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Monthly Cheque Transactions Decline to N489bn

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A steady decline in the traditional cheque transaction may push the growth of mobile money in the country, a new report has shown.

There have been general declines in monthly cheque transactions in the country since 2016, sliding from N501.166bn in the month of February to N488.627bn in June.

A report from the Nigerian Interbank Settlement System on Sunday showed that cheque transactions worth of N464.553bn were carried out in January; N501.166bn in February; and N487.572bn in March, ending the first quarter.

In the second quarter of the year, spanning April, May and June, cheque transactions worth N472.465bn, N480.409bn and N488.627bn, were respectively executed.

In terms of volume of transactions, the NIBSS’ report indicated that while the total number of deals stood at 6,407,507 in 2015, only 5,731,805 units of transactions were recorded in 2016.

Going by the details of the data, what this means is a decline in the volume of transaction by 675,702 this year, when compared with what was transacted last year.

However, the report stated that Nigerians were moving away from traditional cheque transaction to a more convenient electronic means of carrying out financial exchanges, “as the value of half-year cheque transactions in 2016 dropped by more than 10 per cent.”

According to the NIBSS, the decline compares with the value of transaction during the same period last year, where more cheque transaction took place.

It stated in its report that from a total of N3.194tn cheque issuance value in the first half of last year, the figure crashed to N2.894tn during the same period this year.

From the report, the N300bn transaction difference represents about 10.36 per cent decline in cheque transactions this year.

A further analysis of the report showed that in January, February and March last year, the cheque issuance value stood at N541.062bn, N548.116bn and N565.138bn, respectively.

In April, the transaction value was N510.442bn; N487.937bn in May; and in June 2015, the figure stood at N542.08bn.

Meanwhile, the NIBSS stated that the steady move by Nigerians from traditional cheque transactions to electronic transactions might have positively impacted on the growth of mobile money.

In its fact sheet, it stated that the total number of customers on mobile money operations had risen to 29.13 million.

The report showed that the total number of agents enrolled at the end of the first quarter of 2016 (March) was 106,636; transaction volume within the quarter was at 14.09 million, while transactions value averaged N0.14tn.

From the document, the Central Bank of Nigeria has so far licensed 21 mobile money operators, with all of them already integrated to the NIBSS platform for interoperability.

It also indicated that Nigerian banks had issued over 24 million Bank Verification Numbers to their customers as of March ending, this year.

The report stated that while over 30.1 million account holders had enrolled for the BVN, only 24 million had received their verification numbers.

The number of enrolled bank customers thus represents about 34.7 per cent of the total 86.5 million bank accounts opened by government, corporate and individuals with various banks in the country.

“The purpose of the project is to use biometric information as a means of first identifying and verifying all individuals that have account(s) in any Nigerian bank and consequently, as a means of authenticating customer’s identity at point of transactions,” the Executive Director, Technology and Operations, NIBSS, Mr. Niyi Ajao, said.

“The BVN exercise will also provide a uniform industrially accepted unique identity for bank customers, to authenticate transactions without the use of cards, using only biometric features and Personal Identity Number identification of blacklisted customers,” Ajao added.

According to the NIBSS, starting from January 2015, 2.2 million accounts were enrolled; 2.7 million in February; 3.3 million in March; and by April, May and June, the figures increased to 7.7 million; 9.2 million and 12.4 million, respectively.

In July, August and September, the figure rose to 12.7 million; 13.7 million and 14. 5 million accounts, respectively.

The report added that in the last quarter of the year, 16.3 million accounts were enrolled in October; 21.2 million in November; and in December, the figure stood at 28.2 million.

In the first quarter of this year, the number of enrolled bank accounts for the BVN further increased to well over 32.1 million.

The data also revealed that the number of bank accounts opened with different banks in the country so far had reached 86.5 million.

The number of accounts opened so far in the country had increased from 75 million in January last year to 85 million by the end of December last year, it stated.

It also said the number of bank accounts residing with various banks in January this year rose to 86.5 million.

A further analysis of the bank accounts data, however, showed that the total active accounts in the country dropped from 59 million last December to 58.5 million at the end of January this year.

This means only 67 per cent of the total bank accounts opened in the country are active while 33 per cent are redundant.

Also, as of January this year, 59.7 million bank accounts were savings accounts; 23.4 million were current accounts; while other forms of accounts such as domiciliary, fixed deposit totalled 3.3 million.

Despite the number of inactive accounts, most account holders significantly used various electronic payment platforms for transaction in 2015.

According to the NIBSS Electronic Fact Sheet for the Year 2015, over N35.5tn transactions were carried out on various electronic payment platforms.

The transactions were carried out through the Nationwide Cheque Truncations Services platform, the NIBSS Instant Pay, the Electronic Bills Payment, Point of Sales, Automated Teller Machines and mobile money operators.

The NIBSS report showed that the number of the ATM cards so far issued by commercial banks in Nigeria had hit 41.89 million.

These include the Chip and PIN ATM card brands from indigenous Verve, MasterCard and Visa.

Following the report, “the country recorded a total number of the ATMs as of March 2016 stood at 16,660; the total number of active cards, 41.89 million; while the volume and value of the ATM transactions between January and March, 2016 stood at N0.12bn and N1.07tn, respectively.”

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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FG Installs And Commissions N8 Billion Cargo Scanners at Lagos Port

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Lekki Deep Seaport

The federal government has finally put the N8 billion non-intrusive inspection (NII) equipment, also known as cargo scanners, at the Apapa Port complex after receiving widespread condemnation and criticism for continuing 100% cargo examination despite the purchase of cargo scanners.

