In a testament to Nigeria’s growing embrace of cashless payments, electronic payment transactions surged to a remarkable N600 trillion in 2023, marking a significant milestone in the nation’s financial landscape. Data released by the Nigeria Inter-Bank Settlement System (NIBSS) revealed a staggering 55% increase from the N387 trillion recorded in 2022.
The year witnessed a steady uptick in e-payment transactions, with December emerging as the pinnacle of spending fervor, totaling N71.9 trillion.
March 2023 witnessed an unprecedented peak in e-payment volume, reaching 1.1 billion transactions, attributed to cash scarcity challenges prompting heightened reliance on electronic channels. However, December emerged as the month with the highest transaction value, surpassing all previous records on the NIBSS electronic payment platform.
The volume of transactions processed by NIBSS soared from 5.1 billion in 2022 to an impressive 9.7 billion in 2023, indicating a substantial 90 per cent year-on-year increase.
A closer look at monthly e-payment values reveals a consistent trajectory of growth. January saw transactions amounting to N38.9 trillion, followed by N36.8 trillion in February. March witnessed a notable spike to N48.3 trillion, fueled by cash scarcity dynamics.
April recorded N41.3 trillion in transactions, while May saw a volume of N45.9 trillion. June experienced a slight decline to N45.3 trillion, followed by a resurgence to N47.4 trillion in July.
August and September witnessed further escalation, with values reaching N50.9 trillion and N51 trillion, respectively.
October and November maintained the upward trend, with transaction values peaking at N59 trillion and N63.6 trillion, culminating in December’s record-breaking N71.9 trillion.
At the heart of this surge lies the NIBSS Instant Payments (NIP) platform, a cornerstone of Nigeria’s financial infrastructure since its inception in 2011.
NIP remains the preferred funds transfer solution, providing instantaneous value to beneficiaries across various banking channels, including internet banking, mobile apps, USSD, POS, and ATM.
The implementation of the revised cashless policy by the Central Bank of Nigeria, coupled with ongoing technological advancements, has catalyzed the adoption of e-payment solutions nationwide.
As Nigerians increasingly gravitate towards mobile transfers, POS payments, and USSD transactions, the trajectory of e-payment growth is poised to reshape the nation’s financial landscape in the years to come.
