The Nigeria Inter-Bank Settlement System (NIBSS) has revealed a significant surge in electronic payment transactions in Nigeria, reaching a staggering N234.4 trillion in the first quarter (Q1) of 2024, reflecting a growing inclination towards cashless transactions among Nigerians.
Data released by NIBSS indicates an 89% increase in the value of Instant Payment (NIP) transactions compared to Q1 2023, rising from N123.9 trillion to the current N234.4 trillion.
The rise in electronic payments was observed consistently throughout the quarter, with January recording N72.1 trillion, February increasing to N79.3 trillion, and March peaking at an unprecedented N83 trillion.
Furthermore, the volume of electronic transactions exhibited a steady upward trend, with January recording 887.58 million transactions, February witnessing a jump to 905 million, and March culminating in a total of 986.6 million transactions.
Industry analysts attribute this surge in electronic payments to various factors, including the recent cash crunch experience and the cashless policy implemented by the Central Bank of Nigeria (CBN). The revised cashless policy, effective since January 9, 2023, imposes withdrawal limits of N500,000 per week for individuals and N5 million per week for corporate organizations.
Adewale Adeoye, a Lagos-based financial analyst, emphasized that the shift towards electronic payments was inevitable, particularly after the challenges faced during the cash crunch period in March last year. Many Nigerians, introduced to cashless transactions for the first time, have since embraced alternatives such as Point of Sale (PoS) payments, bank transfers, and mobile transactions.
The NIBSS Instant Payment (NIP) platform, introduced in 2011, has played a pivotal role in facilitating these electronic transactions. Utilized across various banking channels including internet banking, mobile apps, USSD, and ATMs, NIP ensures instant value transfer between accounts, further promoting the adoption of electronic payment solutions.
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