Despite a ₦647 trillion payment boom, Nigeria’s informal sector stays cash-first
Despite years of fintech expansion, internet banking growth, and mobile banking, Nigeria’s informal economy still operates primarily on cash. Only one in four informal businesses reports that digital payments account for at least 10% of their total revenue, according to Moniepoint’s 2025 Informal Economy Report. The figure reveals the reality of the country’s payment boom, where internet and mobile transfers surged by 34.06% to ₦647.05 trillion ($439.86 billion) according to new Central Bank of Nigeria data. However, for millions of small business owners, from roadside vendors to market traders, cash is still king and trustworthy. Micro, Small, and Medium-sized Enterprises (MSMEs) are essential to Nigeria’s economy, contributing around 65% of GDP and providing more than 80% of all jobs, but many of these businesses still see digital payments as an option, not a lifeline. “For most informal businesses, digital payments are an option, and typically not the full story,” the report notes. “1 in 4 of them say that digital payments account for less than 10% of their total business revenue.” The payment reality: Cash is double the problem of cards, but still king Digital transfers are a significant part of the informal economy, but cash remains the clear preferred payment method. This is the breakdown of what powers daily transactions at the grassroots level. How informal businesses get paid: Cash vs. transfers CASH 51% TRANSFERS 39% CARDS 9% Transfers are growing, but cash accounts for more than half of all transactions. The real digital dependency: The “1 in 4” Rule 1 in 4 3 in 4 Digital-Enabled (≥10% Revenue) Cash-Reliant (<10% Revenue) Data source: Moniepoint 2025 Informal Economy Report Transfers are growing Transfers are becoming more common, accounting for 39% of payments for businesses. Although it pales in comparison with cash, which accounts for 51%. Cards accounted for 9% because informal businesses still do not own POS terminals or avoid them because of maintenance costs and transaction delays. While cash still dominates, businesses are increasingly depending on transfers as speed and ease improve, and card payments continue to lag. “Informal businesses are less capable of receiving digital payments via cards, leading to a heavier reliance on transfers,” Moniepoint said. All hope is not lost, as 16% of these businesses said digital transactions accounted for over 50% of their business revenue. While digital payments have immense benefits for businesses, especially in the informal economy, “the data shows that access to digital payments remains constrained for most of them.” This means that, even with the rise of mobile money agents and fintech apps, most micro-enterprises still operate outside the cashless economy. Access and affordability remain key constraints. For instance, broadband connectivity is still below 50% in Nigeria, and tools built for digital commerce need a stable internet. “While digitisation has improved payment flows, poor digital infrastructure and low financial literacy remain stumbling blocks,” said Chinyere Almona, Director-General of the Lagos Chamber of Commerce and Industry.
Read MoreScam and walk free? Blockchain never forgets, you could be caught 15 years later
In Africa, financial systems are changing fast. Systems built on blockchain technology (decentralised finance), like stablecoins and crypto tokens, give people new ways to send and receive money, trade across borders, and access financial services without going through banks. At Moonshot by TechCabal on Thursday, October 16, panellists on a session on payments, and the promise of decentralised finance in Africa agreed that DeFi could help solve long-standing challenges such as fraud, high transaction fees, limited banking access, and slow cross-border payments. “A lot of Africans are locked out of global finance,” said David Salami, co-founder and lead engineer at Polytope Labs. “But through blockchains, because of the permissionless nature of these systems, people can bypass those frictions and move money freely.” According to Chainalysis, cryptocurrency transactions in sub-Saharan Africa hit $205 billion between July 2024 and June 2025. Nigeria led the region with $92 billion in crypto activity during that period. Around 22 million Nigerians, about 10% of the population, now hold cryptocurrencies, up from just 0.4% ten years ago. The growth of crypto has also come with rising fraud. Crypto-related crimes in Africa jumped 27% last year, with Nigeria recording over 9,500 cases in 2024. Panelists said the idea that crypto crimes go unpunished is a myth. Blockchain transactions leave permanent records, which means stolen funds can often be traced, even years later. “One of the biggest misconceptions is that you can scam with cryptocurrencies and get away with it,” said Emmanuel Peter, Head of Roqqu Academy. “But sorry to disappoint, most on-chain scams, even after 5-15 years, are eventually traced and recovered.” Panelists also discussed the role of regulators and law enforcement in improving compliance and protecting users. They noted that many exchanges now work closely with governments to track stolen assets and create safer digital systems. They said collaboration between the public and private sectors will be key for broader crypto adoption in Africa. “You will be surprised how many enterprises and government agencies are willing to partner to drive education and regulatory awareness. Once clear safeguards are in place, people will feel more confident using these new financial tools,” said Adaobi Orajilaku, founder and CEO of Atsur. As blockchain technology matures, panelists said, in the coming few years, digital currencies could do what legacy banks could not: build an open, safe, inclusive financial system for Africans.
