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Nigeria’s e-transactions hit a peak

Nigeria’s e-transactions hit a peak
Photo by Duncan Meyer- Ask Nigeria

NIP total volume transactions increased to 5.2 billion in 2022.

As Nigeria moves towards embracing a complete cashless policy system, Nigerians have shown a substantial turn up in adopting digital channels as a means of financial transactions, such as banking apps and websites, among others, considering their efficacious and effectiveness. The development has also been boosted by the limit withdrawal policy enforced by the CBN, as Nigerians are now compelled to operate on electronic banking channels. Recent data from the Nigeria Inter-Bank Settlement System (NIBSS) shows that the rate of e-transactions carried out across the country has risen to a peak in 2022.

An analysis of the data shows that the total volume of NIBSS Instant Payment platform transactions increased by 613.1 percent to 5.2 billion in 2022 from 729.2 million in 2018. While its value also increased by 381.5 percent from N80.4 trillion in 2018 to N387.1 trillion in the same period last year. Initially, the development began to receive rise during the lockdown period warranted by the covid-19 pandemic prior to the massive adoption in 2022.

Country ranks among top 10 most developed real-time payments markets.

Experts have attributed the surge in e-payment usage to the teledensity rate and the number of internet subscribers, claiming that it has been projected. The majority now have access to mobile devices, e-banking and online services, justifying the increase. NIP, which also received an increase, is an account-number-based, online real-time Inter-Bank payment solution developed in 2011 by NIBSS. Presently, NIP is the most prevalent platform used for funds transfers in the Nigerian financial industry, which assures instant value to the beneficiary.

NIP is adopted nationwide by commercial banks, micro-finance banks, and mobile money operators who utilize the platform in their operations such as internet banking, mobile apps, Point of Sales (PoS) and Automatic Teller Machines. According to the latest ranking report by ACI Worldwide Inc., a software company providing real-time payment solutions, Nigeria ranks among the top 10 countries in the most developed real-time payments markets. The report positioned Nigeria as one of the countries where real-time payments provide enormous economic growth opportunities, ranking sixth behind South Korea, Brazil, Thailand, China and India.

The number of real-time transactions will increase to 8.8 billion in 2026.

In 2021, businesses and consumers in Nigeria saved a total of $296 million on transaction costs, increasing the country’s GDP by 0.67 percentage points to $3.2 billion. It is anticipated that by the year 2026, the number of real-time transactions will have increased to 8.8 billion, resulting in a rise in the total net savings realized by consumers and businesses to $2.3 billion. That would contribute an extra $6 billion in economic output or 1.01 percent of the nation’s expected GDP.

Additional analysis of the NIBSS data reveals that the total number of mobile transfers increased by 151.4 percent, from 284.5 million in 2021 to 715.1 million in 2022. And its value increased by 139.5 percent to a whopping $19.4 trillion. A similar increase in volume was seen in POS systems, which saw their usage rise from 982.7 million in 2020 to 1.2 billion by 2021, a 22 percent increase. Value-wise, it increased by 31.3 percent from N6.4 trillion to N8.4 trillion over the course of the year. However, during this same period, the number of cheque transactions decreased from 4.5 billion to 4.1 billion, a decrease of 9.8 percent.

Nigerians are becoming more receptive to using mobile money.

A recent survey conducted by Mastercard found that nearly all Nigerians now prefer to perform their online transactions. When compared to other countries in the Middle East and Africa, such as Kenya (87%), Pakistan (66%), Jordan (53%), Morocco (34%), and Iraq (22%), this significant proportion makes the country the most overly dependent on the technology representing 27 percent. This bolstered the verity that Nigerians, especially buyers, are becoming more receptive to using mobile money for various purposes beyond just making purchases.


Related Link

NIBSS: Website

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Admin
1
10 days ago

Nigeria’s e-transactions hit a peakNIP total volume transactions increased to 5.2 billion in 2022. – Express your point of view.

Abusi
Member
8
10 days ago

Nigeria is moving into electronic transaction. This will help make business easy for people. It will also facilitate more flow of cash from businesses to another.

Member
8
10 days ago

The Central Bank of Nigeria (CBN) has implemented a limit withdrawal policy, which means that Nigerians are now required to conduct their financial transactions through electronic banking channels. This progress has also been helped along by this policy.

Member
8
10 days ago

Very nice to hear Nigeria draws closer to implementing a cashless policy system, Nigerians have exhibited a significant turn up in using digital channels as a method of conducting their financial transactions. This is a positive development for the country.

Member
8
10 days ago

The increase in the utilization of electronic payments can be traced back to the teledensity rate as well as the number of internet customers.

Member
8
10 days ago

Originally, the work started to pick up steam during the lockdown period that was mandated by the covid-19 epidemic in the years leading up to the massive adoption in 2022.

Member
8
10 days ago

This provided further evidence that Nigerians, particularly consumers who make purchases, are growing increasingly open to the idea of utilizing mobile money for a variety of functions beyond from simply conducting financial transactions.

Member
8
10 days ago

It is really heartening to see that almost all Nigerians today favor carrying out their business dealings via the Internet.

Member
8
10 days ago

The Nigerian Interbank Payments System (NIP) is the most widely used platform for the movement of cash in the Nigerian financial industry. This guarantees instant value to the recipient of the transfer.

Member
9
10 days ago

NIP total volume transactions increased to 5.2 billion in 2022. Moving into electronic transaction will also reduce the risk and also increase business

Member
8
10 days ago

Majority of the people are also adopting the cashless policy and shifting to performing online transaction especially in my area. This is truly a significant progress in the country.

Member
8
10 days ago

Nigerians have exhibited a significant turn up in using digital channels as a method of conducting their financial transactions. This is a positive development for the country.

Member
8
9 days ago

With the new withdrawal policy we are now moving into electronic transaction which will make business easy for people are make case flow we are moving into digital world

Member
9
9 days ago

Wow Nigerians are so.impressive our e transactions has gotten to.the.peak because of volumes of transactions done daily.this has really boost the Nigeria economy.

Member
8
9 days ago

It is truly encouraging to observe that practically all Nigerians today prefer conducting their commercial transactions online, as this trend has become almost universal in the country.

Member
8
9 days ago

Nigerians have shown a marked increase in adopting digital channels as a method of conducting financial transactions, thus it’s great news that the country is moving closer to implementing a cashless policy system. What has happened is good news for the country.

Member
8
9 days ago

Both the rate of teledensity and the number of internet consumers can be held responsible for the rise in the use of electronic payment methods.

Member
8
9 days ago

The large volume of online sir transaction by Nigerians was as a result of the newly enforce policies by the CBN and I believe it will increase beyond this.

Member
8
9 days ago

The e-transactions in Nigeria though at its peak now, but still on the increase. This is as a result of the new policies of withdrawal limit by the CBN.

Member
8
9 days ago

The CBN’s restrict withdrawal policy, which forces Nigerians to use electronic banking channels, has also accelerated the growth.

Member
8
8 days ago

Due to the Central Bank of Nigeria’s (CBN) implementation of a limit withdrawal policy, all financial transactions in Nigerian are now to be made through electronic banking channels. This policy has also contributed to this progress.

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