The Nigeria Inter-Bank Settlement Systems (NIBSS) has announced that Nigerians transacted a total of N89.5 trillion through electronic channels in July 2024. This figure marks the highest monthly transaction value ever recorded on the NIBSS Instant Payment (NIP) platform.
This July figure represents an impressive 89 per cent increase compared to the N47.4 trillion recorded in the same month last year.
Cumulatively, the total value of electronic transactions in Nigeria from January to July 2024 has reached N566.3 trillion, bringing it close to the N600 trillion total recorded for the entire year of 2023, with five additional months of data yet to be included for this year.
The number of NIP transactions processed by NIBSS also rose significantly, increasing from 743 million in July 2023 to 907 million in July 2024— a 22 per cent year-on-year increase.
Industry analysts attribute the surge in e-payment transactions to a recent cash crunch and the Central Bank of Nigeria’s (CBN) cashless policy, which limits daily cash withdrawals. Under the revised cashless policy, which took effect on January 9, 2023, individual cash withdrawals are capped at N500,000 per week, while corporate entities face a limit of N5 million weekly.
Lagos-based financial analyst Mr. Adewale Adeoye noted that the reduced availability of cash in banks has encouraged more Nigerians to adopt cashless payment methods. He explained that those needing cash often turn to Point of Sale (PoS) operators, using either card payments or account transfers to access funds.
“Electronic transactions are likely to keep rising as banks are less inclined to dispense cash as before. Beyond the CBN withdrawal limits, customers frequently find themselves limited to withdrawing only N5,000 over the counter at banks. Consequently, they resort to ATMs, which are often also short of cash. When all else fails, they seek out PoS operators or rely on mobile transfers,” he said.
The NIBSS Instant Payments (NIP) system, launched in 2011, is an account-number-based, real-time interbank payment solution that has become the preferred platform for fund transfers in Nigeria, ensuring instant value for beneficiaries.
Over the years, Nigerian banks have integrated NIP into various customer-accessible channels, including internet banking, bank branches, kiosks, mobile apps, Unstructured Supplementary Service Data (USSD), PoS, and ATMs.
The cash scarcity experienced in March 2023, combined with the CBN’s revised cashless policy limiting daily cash withdrawals, has significantly driven the growth of e-payment transactions. As a result, many Nigerians are increasingly adapting to mobile transfers, PoS payments, and other electronic methods.