Read MoreMastercard wants to power Africa’s cross-border future
The story of the growth of payment solutions in Africa is increasingly being tied to how fast money can move across borders. Despite a digital boom, just 15% of Africa’s trade happens within the continent compared to over 60% in Europe and 50% in Asia. That gap in cross-border payments, Tolulope Adeyinka, Mastercard’s director of Business, Development, Enablers & Crypto for North & West Africa, argued in his keynote, is more about fragmentation, including currency barriers and regulatory complexity. Adeyinka’s argument in his address titled “Driving Financial Inclusion at Scale” was that these barriers can be broken by designing a more inclusive ecosystem. “Inclusion and innovation, is not just about where Africa is going, but how we get there together,” Adeyinka said, emphasising that inclusion is what Africa’s payments rails should try to achieve. According to Mastercard’s joint research with Caribou Digital and Genesis Analytics, Africa’s digital payments economy could reach $1.5 trillion by 2030, driven by fintech innovation and Micro, Small, and Medium Enterprises (MSME) participation. But to reach that milestone, the continent needs seamless and secure cross-border payment systems that work for everyone, including small traders and global platforms. That’s where Mastercard’s ecosystem approach comes in. The company’s MasterCard Cross-Border Services now connects more than 180 countries, support over 150 currencies, and reach nearly 10 million endpoints including bank accounts, cards, and mobile wallets. Partnerships with banks like Access Bank and Fidelity Bank in Nigeria, and regional collaborations with Ira and MTN Fintech, are expanding remittance flows and enabling millions to send and receive money instantly. Mastercard’s inclusion strategy also extends to small businesses and the unbanked. Its Tap on Phone solution turns any smartphone into a payment terminal, and partnerships with mobile operators allow digital wallets to issue virtual cards, which let millions of users transact online without traditional bank accounts. “We’re expanding remittance flows and enabling families, traders and entrepreneurs to send and receive money seamlessly with certainty and trust, because when people can move money easily, businesses grow, trade expands, and opportunity multiplies,” Adeyinka said. Mastercard is investing in AI-driven financial inclusion through its AI in Africa 2025 white paper and The MADE Alliance initiative with the African Development Bank that aims to connect 100 million people and businesses to the digital economy over the next decade. “Africa’s momentum is real, it’s rising, and it’s ours to shape,” Adeyinka said. “To reach others, we must build trust. To drive inclusion, we must design for everyone. And to unlock our full potential, we must power a payment ecosystem that works for all.”
