POS Transactions Hit N18.78trn as Fibre Cuts Threaten Cashless Gains

Nigeria's electronic payments sector witnessed a significant surge in the first quarter of 2026, with Point of Sale transactions reaching N18.78 trillion, a 79.03% increase year-on-year. The rapid growth in digital payments is driven by the expansion of agent banking services, which have become a vital channel for reaching underbanked and remote communities.

However, this progress is hampered by persistent disruptions to the telecommunications infrastructure that underpin these digital transactions. Between January and June 2026, the Nigerian Communications Commission reported over 5,000 instances of fibre-optic cable cuts, averaging 28 incidents per day. Many of these damages are attributed to civil works such as road construction and excavation, alongside deliberate vandalism.

The scale of the problem poses significant challenges for businesses and consumers reliant on electronic payments, as disruptions to critical network links can render POS terminals inoperable, delay electronic transfers, and compel customers to revert to cash or alternative payment methods. The Central Bank of Nigeria has recognized the importance of dependable telecommunications infrastructure for financial inclusion, particularly in underserved areas, and the growing dependence of commerce on connectivity is reflected in the continued investment by telecom operators.

Both MTN Nigeria and Airtel Africa have prioritized network densification and fibre expansion, recognizing the critical role of robust infrastructure in supporting the expanding digital economy.