Analysts at FBNQuest say a boost in mobile banking would increase financial inclusion and unlock productivity. Their position is coming on the heels of un-impressive data released recently by the country’s statistical agency, the National Bureau of Statistics (NBS) and the Central Bank of Nigeria (CBN).
Data released by the NBS, in collaboration with the CBN, indicate that 510 million transactions valued at N33 trillion were recorded on electronic payment channels in Q2 2018.
Additionally, data from the Nigeria Inter-Bank Settlement System (NIBSS), shows that about 39 percent of the population is potentially exposed to electronic payment transactions.
According to the research firm, even if the numbers are improving, there is vast room for improvement as regards financial inclusion, stating that the potential embedded in widening the access to finance digitally is a way of increasing investment and curbing corruption.
“Based on data from the Nigeria Inter-Bank Settlement System (NIBSS), total active bank accounts as at June 2018 stood at 73 million, pointing to 39 percent of the population are potentially exposed to electronic payment transactions. There is still vast room for improvement with regards to financial inclusion.
“Broadening access to finance through digital means can unlock productivity and investments, reduce poverty, and help build stronger institutions with less corruption. However, better synergy between telecommunication operators and banks needs to be achieved for mobile banking as well as e-payment transactions to grow strongly in Nigeria,” they noted.
The NBS data also revealed that ATM transactions dominated with a volume of 217 million. Internet subscriptions directly correlated with electronic transactions stood at 103 million as at end-June, according to the Nigerian Communications Commission, translating to a penetration of 56 percent.
The volume of point-of-sale (PoS) transactions indicates the impact of the CBN’s cashless policy on the economy. The NBS data show that 67 million PoS transactions were recorded in Q2 2018, representing increases of 26percent quarter-on-quarter and 105 percent year-on-year.
Meanwhile, mobile payments recorded 21 million transactions valued at N411 billion in Q2. The volume of transactions grew significantly by 79 percent year-on-year but accounted for only 4.1 percent of total electronic transactions.
Nigerian economy @ mid-term 2026: Review and commentary