A recent survey conducted by journalists in 2025 found that 71% of respondents in Nigeria prefer cash over digital payments, while 19% use digital payments occasionally but still have concerns, and only 10% operate fully cashless transactions. This trend is attributed to recurring digital payment fraud and network failures, which are driving traders back to cash and undermining the government's push for a cashless economy. Many traders have reported falling victim to fake transactions, with 52% of 330 surveyed traders stating they had been victims of fake transactions at least once.
Aliyu Balqees, a 34-year-old shoe trader from Ilorin's Gegele Market, Kwara State, shared her experience of being scammed out of ₦9,000. A customer purchased three pairs of shoes and presented a receipt confirming a successful transfer, but the money never arrived. This incident left Balqees with significant financial losses and eroded her trust in digital payments. She now requires cash payments from customers, reflecting a growing trend among traders who have lost faith in digital transactions.
Rahannah Musa, a vendor in Sokoto State's Wamako Local Government Area, also expressed concerns about digital payment fraud. She initially saw an increase in sales after adopting transfer payments in 2023 but faced issues with network instability and fake transfers. Musa emphasized that delayed or missing bank notifications create significant friction for consumers and business owners, often leading to transaction disputes and distrust.
The crisis worsened in January 2025 when the Nigerian Communications Commission (NCC) authorized telecom operators to disconnect Unstructured Supplementary Service Data (USSD) access for nine banks over a ₦200 billion accumulated debt. This suspension left millions of customers unable to conduct USSD banking or receive transaction alerts, further exacerbating the notification bottleneck. As a result, many traders have stopped accepting bank transfers due to multiple bad incidents.
Salamatu Bala, a Kunu da Kosai vendor in Sokoto, shared her experience of losing ₦8,000 daily to fake transfers. Despite feeling she has no choice but to continue accepting digital payments to stay in business, she expressed frustration with deceitful customers. Salamatu recalled a day a customer walked away without paying for ₦1,100 worth of kunu, and she was left with significant financial losses.
Nigeria's digital payment ecosystem has expanded dramatically since the introduction of the 2023 cashless policy. Data from the Nigeria Inter-Bank Settlement System (NIBSS) shows that instant digital payments surged to ₦1.07 quadrillion in 2024, up from ₦600.36 trillion in 2023. However, this growth has also created new vulnerabilities, with the Central Bank of Nigeria (CBN) reporting that banks and their customers lost ₦134.48 billion to financial fraud between 2020 and 2025.
The CBN's Nigeria Payments System Vision 2028 report highlights the massive scale of cybercrime tracking the nation's digital payment expansion. Total attempted fraud during the period reached ₦187.79 billion, underscoring the need for regulators and financial institutions to strengthen joint oversight. Meanwhile, online platforms like Slipcraft, which facilitate scammers in faking transfers and generating fraudulent receipts, continue to pose a significant threat to Nigeria's digital financial ecosystem.
Key points
- 52% of surveyed traders reported falling victim to fake transactions at least once.
- Nigeria's digital payment ecosystem has expanded dramatically since the introduction of the 2023 cashless policy.
- The CBN reported that banks and their customers lost ₦134.48 billion to financial fraud between 2020 and 2025.