Read MoreHow Flutterwave is powering the future of cross-border payments in Africa
Africa’s digital economy is worth more than $180 billion, yet moving money across the continent remains one of its biggest friction points. Payments across the continent is fragmented as each country has its own currencies, licensing requirements, mobile money systems, and regulators. Flutterwave’s playbook on cross-border payments, presented at Moonshot by Flutterwave’s Assistant Vice President, Global Expansion & Payments Partnership, Gabriel Ologunwa, explored how this fragmentation creates both challenges and opportunities. The company pointed to a $1 trillion untapped market for electronic payments and $96.4 billion in annual remittances as proof of the scale waiting to be unlocked only if payment systems within the continent could align and work together. This presents a challenge for fintechs who intend to expand across the continent. To navigate Africa’s diverse payment rails, these startups must integrate separately with banks, and card networks in each market, manage volatile foreign exchange rates and meet different licensing standards. Flutterwave’s model collapses these barriers through a unified application programming interface (API) that connects businesses to local payment infrastructure across Africa. The company now holds regulatory coverage in 34 African countries and licenses in the United States, United Kingdom, European Union, Canada, and India, allowing it to operate seamlessly across jurisdictions. These licenses include Nigeria’s Switching & Processing License, South Africa’s Third-Party Payment Processor License, Egypt’s Payment Service Provider, the Payment System License in Tanzania and Zambia, among others. Its impact shows up in how global brands now scale in Africa. European fintech Norafirst used Flutterwave’s API to access 20+ markets, growing transactions by 300% in six months. Buy now, pay later firm, FuturePay, integrated local payment options and saw cart completion rise 60%. In the first half of 2025 alone, Flutterwave processed $1 billion for East Asian merchants and grew its virtual accounts volume by 198% year-on-year. Launched in 2016 as a Nigerian and US-based payments company, Flutterwave was valued at $3 billion and had processed over 200 million transactions as at 2022.
Read MoreToo many fundraises, not enough returns: A story of African tech
African startups are raising more money than ever, but few are seeing real returns. That was the unflinching verdict of the Pan-African View of Tech Returns and Exits panel at Moonshot by TechCabal 2025, where Bankole Cardoso, Managing Director of venture studio, Delta40, Sadaharu Saiki, founder of Sunny Side Ventures, and Esohe Igbinoba, a Venture Partner for Vencapital, confronted the structural gaps holding back liquidity across the continent. The conversation revealed that while the continent has hundreds of startups scaling fast, too few reach the liquidity events, like initial public offerings (IPOs), acquisitions, or secondaries, that recycle investor capital and reward founders. “Exits are very, very important for our financial supply chain, because, at the end of the day, it’s not just the startups who have to fundraise. VCs also have to fundraise to make Africa a viable destination in the current financial supply chain,” Saiki said. He shared his own comparative research where he compared the number of exits in Africa to that of other regions. He stated that in 2023, just 30 exits were recorded across Africa’s 54 countries, compared with 83 in Southeast Asia and 178 in Japan. He used this to show how the gap in exit volume across regions underlines why capital remains trapped in African growth-stage startups. Japan and India’s success, he explained, stems from having vibrant public markets and structured IPO systems that allow investors to cash out regularly. Cardoso highlighted that founders who want their startups to be attractive for strategic exits need to start with the basics many overlook: governance and financial discipline. He explains that setting up a formal or even advisory board early builds structure and credibility, while keeping clean records and management accounts from day one ensures transparency when investors or buyers arrive. “Those are the steps that you should really have taken from day one to really understand your business and to help investors coming in to understand your business. So the cliche, things are really governance and financials.” The conversation also explored how deal structures are evolving. While global venture funding has slowed, debt financing is quietly becoming a more common bridge for African startups. Panelists noted that a growing number of startups now combine equity and debt to sustain growth while waiting for better exit opportunities, a reflection of how founders are adapting to limited liquidity. “I think the mix of debt and equity is going to be the next phase, because we have been too focused on equity and some financing phases are better financed by debt,” Saiki adds. The crux of the conversation seemed to be that Africa’s exit problem is about design. Exits must stop being afterthoughts and become embedded in strategy, structure, and capital planning. Only then can founders and investors expect capital to flow in.
