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.