The Nigerian Customs Service (NCS) officers are suspected of sabotaging the scanners, which have been abandoned at the country’s seaports for more than a year. Yesterday, the scanners were officially launched by Mrs. Zainab Ahmed, minister of finance, budget, and national planning.

Speaking at the commissioning of the three new scanners, Ahmed thanked the Federal Executive Council (FEC) for approving the purchase, installation, and training of 120 service officers as well as the approval of the scanners.

However, she asserted that the project would undoubtedly help the NCS carry out its mandates, in keeping with the Administration led by President Muhammadu Buhari‘s top priorities of eradicating poverty and fostering favorable macroeconomic conditions for long-term growth and development.

She asserts that the scanner has the ability to find illegal imports concealed in cargoes and that it allows for the scanning of more cargoes while achieving the desired efficiency and effectiveness in the cargo examination procedures.

“The commissioning of these three non-intrusive scanners is in line with efforts to expedite Customs operations and achieve its mandate of ease of doing business, trade facilitation and preventing port congestion.”

“These three scanners will help increase revenue for government and improve national security. It will also help enhance the remote audit trail of goods within the port system,” she said.

She implored the Nigerian Ports Authority (NPA), port terminal operators and all stakeholders in the port to cooperate with NCS to take full advantage of the scanners, saying the equipment have the capacity to process up to 500 containers in a day.

Earlier, the Comptroller General Customs, Col. Hameed Ali (Rtd), explained that the scanners commissioned were an intervention pending the start of the Customs modernisation project, which will deploy 135 scanners.

Ali stated that by 2023, scanners would be installed throughout Nigeria as part of the current administration’s reform strategy.

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Nigeria, China to Collaborate on Movie Production

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The Chinese Ambassador to Nigeria, Cui Jinachun, has called for a collaboration between the Nigerian movie industry and China film industry.

The Chinese Ambassador who made the statement at the opening of the Fourth Asian Film Festival and movie screening in Abuja noted that such would promote harmony, peace and unity between both countries. 

According to the ambassador, Nigeria is important to Africa and the Nollywood movie industry had taken the lead with a huge potential of driving a movie partnership between Africa and Asia. 

Investors King understands that this is not the first time both countries will call for such collaboration. 

Envoys from both countries have hinted at a possible collaboration in that regard. 

In July 2022, the Nigerian Consul General in China, H. E. Chimezie Okeoma Ogu sought a partnership between the Federal Government of Nigeria and the government of the People’s Republic of China in the areas of film production. 

Chimezie positioned that such collaboration will not only enhance the relationship, it will also give room to knowledge transfer and provision of hi-tech resolution equipment in the African entertainment industry. 

The Consular added that Nigeria stands to benefit a lot from the partnership noting that the movie industry in Nigeria is rated as the third-largest globally, accounting for five percent of Nigeria’s Gross Domestic Product, (GDP). 

Similarly, speaking during the opening of the Fourth Asian Film Festival and movie screening yesterday, the Chinese Ambassador also reiterated the benefits of the partnership. 

“You know in Asia we have 47 countries, in the African continent we have 54 countries, so we can work together to produce films for the harmony of the people, society and the nations,” he said. 

Speaking further, he added that Nigeria can take the lead owing to the large nature of the Nollywood industry. 

“Nigeria particularly leads in producing in the film industry, so I think this kind of factor will give a big push and big momentum to develop Nollywood” he concluded. 

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SPAR Nigeria Begins Black Friday Sales

SPAR to begin Black Friday sales on Friday, November 25, 2022

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SPAR Market, Nigeria’s leading supermarket and department store, has announced that its annual Black Friday Sales will begin on Friday, November 25, 2022. 

The company said in a statement that it expects this to be one of its biggest Black Friday events ever, thanks to the appointment of Nollywood actress Toyin Abraham as its Black Friday ambassador.

“This year, SPAR offers massive offers up to 70% off in electronics, home appliances, mobile phones, computers, wines and spirits, groceries, clothing, watches, furniture, and more,” it said.

“Spar market has also organised several engaging games for their customers to win amazing prizes at all their stores nationwide.”

The SPAR license for Nigeria was granted to the Artee Group, a leading retail operator in Lagos, in 2009.  SPAR’s presence in Nigeria has grown steadily over the years. The partner assessed the market potential and developed the brand through a combination of new build and conversion stores, establishing brand recognition among shoppers and local entrepreneurs capable of supplying local products to this organized retail network.

SPAR is the world’s largest voluntary food retail chain. The company began with a single Dutch store in 1932 and has since expanded to over 13,600 locations in 48 countries across four continents.  SPAR’s growth has been supported by a set of values that have guided the organization since its inception 90 years ago. At the heart of these core values is the commitment of SPAR independent entrepreneurs to collaborate in all areas of wholesale and retail to ensure we serve our local communities with passion while being authentic in everything we do.

The story of SPAR in its early years is the story of its founder, Adriaan van Well, an innovative Dutch wholesaler with a clear vision for SPAR’s future. He was inspired by a simple yet powerful philosophy based on the concept of voluntary retailing: independent wholesalers and retailers can achieve more by working together than by working alone. SPAR’s philosophy today is based on the vision of benefiting from collaboration by pooling resources and scale.

Investors King will keep you updated on future Black Friday sales. 

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