Read MoreLiz Gomiz wants Africans to own the digital tools shaping their stories
The director of MansA Maison des Mondes Africains, Elizabeth Liz Gomiz, believes Africa’s future depends on owning the tools that power its storytelling. “Creativity is not enough when the tools, frameworks, and platforms don’t belong to us,” she said at Moonshot by TechCabal on Wednesday, October 15. “The digital world has become the place where culture is made, where stories are written, where symbolic and economic values accumulate. Yet, the infrastructures, platforms, and algorithms that shape these worlds are, for the most part, built elsewhere.” As AI, data, and digital platforms become the new frontiers of cultural power, Africa’s stories risk being filtered through systems that neither know nor recognise its people. Already, platforms like Netflix and Amazon’s Prime are the major vehicles powering African storytelling today. Gomiz wants to change this through MansA, a company that champions projects that invest directly in African creators. One such project, MansA Lab, is an incubator launching in November 2025 to support a dozen projects by entrepreneurs, artists, designers, and other creatives shaping the story of African worlds. The aim is to help Africans reclaim their narratives and build bridges between Africa and Europe, rather than what Gomiz calls “organised dependencies.” “Our goal is simple,” she explained. “To ensure that future AI models recognise our languages, our faces, our rhythms, our mythologies, because the future will not be built on imported datasets. It will be built on our own archives, our stories, and our sensibilities. For this, we need to accelerate the moment, and that requires funding. It’s important to invest in creators as much as in technology.” Gomiz urges investment in storytelling on a national scale or continental scale. The way a country tells its story shapes how the world perceives it, influencing trade, innovation, tourism, and even confidence among its citizens, she argued. “The future of the creative industry will not be designed in Paris,” she said. “It will be built in Lagos, Dakar, Nairobi, Abidjan. The engine of Africa’s digital culture are the creators, technologists, and dreamers. “It is not about connecting artists to platforms alone; it is about giving them mastery over narrative, capital, and tempo. This engine cannot be imported. It must be tuned to our rhythms, our languages, our memories. We don’t need a replacement engine. We need a living, collective, rebellious one, and that engine already exists. It’s called creation.”
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Togo’s Gozem expands into mobile money with new fintech platform
Gozem, a Francophone Africa-focused super app, has launched Gozem Money, a mobile money platform developed in partnership with NSIA Bank Togo, a branch of the banking division of NSIA Group. The service aims to expand access to affordable financial services for everyday users in Togo. “We are proud to offer a solution that combines technology, simplicity, and social impact,” said Jean Sylvestre Nango, Managing Director of Gozem Money Togo. “ Gozem Money reflects our ambition to transform the sector and actively contribute to sustainable financial inclusion.” Gozem’s choice of launching in Togo is strategic. The total value of Togo’s mobile money transactions in Q1 2024 saw a 3% surge to $1.54 billion compared to the previous quarter. The country has a mobile money penetration rate of 39% among its 8 million residents, with over 57% of these individuals actively making digital payments. “With our expertise and nationwide presence, we are driving the country’s digital transformation and supporting the emergence of a more inclusive economy,” Max-Ange Didier Djecketh, Managing Director of NSIA Bank Togo, added. Gozem Money will enable users to top up their wallets, make transfers across operators, and make purchases on compatible platforms, as the solution is fully interoperable with all mobile money operators in Togo. The platform claims its withdrawal fees are five times lower than the standard market rates. Gozem is entering into a sector dominated by mobile money services backed by the country’s telecom operators. TMoney, owned by Yas (formerly Togocom), holds about 60% of the mobile money market, while Moov Africa’s Flooz Wallet holds the remaining 40%. Gozem Money’s entry could spark price competition; yet, winning the scale will depend on Gozem’s agent-network density. Gozem is betting that its below-average pricing scheme will provide an affordable alternative for users. The launch comes almost two years after the startup acquired Moneex, a Beninese startup specializing in electronic payments, for an undisclosed amount. Gozem plans to expand the service to other countries where it already operates, including Benin, Gabon, and Cameroon. Gozem’s mobile app is a culmination of transport, e-commerce, and financial services for consumers, driver-partners, and businesses. Launched in November 2018, the startup claims to have completed over 20 million rides across 16 cities. Mark your calendars! Moonshot by TechCabal is back in Lagos on October 15–16! Meet and learn from Africa’s top founders, creatives & tech leaders for 2 days of keynotes, mixers & future-forward ideas. Get your tickets now: moonshot.techcabal.com
