Zone Processes Over ₦1 Trillion in Transactions as Nigerian Banks Adopt Blockchain

Zone, a Nigerian payment infrastructure company, has achieved a groundbreaking milestone by processing over ₦1 trillion in transactions on its blockchain network. This achievement occurred between November 2022 and December 2024, marking a major step forward as Nigerian banks adopt blockchain technology. According to Zone’s CEO, Obi Emetarom, this success came from processing 100 million transactions, with each transaction averaging ₦10,000.

This development is particularly significant because it showcases the potential of blockchain in Nigeria’s financial sector. While blockchain adoption in banking is still limited, Zone has managed to use the technology to power automated teller machine (ATM) transactions at a scale never seen before in the country. This is despite the fact that ATM usage has been declining in recent years, with transaction values dropping from ₦32.65 trillion in 2022 to ₦28.2 trillion in 2023 as more customers shift to Point-of-Sale (POS) terminals and digital payments.

Zone (Formerly Appzone)

Zone’s CEO explained that the choice to focus on ATMs was strategic. “We used the ATM as a pilot to introduce something new,” Emetarom said. “If there was wider adoption of ATMs, reaching ₦1 trillion in transactions would have been faster.” The company wanted to start with manageable transaction volumes to build a reliable system before scaling up.

Zone’s blockchain network offers faster settlement rates for ATM transactions, but it also supports POS payments through a feature called ZonePoS. After obtaining a switching license in 2022, Zone launched its blockchain pilot for ATMs in November of that year. The goal was to convince banks and regulators that blockchain could comply with financial regulations while automating processes traditionally handled manually.

One of the challenges Zone faced was overcoming skepticism from financial institutions about compliance risks associated with blockchain and decentralized finance (DeFi). Many banks fear fines or losing their licenses if they adopt non-compliant systems. However, Zone’s Layer-1 blockchain, capable of handling 10,000 transactions per second, has proven its reliability during the pilot phase.

In June 2024, Zone expanded its blockchain network to include POS terminals. By August 2024, the company had partnered with the Nigeria Inter-Bank Settlement System Plc (NIBSS), the country’s payment switch operator.

Zone Introduces Decentralized Payment Gateway to Combat Failures and Fraud

This partnership aimed to record POS transactions on Zone’s blockchain ledger for better transparency and efficiency. Although the rollout faced delays due to NIBSS’s institutional processes and regulatory approvals from the Central Bank of Nigeria (CBN), progress was made by December 2024 when the CBN gave its approval.

Currently, Zone is working with NIBSS on testing its network and ensuring data integrity before fully launching POS payment records on the blockchain. For now, it is collecting and storing POS terminal identities on its network while preparing for full-scale operations.

Zone’s achievements highlight how Nigerian banks are beginning to adopt blockchain technology for faster and more secure payment processing. With ₦1 trillion already processed in transactions and plans to expand into account-to-account fund transfers, Zone aims to bring its technology closer to everyday Nigerians while exploring opportunities beyond Nigeria’s borders. Although revenue numbers remain confidential, this milestone demonstrates how innovative solutions like Zone’s can transform financial systems in Africa and beyond.

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