In a remarkable milestone for Nigeria’s financial sector, electronic payment transactions surged to a staggering N600 trillion in 2023, reflecting the nation’s growing embrace of cashless methods. This seismic shift has redefined how individuals and businesses transact, making e-payments increasingly ingrained in daily life.
The data, released by the Nigeria Inter-Bank Settlement System (NIBSS), reveals a 55% increase compared to the previous year’s transactions, which stood at N387 trillion in 20221. Let’s delve into the key highlights of this digital revolution:
E-Payment Volume Soars: March 2023 witnessed an unprecedented peak in e-payment volume, with 1.1 billion transactions recorded. This surge was attributed to cash scarcity challenges, prompting heightened reliance on electronic channels. However, December emerged as the month with the highest transaction value, surpassing all previous records on the NIBSS electronic payment platform.
Monthly Trajectory: Examining the monthly data paints an intriguing picture. January kicked off the year with transactions amounting to N38.9 trillion, setting the stage for a dynamic year. February saw a slight dip, while March experienced a notable spike to N48.3 trillion, likely fueled by temporary cash scarcity. As the year progressed, the momentum continued, culminating in December’s record-breaking N71.9 trillion.
Business Adaptation: Businesses swiftly recognized the efficiency and security offered by electronic transactions. The substantial increase in Point-of-Sale (PoS) transactions, reaching N10.73 trillion, is a testament to this shift. Streamlining payment processes, and PoS transactions fosters a more transparent business environment.
At the heart of this surge lies the NIBSS Instant Payments (NIP) platform, a cornerstone of Nigeria’s financial infrastructure since its inception in 2011. NIP remains the preferred funds transfer solution, providing instantaneous value across various banking channels, including Internet banking, mobile apps, USSD, POS, and ATM. The implementation of the revised cashless policy by the Central Bank of Nigeria, coupled with ongoing technological advancements, has catalyzed the adoption of e-payment solutions nationwide.
As Nigerians increasingly gravitate towards mobile transfers, POS payments, and USSD transactions, the trajectory of e-payment growth is poised to reshape the nation’s financial sector in the future. The digital veins of Nigeria’s economy are pulsating with unprecedented vitality, propelling the nation toward a cashless future.
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