The Evolution of Online Payment in Nigeria

Payments across Nigeria has changed, they are now digitalized giving rise to online payments in Nigeria which have helped a lot of people grow their business online because it breaks the physical barrier of processing cash transactions manually.

Payments are still done physically with cash exchange in Nigeria but we can't ignore online payments we live in a digital era where the Internet has brought about transformational change to our lives. 

According to the Nigerian Communications Commission (NCC), in June 2017 the number of internet users in Nigeria increased to 91.6 million that's 91,598,757 active internet users in Nigeria.
The Evolution of Online Payment in Nigeria

The Internet has made things a lot easier for both buyers and sellers in Nigeria. As a buyer, you don't need to leave your comfort zone before to pay your bills and as a seller, you don't have to knock on doors informing people of the service you render, it can now be placed online where payment is done online in real-time.

What is a Payment System?

A payment system is a platform that settles financial transactions between the buyer and seller. Payment systems are meant to ease the stress of both parties making an easy exchange or flow of money in a safe and secure environment.

History of Payment Systems in Nigeria

Cash payment systems dominated all transactions in Nigeria before 2010-2012. Nigeria operated in a cash-heavy environment and the Central Bank of Nigeria (CBN) introduced the cashless policy in 2012 with the objective of promoting electronic online payments instead of manual cash payments. The aim is to provide a payment system that is secure, convenient and affordable.

Payment systems transformed from paperwork to going paperless. Then, from cash payments to cashless electronic means of payment.

Evolution of Payment Systems in Nigeria

In Nigeria, we started with cash payments which included cheque payments then we moved to electronic payments in 2012. Electronic payment systems opened the doors other forms of payment systems in Nigeria. 

Electronic payment system moved to online payments, card payments, mobile payments, online banking and others. In 2018, online payments system has grown tremendously with the help of the internet.

Online Payment in Nigeria

Benefits of Online Payments in Nigeria

Online Payments have benefitted Nigerians -improving our economy positively giving rise to new business ideas, providing job solutions, empowering the youths, amongst other benefits.

We are going to be looking at the benefit of online payments to businesses/corporate, individuals and the government because online payment is to be encouraged because it brings about positive change to everyone in the country. It can be seen as a developmental tool to move the country forward if done properly.

Benefits of Online Payments to Businesses/Corporate

  1. More business opportunities
  2. Growth in sales
  3. International patronage
  4. Reduced bank charges
  5. Revenue assurance
  6. Increases accountability
  7. Provides for audit trail
  8. Blocking revenue leakages
  9. Low financial risk
  10. Impulsive buying
  11. Credit availability
  12. Reduced theft/crime
  13. Cost reduction
  14. Cost of handling cash is reduced
  15. Easy scalability of business

Benefits of Online Payments to Individuals

  1. Ease of access
  2. Increased convenience
  3. Make payments easier and faster
  4. Reduced risk of cash related problems
  5. Have access to more services at a glance
  6. More accountability and trail of payments
  7. Less stress

Benefits of Online Payments to the Government

  1. Increased tax collections
  2. Reduced employment rates
  3. Greater financial inclusions
  4. Increases economic development
  5. Infrastructural development
  6. Budget & Planning
fear of Online Payment in Nigeria

Fear of Using Online Payments in Nigeria

There are still individuals, groups of people that still don't believe in online payments and still use cash payments, which can be good in some cases but ultimately, online payment is the way to go. The biggest fear of online payments is fraud.

Many are still worried about Internet fraud, which basically means a stranger having unauthorized access to your credit card. Internet fraud remains the leading problem attached to online payments but that doesn't mean you should shell yourself from progress and innovation.

There are ways to safeguard your credit cards and prevent Internet fraud, which would give you the confidence to start using online payments to make payments and pay bills.

Quick Internet Fraud Prevention Tips

  • A quick to prevent internet fraud is to never show the back of your credit card to anyone. The back of your credit card contains your CVV and this 3 digit code can leave you penniless. So safeguard it.
  • Don't share your credit card details on Facebook, Twitter or any social media network because you don't know who might just be watching.
  • Never put your credit card details on an unsecured website without https:// and DMCA protection. This happens in most cases when you encounter something ridiculously cheap or you want to buy some weight loss pills.
  • Always use trusted online payment sites. The more popular and internationally accepted, the better and safer for you.
Online Payment Channels in Nigeria

Online Payment Channels in Nigeria

These are the various forms of online payment channels.
  • e-commerce websites
  • Online payment web portals
  • Payment gateways like GTPay.
  • Mobile payment platforms
  • Mobile banking

Uses of Online Payments in Nigeria

So, what do we use online payments for in Nigeria? Online Payments are being used in different areas of the Nigerian economy such as electricity or power, fashion, technology, etc.

