Nigerians Spent N89.5 Trillion via E-Payment Channels in July 2024, NIBSS Reports
The Nigeria Inter-Bank Settlement Systems (NIBSS) has disclosed that Nigerians conducted electronic transactions amounting to N89.5 trillion in July 2024. This marks the highest monthly transaction value ever recorded on the NIBSS Instant Payment (NIP) platform.
The figure represents an 89% year-on-year increase compared to N47.4 trillion in the same period last year. With this significant rise, the total value of electronic transactions between January and July 2024 reached N566.3 trillion. This seven-month total is close to the N600 trillion recorded in the full year of 2023, with five months of transactions still left for the year.
In terms of volume, NIP transactions surged from 743 million in July 2023 to 907 million in July 2024, reflecting a 22% increase year on year.
Impact of the CBN Cashless Policy
Industry analysts attribute the rise in e-payment transactions to the Central Bank of Nigeria’s (CBN) cashless policy and the recent cash shortages experienced in the country. The revised cashless policy, effective January 9, 2023, caps weekly cash withdrawals at N500,000 for individuals and N5 million for corporate entities.
A Lagos-based financial analyst, Mr. Adewale Adeoye, noted that the limited availability of cash in banks is pushing more Nigerians to adopt electronic payment methods. He explained that those in need of cash often turn to Point of Sale (PoS) operators, where they either use cards or transfer funds to receive cash.
Adeoye also pointed out that with banks limiting cash withdrawals to as little as N5,000 over the counter and ATMs often running low on cash, many Nigerians have resorted to mobile transfers and PoS services. Consequently, the trend of increasing electronic transactions is expected to continue as banks remain reluctant to release large amounts of cash.
Source: Nairametrics
