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How can Nigeria build on the payment evolution brought about by the Naira shortage
By Mxolisi Msutwana – Chief Operating Officer at Baxi
All around the world, governments are trying to encourage cashless payments. Their reasons for doing so are multiple, including expanded financial inclusion and transparency, wanting to formalise the informal economy, and to drive economic growth and innovation. Nigeria is no exception.
By the end of 2022, the move towards a cashless policy as a means to eradicate cash was high on the government’s agenda in Nigeria. In early 2023, a bid by the Central Bank of Nigeria (CBN) to introduce new banknotes and lower cash withdrawal amounts led to a serious shortage of cash .
Unfortunately, there were not enough new notes in circulation to serve the needs of a country that’s historically been as heavily cash-dependent as Nigeria. While the initiative itself is a step in the right direction, there’s no denying that it caused issues.
The economic effects were far from positive. According to S&P, amidst widespread protests, many Nigerians were left scrabbling for ways to pay for day-to-day goods and services. As a result, many people who’d never previously used digital payment services had little choice but to adopt them. Fintechs in particular stepped up to the plate, helping Nigerians meet a fundamental need at a time when their lives had been massively disrupted. A report from Nigeria’s Inter-Bank Settlement System (NIBSS) found that there was a 125% increase in mobile payments during January compared with the same period in the previous year. Additionally, Bloomberg reports, the value of mobile-money transactions has jumped by a quarter to 2.5 trillion naira (US$5.4 billion).
As the shortages abate, it will be crucial that digital payment providers do not let the resulting move to digital payments go to waste. In a country with a long history of relying on cash as the primary means of payment as Nigeria, they will have to work hard to retain the customers they’ve gained in recent months and position themselves for continued accelerated growth.
How digital payment providers evolved
Before looking at how digital payment providers can do so, it’s worth taking a deeper look at how they responded to the situation. That the crisis represented a particularly big opportunity for digital payment providers that allow people to make transactions with their mobile phones is to be expected. After all, as Bloomberg points out, just under 40% of Nigerians have access to bank accounts, compared with mobile-phone penetration of 117% in the country, giving them the opportunity to expand rapidly. Given the comparatively low levels of mobile money use prior to the cash shortages, it should be clear just how much potential for growth there was (and still is).
Of course, those operators still had to work hard to ensure that they were able to properly service the growing pool of customers looking to make and receive digital payments. MTN Nigeria, for example, is planning to deploy 224 000 agents to boost the adoption of mobile wallet use.
At Baxi, meanwhile, we onboarded record numbers of agents, ensuring that people were able to easily send and receive money. We also supported merchants in providing solutions for payment collections during that period by deploying additional point-of-sale (POS) terminals, allowing customers to pay via card and transfers, and allowing merchants to generate account numbers for payment collections.
Of course, not everything went according to plan for every digital payment provider. As a recent column in TechCabal pointed out, many Nigerians complained about the high failure rate in digital transactions.
Cash will always be important
Even in the face of such growth, it’s important to remember how dominant cash has historically been in Nigeria. Despite cashless transactions rising 42% in 2022, cash-based payments still accounted for 63% of all POS transactions in the same year, according to the FIS Worldpay Global Payments Report 2022. That’s significantly higher than the global average of 17.9%. It also puts Nigeria well ahead of the average for the Middle East and Africa region, where cash accounts for 44% of POS payments.
The reasons for the dominance of cash in Nigeria are deep-seated too. They range from a lack of access to bank accounts (just 39% of Nigerians aged 15 and older have a formal bank account) to trust issues with the formal economy. An extensive informal economy and infrastructure challenges also play significant roles while the power of force of habit can’t be ignored either.
In other words, digital payment and mobile money providers cannot simply assume that the boon they’ve experienced as a result of the cash shortage will continue unabated. They also can’t assume that cash will be displaced. It will continue to play a significant role in Nigerian society for a long time to come.
Instead, they should focus on using the situation to ensure that Nigerians and merchants alike understand the very real advantages that digital payments and mobile money have in specific situations.
