Cashless transactions in Nigeria increased to N318.66 trillion.
According to recent statistics by Nigeria Inter-Bank Settlement System (NIBSS), Nigeria is making great strides in strengthening and implementing its cashless policy plan. The Nigeria Inter-Bank Settlement System released a study showing that cashless transactions in Nigeria increased to N318.66 trillion between January and November of 2022. This increase coincides with the Central Bank of Nigeria’s efforts to promote the use of electronic payments. It was determined utilizing data collected on sales figures from PoS terminals and the Nigeria Instant Payment System.
Additionally, analysts have observed that an increasing number of Nigerians are becoming cognizant of the benefits of utilizing electronic payment methods. Compared to the N224.79 trillion recorded in the same period in 2021, the new figure reflects a 45.75 percent increase. This new amount is an indicator of a significant expansion of Nigeria’s digital payment infrastructure, with PoS transactions accounting for a total of N6.85 trillion and NIP transactions accounting for a total of N311.81 trillion.
The COVID-19 epidemic raised the adoption of instant payments.
Between January and November of 2022, Nigerians perform cashless transactions worth a total of N318 trillion through PoS transactions and internet payments. Earlier, the NIBSS had revealed in a study that, since the COVID-19 epidemic, there had been a rise in the adoption of instant payments. This is due to the fact that bank clients choose to utilize electronic payment channels in order to exchange cash when the nation is under lockdown. Even once the COVID lockdown was lifted, there was no turning back since people had become acquainted with the convenience of the alternate system by that point.
New information arose in the wake of the recent decrease in the cash withdrawal limit imposed on people and business entities by the Central Bank of Nigeria. This change, which is scheduled to go into effect on January 9, 2023, was the impetus for the announcement. For the purpose of promoting the use of electronic-based transactions in the purchase and transfer of products and monies, the Central Bank of Nigeria (CBN) implemented a policy in 2012. The policy was designed to address several pressing issues in the country, which include reducing the quantity of currency in circulation by discouraging its use.
Mobile phones, POS adoption, are driving cashless transactions.
Expanding the scope and efficiency of financial services to let more people participate in the economy for Nigeria’s monetary system to catch up to other global competitors. The effective control of inflation through enhanced monetary policy catalyzes economic expansion. The policy was also established with the expectation that it would reduce the exposure to dangers connected with handling cash. The experts weigh in on why we need to ditch paper money. Fidelity Bank’s marketing officer, Hakeem Odulaja, attributes the rise in cashless transactions to the widespread use of mobile phones and the accessibility of point-of-sale (PoS) agents.
Nowadays, you can easily make any money transfer or withdrawal at any of the PoS agent outlets that can be found on the streets of the main cities in the nation. The widespread availability of mobile phones nowadays means that many financial transactions may be completed without ever setting foot inside a bank. Similarly, Cynthia Odolor, a client who uses point-of-sale terminals, automated teller machines, and her bank’s mobile app rather than going into a branch, explains that she utilized the online payment option frequently rather than visiting the bank.
Latest cashless regulations push people to release naira.
Several naira denominations printed as long as two decades ago have emerged after the CBN announced a deadline for old naira notes to be deposited in banks throughout the country. Some banks have notified their clients through email and text messages that they have until January 31, 2023, to deposit their old naira notes or risk having them rejected. Several online videos have shown hundreds or even millions of naira being destroyed by natural disasters as a result of people hoarding the currency.
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NIBSS: Website
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FG strengthens cashless policy plan – Cashless transactions in Nigeria increased to N318.66 trillion. – Express your point of view.
The cashless policy introduced sometime ago by the CBN is very a good initiative because most of the developed world have been using this type of transaction since and it ha lots of advantages to both the citizens and the financial institutions.
Cashless policies will thrive well and more than this figure given if the awareness is taken to the grassroots and creating an enabling environment for such for example commercial vehicles who still collect cash, petty traders etc. chargers on items purchased should also varies depending on the amount.
The monetary and cashless policy enforced in recent times by the Buhari led administration are just outstanding and superb. Its all for the betterment of the country currency management in the long run.
Cashless policy plan is very good. The only downturn to is that the Mobile banking network is not just bad,the skyrocketing processing fees and maintenances fees the bank deducts is so high. That shouldn’t be. They just keep exploiting us.
Nigeria and cashless policies go hand in hand now,and it is been thrieved with Advent of phones and use of POS offices and it has helped in creating jobs and pushing the cashless policy
It is very encouraging to see Nigeria make significant progress toward its goal of developing and putting into practice a cashless policy plan, which is to the country’s benefit.
This growth has occurred at the same time as the Central Bank of Nigeria has been working to encourage the usage of electronic payment methods.
It was estimated by using data that was obtained on sales figures from PoS terminals and the Nigeria Rapid Payment Method.
Cashless policy is great. The only downside of mobile banking is the bank’s increasing processing and maintenance fees. It shouldn’t. They keep exploiting us.
That Nigeria has made great headway toward its aim of creating and implementing a cashless policy plan is very heartening.
According to the observations of industry analysts, an ever-increasing proportion of Nigerians are becoming aware of the advantages of adopting electronic payment methods.
Cashless policy is an amazing idea. Certain things just need to be put in place. Mobile bank apps need to be more efficient. Issues of delayed transfer and all of that beed to be handled.
If information is spread to the grassroots and an enabling atmosphere is created for commercial vehicles that still accept cash, petty traders.cashless policies will thrive and exceed this amount.
People had become accustomed to the ease of the new system by the time the COVID lockdown was removed, so there was no going back.
This cashless policy that is newly brought is a good innovation it will really help to make thing balance in the country and as a good impact a lot of foreign countries are using this kind of policy which work out well
In order for Nigeria’s financial system to catch up to its global competitors, it must expand the breadth and depth of financial services to allow more people to engage in the economy.
In the wake of the recent reduction in the cash withdrawal limit that the Central Bank of Nigeria imposed on individuals and commercial entities, new information has surfaced. This information is relevant to current events.
Cashless transactions in Nigeria increased to N318.66 trillion. It really helping us, also creating more job opportunities. Cashless policy is very good
Cashless policy is an amazing idea.
Issues of delayed transfer and all of that need to be handled. I expect mobile bank apps need to be more efficient.
The cashless policy initialized by the CBN is actually becoming more populatar among Nigerian with the strong support of federal government of Nigeria with cashless transaction of increasing to this hight that is great.
The cashless policy is a great idea. The sole drawback of mobile banking is that it has a poor network and that the bank charges exorbitant processing and maintenance costs.