Cashless transactions rise to N395tn

According to new data 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 new data, Nigerians used cashless payment methods to process N117.07tn more than the N278.39tn processed in 2021.

The total amount processed on the Nigeria Instant Payment System and Point of Sales terminals in 2022 was N395.47tn, which is how cashless transactions are recorded on the NIBSS.

This continued Nigeria's growing adoption of electronic payment channels, which began during the COVID-19 pandemic. NIP transactions totaled N387.08 trillion during the period, while PoS transactions totaled N8.39 trillion.

Total NIP transactions in 2021 were N271.96 trillion, with PoS transactions totaling N6.43 trillion. December had the highest number of e-payments in the two periods under consideration. In December 2022, NIP and PoS transactions totaled N42.03 trillion and N826.30 billion, respectively.

NIP and PoS transactions totaled N30.26tn and N699.75bn in December 2021, respectively. According to the NIBSS's 'Instant Payments - 2020 Annual Statistics' report, the pandemic altered the country's e-Payments landscape and accelerated the adoption of instant payments, with more people using electronic channels for funds exchange.

With a new Central Bank of Nigeria favoring cashless transactions, the growth of e-payment is expected to continue in 2023.

The apex bank's new 'Naira Redesign Policy - Revised Cash Withdrawal Limits' is intended to reduce cash transactions. With a weekly withdrawal limit (without penalties) of N500,000 for individuals and N5m for corporations, cash transactions in the country are expected to slow.

It stated that "customers should be encouraged to conduct their banking transactions through alternative channels (Internet banking, mobile banking apps, USSD, cards/POS, eNaira, etc.)."

According to a recent Mastercard survey, 91% of Nigerians use digital platforms to conduct 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 increasingly willing to use mobile money for purposes other than 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 using mobile money to pay bills and buy products."

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