PoS Transactions in Nigeria Falls by 19% in Q1 2024 – CBN
The Central bank of Nigeria (CBN) in a recent report disclosed that Point-of-Sale transactions in Nigeria decline by 19% in the first quarter (Q1) of 2024.
Despite recording an initial rise in January, the volume of pos transactions dropped in the month of February and March. In January 2024, there was an initial rise in transaction volumes to 112.78 million, and increase from 96.35 million in the same month last year.
In February 2024, the volume of POS transactions decreased to 97.57 million from the 113.53 million recorded in the same month of the previous year. March continued this decline, with volumes falling to 103.65 million, down from the high of 177.93 million seen in March 2023.
During the first quarter of 2024, total transactions amounted to 314 million, showing a significant decline of 73.81 million compared to the same period in 2023. The scarcity of cash prompted a surge in cashless transactions, notably through PoS systems, as people sought alternatives for their daily transactions.
However, the recent decrease in POS usage hints at a potential shift away from the cashless trend, suggesting stabilization from the previous year’s cash shortage or the emergence of new consumer transaction patterns.
Notably, amid the decline in PoS transactions for Q1 2024, the CBN reported that cash outside the bank surged significantly. In January 2024, cash outside banks escalated to N3.28 trillion, which is an increase of 314% from N792.18 billion in the same month of 2023. For February, the amount skyrocketed further to N3.411 trillion, marking a 305% increase from the N843.31 billion recorded in February 2023.