Security, convenience, and increased access
When it comes to consumers, for instance, payment providers need to highlight that the day-to-day transactions that they enabled during the cash shortage were just the start of what they can offer.
Of course, it’s important to keep emphasising that digital payments offer consumers better security and convenience, especially when it comes to large transactions.
But it’s also important to highlight the additional benefits that digital payments offer. Thanks to advanced integrations, for example, customers can access audio and video streaming services without needing a formal bank account. In many cases, the promise of access to something you didn’t previously have access to is a much more powerful incentive than being able to complete existing tasks more conveniently.
For merchants, meanwhile, security is also a benefit that can continue to be emphasised. For small businesses especially, using electronic channels makes tracking your cash-generating activities easier than ever.
Here again though, there are other significant benefits that should be emphasised, including the ability to automate takings. The digital records made available by having digital payment offerings as an option can also ease the path towards formalisation for small businesses. That, in turn, makes it easier to access things like growth financing.
An opportunity not to be missed
Ultimately, there’s never been a better time for digital payment providers to press home what they can offer to both consumers and merchants. But they must make the most of that opportunity. Their best hope for doing so isn’t to degenerate the role of cash but to emphasise the very real opportunities they can help unlock.
Bright Echefu, chief executive officer, Telecom Satellites Limited (TStv), and three co‑defendants appeared before the Federal High Court in Abuja yesterday on an amended twelve‑count indictment brought by the Economic and Financial Crimes Commission (EFCC). The charges allege money laundering, tax evasion, and investment fraud involving approximately ₦1 billion and $1.3 million.
Bright Echefu, chief executive officer, TStv
In addition to Echefu, the defendants are TStv Executive Director, Felix Igboanuga, Telecom Satellites Limited itself, and Briechberg Investment Ltd.
According to the April 5, 2025, amended charge sheet the EFCC accuses the quartet of defrauding Mr. Tanimu Turaki, Managing Director of Kalsiyam Global and former Minister of Special Duties, alongside BYI General Limited, out of a combined investment of ₦1 billion and $1.3 million. The commission has also included a ₦66 million alleged tax default.
The revised indictment lists:
Count 2: ₦33,909,542.47 in unremitted Company Income Tax
Count 3: ₦13,519,382.00 in unremitted VAT
Count 4: ₦19,488,860.00 in unremitted PAYE
Counts 5–12: Various fraud‑related transactions, including ₦380 million from Kalsiyam Farm, ₦400 million from BYI General Ltd and $1.35 million in loans secured under false pretences.
All defendants pleaded not guilty once again. At the hearing before Justice Mohammed Umar, Echefu’s lead counsel, Senior Advocate Eyitayo Fatogun, informed the court of ongoing settlement discussions with the complainants.
“There are moves to settle this matter and there was a meeting on Saturday between myself and the Nominal Complainant as it is about investment,” Fatogun stated.
“The Defendants have paid some money and I was thinking that the matter be adjourned for report of settlement.”
EFCC counsel A.S. Tomwell confirmed receipt of those payments but emphasized the necessity of entering a plea before considering any adjournment. The court thus ordered the formal reading of the charges and adjourned the trial to October 15, 2025.
The government of Ghana has ordered MultiChoice Ghana to reduce DSTV subscription costs by 30%, noting the significant appreciation of local currency and growing dissatisfaction with current rates.
This comes as Nigeria Data Protection Commission (NDPC) has fined MultiChoice Nigeria ₦766,242,500 for breaching the Nigeria Data Protection Act (NDPA).
According to Mr Babatunde Bamigboye, head Legal, Enforcement & Regulations, NDPC, the investigation, which commenced in the second quarter of 2024, was triggered by suspected breach of privacy rights of Multichoice subscribers and illegal cross-border transfer of personal data of Nigerians.
MultiChoice, which operates across Africa, continues to lose revenue and subscribers.
Ghana’s minister of communication, digital technology, and innovation, Samuel Nartey George, made the call last week during a meeting with a DSTV team led by Dr. Keabetswe Modimoeng, group executive for regulatory and corporate affairs.
