Blockchain in Nigeria: Zone Hits ₦1 Trillion Transactions

The Rise of Blockchain Transactions in Nigeria

In a groundbreaking development, Zone, a Nigerian payments infrastructure company, has successfully processed over ₦1 trillion in transactions via its blockchain network within just 26 months. This achievement highlights not only the technological advances in Nigeria's financial ecosystem but also illustrates the growing acceptance of digital financial solutions among banks. As reported by Zone's CEO, Obi Emetarom, these transactions were primarily conducted through automated teller machines (ATMs) and mark an impressive milestone in the adoption of blockchain technology within Nigeria's banking sector.

Shifting Towards a Cashless Economy

Interestingly, despite the rapid rise in blockchain transactions, the overall ATM usage in Nigeria has seen a decline, falling from ₦32.65 trillion in 2022 to ₦28.2 trillion in 2023. This decline could be due to the broader consumer shift toward Point-of-Sale (POS) terminals and online payments, as Nigerians increasingly embrace digital transactions. According to recent data, POS transactions soared to ₦1.01 trillion by July 2024, further emphasizing the trend towards cashlessness and highlighting the need for innovation in payment solutions.

Embracing the Future: Opportunities and Compliance

The challenge now is scaling this technology to more ATMs and POS systems. While the potential for wide adoption exists, financial institutions remain cautious due to fears surrounding compliance and regulation. Emetarom notes that Zone's blockchain technology was designed with compliance in mind, aiming to alleviate fears of regulatory sanctions while providing efficient processing. This dual approach is crucial in building confidence among banks and enabling a smoother transition to blockchain integration.

Building Financial Inclusivity

The growing adoption of POS systems is reshaping Nigeria's economic landscape, particularly within the informal sector, where businesses are transitioning from cash-based operations to electronic payments. This transformation not only enhances transaction efficiency but also directly promotes financial inclusion. With over 4 million POS terminals deployed, many small businesses now have access to digital financial services, fostering growth and opportunity for communities previously underserved by traditional banking systems.

Conclusion: The Future of Payments in Nigeria

The success of Zone's blockchain transactions symbolizes the future of financial technology in Nigeria. As more banks begin to adopt these innovations, the movement toward a fully digital economy accelerates. With a commitment to compliance and the advent of automation in Nigeria's payment infrastructure, the nation stands at the forefront of fintech evolution in Africa. As this landscape shifts, entrepreneurs and investors should remain vigilant, adapting to the emerging trends in digital payments and blockchain technology.