What are online payments used for in Nigeria?

  1. Used by buyers to purchase goods and services.
  2. Used by sellers to receive money in real-time as they sell their goods and services.
  3. Used by companies to collect funds from their customers.
  4. For bill payments like electricity bills.
  5. P2P payments between two consumers like transfer of funds between two individuals through mobile banking or online banking.



Electricity is a big deal for Nigerians with fluctuating power supply in Nigeria and the need to pay your electricity bills to refill your prepaid or postpaid meter, online payments make this easy for individuals, homeowners, companies to do.

Using PayElectricityBills, you can easily pay your NEPA bills, pay PHCN bills, pay PHEDC bills, pay JEDC bills and other discos are also available for you.

With PayElectricityBills, you get simple bill payment from the comfort of your home. 

How to Use PayElectricityBills

how to use payelectricitybills

To start paying your electricity from the comfort of your home follow these 3 easy steps.
  1. Select your disco
  2. Enter your meter details
  3. Make payment

1. Select your Disco

A disco is an electricity distribution company which has obtained the proper licenses involved to distribute power in a state. We currently have 11 electricity distribution company (Discos) in Nigeria regulated by The Nigerian Electricity Regulatory Commission (NERC).
payelectricitybills discos

There are 11 different discos in Nigeria. Check your meter to verify which disco company you belong to but it's most likely if you stay in Jos, you would be serviced by JEDC. 
payelectricitybills nigerian discos

  • Abuja Electricity Distribution PLC (AEDC)
  • Benin Electricity Distribution PLC (BEDC)
  • Eko Electricity Distribution PLC (EKEDC)
  • Enugu Electricity Distribution PLC (EEDC)
  • Ibadan Electricity Distribution PLC (IBEDC)
  • Ikeja Electricity Distribution PLC (IKEDC)
  • Jos Electricity Distribution PLC (JEDC)
  • Kaduna Electricity Distribution PLC (KNEDC)
  • Kano Electricity Distribution PLC (KEDC)
  • Port-Harcourt Electricity Distribution PLC (PHEDC)
  • Yola Electricity Distribution PLC (YEDC)
The first step is to choose your electricity distribution company (Disco) from the list of available ones below. You can select your disco by clicking on the icons below.

2. Enter your Meter Details

This is the second step which requires you to input your correct meter details. Enter your meter account details, make sure it's correct. If it's not correct then you would receive an error message "incorrect details. Please check and try again". You are required to correctly enter your meter details in 5 different boxes.
pay nepa bills online

  • Account/Meter Number
  • Payer's full name
  • Email address (A working email address is required)
  • Phone number (Use a valid working phone number because your token would be generated and sent to your phone number).
  • Amount
After entering your correct meter details, click continue.

3. Make Payment

After your information has been verified you would be taken to a secure checkout page where you input your card information and now it's time to pay your electricity bills online using PayElectricityBills online payment platform, which has saved you a lot of time, money and stress. Payment is done using credit cards like Verve, MasterCard, VISA and so on.
pay electricity bills online

Your token would be generated and sent to your mobile phone number and email address. Input the token code into your meter to finish the process. You just successfully paid your electricity bills without going out or standing in long queues, you did everything from the comfort of your home.

PayElectricityBills Support

pay electricity bills online support

You can visit our support page if you have questions, concerns, contributions or encountered any problem while trying to pay your PHCN bills. You can reach out to our dedicated support team who are available 24/7.

To reach out to us via our support page, all you need to do is Open a new ticket, state your concerns and submit your ticket. You would receive an immediate response from the support team and follow up messages with useful information directed towards solving your problems. Use a valid email address so you can submit a ticket and receive follow up emails.

You can also sign in to check the status of your ticket.


TechAdvance is a payment application development company with a strategic focus in developing and deploying niche payment companies to serve the needs of large public and private sector organisations in Nigeria.

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