Towards the end of 2022, Nigeria’s Central Bank announced it would be redesigning the country’s currency notes. A short time frame to deposit old notes and a consequent insufficient supply of new notes created a cash crunch that has been well documented and criticised.
The scarcity meant businesses of all sizes had to adapt, including friendly neighbourhood ones run by owners who had withstood cashless payments for years or simply had no real need for it. Suddenly, people were buying everyday goods from local shops and making payments using their phones or ATM cards. Government data reported a year-on-year increase in mobile transfers of 230.6% in January 2023, while the Nigeria Interbank Settlement System (NIBSS) also reported a 118.2% increase in the value of transactions. Owners adapted because their businesses depended on it. Those who had already embraced digital systems and tools prior to all this were top-of-mind for customers who were careful about how they spent whatever physical cash…