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Vertiv expands footprint in Africa with multi-year Airtel Nxtra data centre deal
Vertiv, a global critical digital infrastructure and continuity solutions provider, has signed a multi-year partnership with Nxtra by Airtel Africa to support the telecom operator’s ambitious plan to build one of the largest data centre networks across the continent. The collaboration begins in Nigeria, marking the first phase of Nxtra’s long-term expansion to provide high-capacity, energy-efficient digital infrastructure across Africa. Under the agreement, Vertiv will supply advanced thermal management systems, uninterruptible power supply (UPS) units with batteries, and comprehensive commissioning and maintenance services. The first project, a 42-megawatt (MW) facility in Nigeria, will be delivered in four phases and is expected to be fully operational by 2028. Vertiv’s Nigerian service team will oversee installation and provide five years of ongoing support, ensuring reliable operations and minimal downtime for the facility. Nxtra’s CEO, Yash Issur, said the company’s investment in large-scale, high-quality data centres is crucial to enabling Africa’s digital transformation. “It was important to partner with a vendor that combines global expertise with a strong local presence,” Issur said. “Vertiv’s track record in Africa, along with its experience supporting Airtel projects in India, gives us confidence in its ability to deliver reliable, scalable infrastructure across our markets.” Karsten Winther, president of Vertiv for Europe, the Middle East, and Africa (EMEA), noted that Airtel and Vertiv have collaborated for nearly three decades. “This next chapter demonstrates the power of combining local African support with international innovation,” he said. The deal positions Vertiv as a key partner in Nxtra’s multi-country rollout plan, which will extend to markets such as Kenya, Uganda, and Tanzania, where Airtel Africa operates. Vertiv’s managing director for Africa, Wojtek Piorko, described the partnership as “an important milestone in strengthening Africa’s digital backbone,” highlighting the continent’s rapidly growing, data-hungry population as a major driver of demand. Nxtra’s expansion comes as Africa experiences a surge in data consumption driven by cloud adoption, fintech growth, and emerging AI workloads. In Nigeria, data usage hit a record high in 2025, with monthly internet traffic reaching 1.1 million terabytes (1,100,000 TB) by July. This surge—driven by cloud services, video streaming, and enterprise digital operations, has spurred major investments in the data centre sector, pushing total national capacity to about 136.7 megawatts. Despite challenges such as rising energy costs and fluctuating internet subscriptions, the market continues to grow rapidly as demand for digital infrastructure intensifies. The planned facilities, including a massive upcoming site in Nairobi expected to surpass the Nigerian project in scale, are designed to meet global standards for sustainability, security, and performance. Mark your calendars! Moonshot by TechCabal is back in Lagos on October 15–16! Meet and learn from Africa’s top founders, creatives & tech leaders for 2 days of keynotes, mixers & future-forward ideas. Get your tickets now: moonshot.techcabal.com
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M-Pesa charges 2025 in Kenya: A simple breakdown
If you live in Kenya, chances are that you use M-Pesa every day, or you are thinking of starting to consider the possibilities of taking advantage of the e-payment app to send money, pay bills, buy airtime, or receive payments. But how much do you really pay for these services in 2025? Let’s break it down in the simplest way possible so you can save more and spend smartly. Sending money on M-Pesa (2025 rates): Sending money is the most used M-Pesa transaction— good thing some transfers are still free, especially for small amounts. Here is how it works: Ksh 1-49: Free Ksh 50-100: Free Ksh 101-500: Ksh 7 Ksh 501-50,00: Ksh 13-108 50,001-250,000: Ksh 108 The charges are the same you’re sending to another M-Pesa user, Pochi La Biashara, or a Business Till (Buy Goods) number. This means paying a local business or sending money to a friend costs the same. Saving tip: Transferring smaller amounts or using “send to bank” – instead of withdrawing from an agent and depositing in a bank- can help save money in the long run. Withdrawing money— agent and ATM fees: To withdraw cash, M-Pesa agents are a good go-to