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.
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.”
Akinwumi Adesina Lauds Dangote Commitment to Africa’s Growth After Visiting Dangote Refinery
The President of the African Development Bank Group, AKinwumi Adesina has lauded Aliko Dangote’s dedication to Africa’s growth.
Akinwumi, who was on a visit to Dangote Refinery with his wife, said the $16 billion investment is the largest single-train refinery in the world. He described the petrochemical industrial site as a game-changer for Nigeria and the entire Africa.
“I was delighted to visit Dangote’s incredible world-class refinery and petrochemical plant with my wife Grace, with @AlikoDangote and @realFemiOtedola. The power of vision. Whenever the two billionaires get together they do great things! Nigeria is proud of them,” Mr. Akinwumi stated via his official Twitter handle @akin_adesina.
“I was very impressed with Dangote’s refinery and petrochemical industrial zone. A $16 billion investment. The largest single-train refinery in the world. It shows Africa’s power to industrialise. A game-changer for Nigeria & Africa. Well done @AlikoDangote! I am proud of you.”
On Monday, Investors King reported that Dangote Refinery has perfected plans to start processing as much as 540,000 barrels of oil per day in the third quarter of 2022.
The refinery has a processing capacity of 650,000 barrels per day. However, it is kick-starting operations with 540,000 barrels per day while the Refinery is expected to generate 400MW, an equivalent of Ibadan Electric Distribution Company (IBEDC).
FG Has Empowered 4million Businesses With N150bn in Five Years– Osinbajo
The Federal Government of Nigeria, in the last five years, has disbursed N150 billion to boost four million businesses across the country.
The business empowerment was done through the federal government schemes set up for micro, small and medium enterprises (MSMEs), Vice-president Yemi Osinbajo says.
Osinbajo stated this on Monday, in a statement issued by his Spokesperson, Laolu Akande while delivering his keynote speech at the Bank of Industry (BOI) ‘Aid for Productivity Report’ launch.
He noted that the support for the MSMEs sector amounts to 50% of Nigeria’s GDP and 76% of the country’s labour force.
The vice-president pointed out that the sector attained success due to the diligence and commitment of Nigerians which he described as ‘the Nigerian can-do spirit and the entrepreneurial DNA we carry.’
Impressed with the results derived, Osinbajo commended the youths who took advantage of the MSMEs schemes to grow their business.
“This is a shining case study of what President Muhammadu Buhari strongly believes– that Nigerians will solve Nigeria’s problems.
“This is an example of what we can achieve when we unleash the best of our people, especially our young, on the toughest of our challenges and give them the free-hand to deliver results.
“What might also not be obvious is the sheer scale of impact that has been achieved with these programmes, as over four million Micro, Small and Medium Enterprises have been direct beneficiaries of the over N150 billion deployed in the past five years,” he said.
Disclosing the statistics of the beneficiaries, Osinbajo said 57% of the businesses are owned by Nigerians below 35 years, and 60% of the beneficiaries are women.
He added that the team of Nigerian professionals solidly backing the work are youths with an average age of 28 years.
Osinbajo, who had earlier visited Kaduna and conversed with a Tradermoni scheme beneficiary during its launch in the state, expressed satisfaction on the impact of the scheme.
He said the beneficiary, Jafar Abubakar who sells ginger and garlic was one of the 5,000 traders who got ₦10,000 to improve his business.
“This is perhaps for me one of the most satisfying things about the way our social intervention schemes are deployed. That there is a platform that can process applications from potential beneficiaries, payout credits or other benefits, and maintain auditable records seamlessly. It is those people and infrastructure that make this happen that we are celebrating today.”
The vice president hinted that the idea was birthed 6 years ago with the aim of building systems that will serve the population fairly and justly, bringing credibility to government programmes.
He, however, mentioned that one of the hindrances encountered was directly reaching the people, to capture and digitize their bio-data as well as get their benefits across to them directly in a transparent way.
Osinbajo lauded the infrastructure and transparency behind the BOI Growth schemes.
He also commended Toyin Adeniji, executive director of BOI and Uzoma Nwagba, the chief operating officer; the co-authors of the ‘Aid for Productivity’ report presented at the launch.
SEC Gives Dangote Cement Waiver to File AFS Within 60 Days of Year-End
Dangote Cement Plc has received approval from the Securities and Exchange Commission (SEC) not to file its fourth-quarter unaudited returns within thirty days of its period end.
The company disclosed in a statement signed by Edward Imoedemhe, Deputy Company Secretary.
However, the company must file its annual audited financial statements within sixty days of its year-end.
Dangote Cement, therefore, announced that it will file its Audited Financial Statements for the period ended December 31, 2021, on or before February 28, 2022.
The statement reads “Dangote Cement Plc (“DCP”) hereby announces that further to its request for a waiver, the Securities and Exchange Commission has granted approval for DCP not to file its Fourth Quarter Unaudited Returns within thirty days of its period end, but to file its Annual Audited Financial Statements within sixty days of its year end.
“In view of this, DCP will file its Audited Financial Statements for the year ended December 31 2021, on or before February 28 2022.”
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