Joy Agwunobi
Recent data from the Nigeria Inter-Bank Settlement Systems (NIBSS) reveals that Nigerians conducted electronic transactions totalling N89.5 trillion in July 2024, marking an all-time high for monthly transaction values on the NIBSS Instant Payment (NIP) platform and represents an impressive 89 per cent increase compared to the N47.4 trillion recorded during the same period in 2023.
The NIBSS data highlights a significant shift towards digital transactions as the total value of e-payments for the first seven months of 2024 reached N566.3 trillion compared to the N600 trillion recorded for the entire year of 2023, indicating the rapid adoption in digital transactions towards electronic payments as Nigerians increasingly embrace cashless financial solutions.
The volume of NIP transactions also saw substantial growth, rising from 743 million in July 2023 to 907 million in July 2024, which translates to a 22 per cent year-on-year increase. This rise in e-payment transactions can be attributed to several factors, particularly the recent cash crunch and the Central Bank of Nigeria’s (CBN) cashless policy, which restricts the amount of cash individuals can withdraw daily.
As outlined in the revised cashless policy, effective January 9, 2023, individuals are limited to a maximum cash withdrawal of N500,000 per week, while corporate organisations have a withdrawal cap of N5 million per week. This shift in policy has forced many individuals and businesses that heavily relied on cash transactions to adapt by utilising electronic payment methods.
Consequently, there has been a marked increase in the use of Point of Sale (PoS) operators, enabling users to either utilise their cards for payments or transfer funds electronically to access cash or conduct mobile transactions.
As these digital payment systems continue to gain traction, experts have noted that they play a crucial role in the ongoing transformation of Nigeria’s financial landscape, highlighting a growing reliance on cashless transactions amid regulatory changes and economic pressures.
