact speak louder than your résumé,” she encouraged.

The ceremony was filled with emotion as graduates shared their personal stories of transformation. One of them, Yetunde Kayode, now a certified data scientist, summed it up beautifully: “This program changed my life. I’m walking away empowered, skilled, and deeply grateful to Mrs. Ekeh and the TecHERdemy team for believing in us.”

Fifteen exceptional participants were also honoured for their outstanding performance and leadership during the program, reminding everyone that excellence comes in many forms.

TecHERdemy, which launched in November 2024, was built with a simple but powerful mission: to equip young Nigerian women with globally relevant digital skills and open doors to a tech career. But what happened over those six months went beyond just skills; it sparked a movement.

This graduation wasn’t just the end of a program. It was the beginning of a brighter, more inclusive future for tech in Africa.


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MTN Nigeria Faces Class Action Lawsuit over Alleged Data Mismanagement

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Nigerians have launched a class action lawsuit against MTN Nigeria, accusing the telecom giant of unexplained data usage and rapid depletion.

The controversy erupted after a viral post on X (formerly Twitter) showcased an individual’s interest in taking legal action, along with evidence of unusual data activity.

This post rallied many others to join the cause, sharing their own grievances and pledging support.

A Google Form was circulated to collect names of affected users, highlighting issues such as false data top-ups and excessive costs without value.

Comparisons to data usage and pricing in other countries only fueled the frustration, and numerous Nigerians expressed their determination to pursue justice.

Social media buzz amplified the issue, with mixed reactions ranging from encouragement to skepticism about the lawsuit’s potential impact.

Meanwhile, MTN Nigeria has not yet released an official response to these allegations.


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