According to recent statistics from the Nigeria Inter-Bank Settlement System, cashless transactions in Nigeria increased by 42.05 percent to N395.47 trillion in 2022. According to the latest figures, Nigerians processed N117.07 trillion more in cashless transactions in 2022 than they did in 2021 (N278.39 trillion).
The total amount processed on the Nigeria Instant Payment System and Point of Sales terminals, which is how cashless transactions are recorded on the NIBSS, was N395.47tn handled in 2022. Since the COVID-19 epidemic, when acceptance of electronic payment methods in Nigeria began to increase, this has maintained the trend. NIP transactions were N387.08 trillion over the time period, while PoS transactions came to N8.39 trillion.
N271.96 trillion worth of NIP transactions and N6.43 trillion worth of PoS were processed within the same time period in 2021. The biggest number of e-payments were made in December over the two time periods under study. In December 2022, NIP and PoS transactions were N42.03 trillion and N826.30 billion, respectively.
NIP and PoS transactions totaled N30.26 trillion and N699.75 billion, respectively, in December 2021. According to the NIBSS’s “Instant Payments – 2020 Annual Statistics” report, the pandemic altered the country’s e-Payments environment and hastened the adoption of instant payments by encouraging more individuals to use electronic channels for money transfers.
A new Central Bank of Nigeria is predicted to favor cashless transactions in 2023, which would likely contribute to the rise of e-payment.
The apex bank’s new “Naira Redesign Policy – Revised Cash Withdrawal Limits” aims to reduce cash transactions. Cash transactions in the nation are expected to slow down with a weekly withdrawal cap (without penalties) of N500,000 for individuals and N5m for corporations.
It said, “Customers should be encouraged to use alternative channels (Internet banking, mobile banking apps, USSD, cards/POS, eNaira, etc.) to conduct their banking transactions.”According to a recent survey by Mastercard, 91 per cent of respondents in Nigeria use digital platforms to make financial transactions.
The report titled ‘Financial Inclusion – Connecting People to Finance, Health, and Education’ said, “There is now a greater awareness of mobile money, combined with a broader diversification in its uses. Consumers are now more open to using mobile money for more than just transactions.
“They are using credit, savings, and insurance products; in many cases, mobile money is being used to receive payments for services or products. Consumers are also paying bills and buying products using mobile money.”