option. However, ATM withdrawals are also an option. Charges for both agents and ATM withdrawals vary according to the amount. M-Pesa withdrawal agent’s fee breakdown: Ksh 101-2500: Ksh 29 Ksh 2,501-3,500: Ksh 52 Ksh 3,501-10,000: Ksh 69-115 Ksh 10,001-35,000: Ksh 167-197 Ksh 35,001-250,000: Ksh 278-309 M-Pesa ATM withdrawal tariff: Ksh 200-2500: Ksh 35 Ksh 2,501-5,000: Ksh 69 Ksh 5,001-10,000: Ksh 115 Ksh 10,001-35,000: Ksh 203 While convenient, ATM withdrawals cost slightly more in some cases, especially for amounts between Ksh 2,500 and Ksh 35,000. Saving tip: Withdraw in larger sums when possible. Multiple withdrawals will result in higher cumulative fees. Other M-Pesa services and what they cost: M-Pesa keeps most of its basic services free, which is welcome news to everyday users. Here is a quick summary: Deposits: Free Registration: Free Checking balance: Free Buying airtime: Free Changing pins: Free This means the only times you’re charged for fees are when you’re sending or withdrawing. Saving tip. Everything here is free; we can all skip this part. M-Pesa limits you should know (2025 update) With Safaricom’s 2025 update, here are the official transaction and account limits: The maximum account balance is Ksh 500,000 The maximum daily transaction value is Ksh 500,000 The maximum amount per transaction is KSh 250,000 Minimum amount to withdraw at an agent outlet is Ksh 50 5 tips to save on M-Pesa charges: If you’re tired of those small fees eating into your money, you should try these tricks: Instead of splitting payments and paying multiple fees, send larger sums at once. Use Paybill or Buy Goods for business payments. Some merchants absorb fees. Avoid unnecessary withdrawals. Use the M-Pesa mobile app or USSD 234# for self-service— it’s free to check balance or reverse errors. Move money from M-Pesa to bank accounts; it’s often cheaper than cashing out through agent outlets. M-Pesa in 2025 M-Pesa continues to hold a considerable market share in Kenya’s digital payment space, making banking easier for millions across cities, towns, and rural areas every single day. Safaricom, the parent company, has worked to make the platform transparent, secure, and user-friendly by introducing clear tariffs and higher transaction limits that support Kenya’s growing economy.
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Bitcoin price crashes below $120k as Trump raises tariff charged to China by 100%
The global crypto market faced a major price dip, plummeting below the critical $120k support level over 24 hours after United States President Donald Trump threatened to increase tariffs on Chinese imports by 100% starting November 1. In a post on Truth social media, Trump accused Beijing of being hostile, attempting to hold the world ‘captive’, and sending letters to countries all over the world on plans to impose Export Controls on every element of production. Bitcoin crashes below $120k amid panic selling: Before Trump’s comment, BTC had charted a new all-time high some days ago, and was trading at $121,300 before plummeting below $120k, setting a new low at $109k on Binance. Ethereum dipped below $3,500, and Solana dumped below $150. Bitcoin’s drop represented a loss of over $10k in less than an hour. BTC dipped under $114k before the decline got worse, wiping over $250B from total crypto market capitalisation, making it one of the biggest single-day declines of 2025. As of press time, BTC sells at $112,296 with a 7.91% decline in value, while ETH sells at $3,816 with a 12.52% decline in value. $5 Billion in crypto liquidation in 24 hours: The ripple effect of the POTUS announcement affected the crypto market, which witnessed over $7.5 billion in positions liquidated within an hour. As per data from Coinglass on Saturday, October 1, BTC leads with $5.39B in liquidation, followed by ETH at $4.45B, with Solana liquidation hitting $2.02B and XRP liquidation sitting at $710.35m in 24 hours. In the past 24 hours,1,673,146 traders were liquidated, and the total liquidations come in at $19.38B. The largest liquidation happened on Hyperliquid -ETH-USDT value $203.36m. Institutional buyers see opportunity amid volatility. Despite the chaos, institutional demand for Bitcoin appeared resilient. Glassnode noted that ‘$BTC ETF inflows have continued despite the recent pullback, showing that institutional demand remains steady even as derivatives traders get chopped. This suggests structural buying is still underpinning the market, helping to absorb volatility and stabilise price action.’ Key takeaways: Bitcoin dropped below $120k, hitting as low as $109k on some exchanges Over $1B positions liquidated in less than 24 hours Ethereum, Solana, and other major altcoins suffered steep declines Institutional inflows into Bitcoin ETFs suggest confidence in long-term recovery Trump’s tariff threat reignited trade war fears, upsetting global risk assets.
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