The latest data from the Nigeria Inter-Bank Settlement System (NIBSS) showed that growth in the various electronic payment channels remained stable in the past seven months of 2022.
According to the statistics, transactions worth N204.5 trillion were performed electronically in Nigeria between January and July this year through the NIBSS Instant Payment platform (NIP).
This shows a 40 per cent increase in e-payments in the country when compared with N145.8 trillion recorded in the same period last year.
The surge in electronic transactions shows that more Nigerians are embracing the cashless policy of the Central Bank of Nigeria (CBN).
NIBSS Instant Payment (NIP) transactions recorded a solid 40.9 per cent y/y and 46.5 per cent y/y increase in transaction value and volume to N205.5 trillion and 2.7 billion, respectively, from January to July.
For POS transactions, total transaction value and volume grew 29.3 per cent y/y and 25.0 per cent y/y, respectively, to N4.6 trillion and 679.8 million in the same review period.
The highest growth was recorded in the mobile transactions category where transaction value was more than twice as tall, beating that of the equivalent period in 2021 by 159.0 per cent y/y to N9.3 trillion. Likewise, transaction volume was up by 122.4 y/y to 300.6 million in the same period.
According to experts from CSL Stockbrokers Limited, Lagos, the growth in POS transactions shows the increase in agency banking services.
“Also, we believe the newly launched e-Naira, though still at the nascent stage, if fully integrated into the e-payment channels, will not be elusive of significant growth.”
Notwithstanding the growth, the Nigerian e-payments industry is still scratching the surface of its potential and poised for further growth as alternative payment channels evolve.
“We have seen the development of the Nigeria Quick Response (NQR) code by the NIBSS and more players are keying into facilitating contactless payments.
“The country’s favourable demographics and regulatory support continue to inform our expectation of accelerated growth of the Fintech industry in Nigeria. This expectation has received much attention from investors, which has led to significant investments as existing players look to position for future growth.”
