The value of electronic transactions in Nigeria in 2024 rose by 79 per cent compared to the previous year to a record high of N1.08qd (quadrillion)
This is according to the latest data from the Nigeria Inter-Bank Settlement System on the value of NIBSS Instant Payments.
The NIBSS Instant Payments is an account-number-based, online real-time Inter-bank payment solution developed in the year 2011 by NIBSS. It guarantees instant value to the beneficiary.
An analysis of the data showed that the value of electronic transactions has grown steadily in 2024 from N72.11tn in January to the highs of the last quarter when in October, NIP transactions stood at N103.21tn and rose to N109.53tn in November before hitting N115.12tn in December.
January, which recorded the lowest monthly value at N72.11tn, was higher than the value from all the months in the previous year indicating an increased embrace of digital means of payment.
On the volume side, electronic transactions increased by 13.69 per cent from 11.69 billion to 13.92 billion at the end of 2024.
The highest volume of transactions in 2024 was recorded in May at 1.02 billion and the lowest was in June at 871.66 million.
Effective January 9, 2023, the Central Bank of Nigeria announced an upward review of its cash withdrawal policy across all payment channels by individuals and corporate organisations.
The apex bank said the new policy on cash-based transactions was to reduce the amount of physical cash circulating in the economy and to encourage the use of electronic means for the payments for goods, and services among others.
According to CBN, the cashless policy will reduce the cost of banking services including the cost of credit, and drive financial inclusion by providing more efficient transaction options and greater reach; improve the effectiveness of monetary policy in managing inflation and driving economic growth; provide increased convenience and more service options for consumers and reduce the risk of cash-related crimes, particularly banditry, ransom taking and terrorism financing as well as provide cheaper access to banking services and access to credit.
On financial inclusion, the EFInA Access to Finance Survey revealed that more Nigerians are now captured in the formal banking system even as gaps persist.
Financial inclusion rose to 74 per cent in 2023 from 68 per cent in 2020, while 26 per cent of Nigerians are financially excluded, according to the 2023 EFInA Access to Finance Survey.
Speaking on the development, the National President of the Association Of Mobile Money And Bank Agents In Nigeria, Sarafadeen Fasasi, highlighted the drivers of the trend.
He told the Newsmen, “Financial inclusion is meant to bring the unbanked into the banking space and make people transact digitally without cash. When you look at it, there has been an increase in the number of agents deployed over the years and agents have been able to penetrate the nooks and crannies of this country and they are helping those unbanked to transact digitally.
“I think as of today, petty traders bank with agents. They no longer send cash through motor parks from one village market to their wholesaler in the city. What they do now is meet with the agent in the market and give the agent the account number of their wholesaler and in minutes, they get confirmation of their payment and that is making us have more visibility and traction via digital means.
“I think that NIBSS has improved. The failure rate has become very low. People are beginning to have more trust in our digital system. When you look at the downtimes of NIBSS, unlike two to three years ago when the portal was not readily available, you hardly find that now.”
An economist and sustainability expert, Marcel Okeke, described it as a positive development especially as regards a cashless economy.
He said, “That is a good thing. That should indicate some progress with the cashless economy. However, I’m surprised that we have that kind of rapid increase in electronic transactions because if you check you will also see that people have been desperate to look for cash since the naira redesign initiative largely failed. Maybe, that is what has pushed people to electronic transactions. By and large, this is a good thing. You know the dangers of carrying cash around.”
Okeke, however, cautioned about cyberthreats saying, “That is a warning we have to issue. So that the authorities will be doing their best to improve conditions. No human system is ever error-proof. It has to be backed up in the area of cybercrime protection. You cannot talk of a perfect system where you won’t even have failed transactions.”
An economic and financial analyst, Rotimi Fakayejo, also hailed the development.
He said, “Nigeria is where the e-payment system is most effective all over the world. Even in the US, it is not as acceptable. The volume is not as high as Nigeria’s. In Nigeria, we make frequent purchases. We are paying for everything from N500, N1000, N500,000 but the basic reason is that the scarcity of Nigeria which happened in 2023 has made a lot of people trust more in electronic payment and the risk is low.”
NOTE: YOU can join our Online Platform for the News updates by sending your Full name & Location to us on WhatsApp and for your Advert and Publication @ 08072633727
YOU CAN READ MORE NEWS UPDATES AND INFO @ https://www.voiceairmedia.com