from OKORO CHINEDU in Lagos, Nigeria
Nigeria Bureau
LAGOS, (CAJ News) – NIGERIA has recorded a significant growth of electronic payments, which augurs well with ambitions to enhance financial inclusion especially in rural areas.
The latest data from the Nigeria Inter-Bank Settlement System (NIBBS) indicates that the total value of electronic transactions recorded under its Instant Payments (NIP) between January and July 2022 amounted to N205,5 trillion (US$488,23 billion).
This represents growth of 41 percent year-on-year (y/y).
A 46-percet y/y increase in the number of transactions performed electronically, to 2,7 billion, supported the growth.
The mobile Unstructured Supplementary Service Data (USSD) channel allows all Nigerian banks access to the NIP payment platform.
FBN Quest Nigeria noted NIPS payment channel remained the dominant mode of funds transfer, accounting for 92 percent of total value of transfers made through formal payment channels.
Mobile, or inter-scheme, transactions recorded a total value of N9,3 trillion, less than transactions for NIPs.
However, it delivered the fastest growth of 159 percent y/y.
The point-of-sale (PoS) channel and e-bills pay platform recorded growth of 29 percent y/y and 32 percent y/y to N4,6 trillion and N1,7 trillion respectively over the same period.
Conversely, the growth of cheques remained flat at N1,8 trillion.
Historically, cheques have been a conventional means of payment.
Nigeria’s e-commerce market value is estimated at between $7 billion and $13 billion.
FNB Quest believes the nearly instantaneous speed at which transactions are completed and the strong adoption and uptake by the younger demographic are support the rapid growth of e-payment channels.
The population of over 200 million, the largest in Africa, also spurs the growth.
The regulatory push by the CBN to actively drive financial inclusion has also aided, particularly due to the cost reduction benefits of electronic payments compared with other payment channels.
“We believe the CBN’s approval of payment services bank licenses for the two biggest GSM operators in the country will further help to drive financial inclusion and faster adoption of e-payment channels, particularly in rural communities which are supposed to be a key focus for PSBs,” FBN stated.
– CAJ News