According to a ministry statement, George said the government’s responsibility is to respond to Ghanaians’ concerns over high DSTV pricing and outdated content offers.
The Minister pointed out that despite a 30% increase in the cedi’s value over the past five months; DSTV prices have not reflected the positive economic trend.
The statement went on to say the minister is therefore calling for a 30% price reduction to match the cedi’s appreciation and to pass on economic benefits to consumers.
According to the statement, while MultiChoice has implemented promotional packages, people prefer a direct price reduction over temporary discounts.
George said feedback from public engagements revealed that many users are dissatisfied with DSTV’s content, describing it as outdated save for Premier League football. They also believe that the current cost is not justified.
”To address the concerns, he said MultiChoice Ghana has until July 21 to formally respond to the government’s request. The Minister expects a concrete proposal by this date, allowing time for further engagement before the end of July,” the statement said.
In response, Dr. Modimoeng acknowledged the government’s concerns and expressed gratitude for the opportunity to dialogue.
The MultiChoice team reacted positively to the minister’s request and committed to provide input by July 21st. They emphasised the need of balancing public interest and business sustainability.
This is the continent’s latest pricing conundrum for the pan-African pay-TV business, following fee disputes with Nigerian and Malawian authorities.
In Ghana, the demand for price cuts comes as MultiChoice is under pressure, having lost revenue and subscribers in the financial year that ended March 31, 2025. Last month, the company announced its financial year-end results.
In a statement to shareholders last month on the Stock Exchange News Service, the company said the past two financial years have been a period of significant financial disruption for economies, corporates and consumers across Sub-Saharan Africa due to challenging macro-economic factors.
Combined with the impact of structural industry changes in video entertainment, such as the rise of piracy, streaming services and social media, this has materially affected the overall performance of the MultiChoice Group, it noted.
Over this period, MultiChoice said the group lost 2.8 million active linear subscribers and had to absorb a R10.2 billion negative impact on its top line due to local currency depreciation against the US dollar.
For the year, the company reveals that linear subscribers were down 1.2 million, or 8% year-on-year, to 14.5 million active subscribers, with the loss evenly split between South African (600 000) and rest of Africa (600 000).
Nigeria Data Protection Commission (NDPC) has fined MultiChoice Nigeria ₦766,242,500 for breaching the Nigeria Data Protection Act (NDPA).
NDPC is a public institution that processes data in furtherance of its mandate as Nigeria’s data protection authority and relies on recognised lawful bases for data processing, such as consent, legal obligation, and contract.
The fine was contained in a statement signed by Mr Babatunde Bamigboye, head Legal, Enforcement & Regulations, NDPC.
According to him, the investigation, which commenced in the second quarter of 2024, was triggered by suspected breach of privacy rights of Multichoice subscribers and illegal cross-border transfer of personal data of Nigerians.
“The NDPC found, among others, that Multichoice violated the data privacy rights of subscribers and their friends who are not necessarily subscribers.
The Commission also found that Multichoice carries out illegal cross-border transfer of personal data relating to data subjects in Nigeria.
The depth of data processing by Multichoice is patently intrusive, unfair, unnecessary, and disproportionate.
This is a grave affront to fundamental right to privacy as enshrined in Section 37 of the 1999 Constitution of the Federal Republic of Nigeria.
In line with its standard remediation procedure, the Commission directed Multichoice to carry out appropriate remedial measures.
However, the Commission found the measures undertaken by Multichoice in this regard unsatisfactory.
For want of cooperation, the Commission has directed Multichoice to pay ₦766,242,500 for violating the Nigerian Data Protection Act.
“Nigeria is entitled to protect her citizens and data sovereignty under both international and extant municipal laws, as these have far-reaching implication for rule of law, national security, and economic growth.” the statement said.
Babatunde also revealed that, Vincent Olatunji, national Commissioner, NDPC, has directed that all outlets through which Multichoice is collecting personal data of Nigerian citizens should be investigated for non-compliance.
He added that any outlet that processes personal data in violation of the NDP Act is liable to penalty under the Act.
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