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Payments through Electronic Channels Total N18.156 trillion in Q3, Says NBS

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  • Payments through Electronic Channels Total N18.156 trillion in Q3, Says NBS

A total of 238.889 million payments valued at about N18.156 trillion were conducted through the electronic channels in the third quarter of this year, says the National Bureau of Statistics. These represented 17.75 per cent and 23.47 per cent increase in volume and value respectively over the records in the second quarter.

NBS made this disclosure in its report titled ‘Electronic Payment Channels in the Nigerian Banking Sector in Q3 2016′.

According to the statistics agency, the channels through which these payments were directed included cheques, Nigeria Electronic Funds Transfer (NEFT), automatic teller machine (ATM), point of sale (PoS), internet (web), NIBSS Instant Payment (NIP) and mobile payments.

A breakdown of the figures showed that in July, a total of 77.615 payment valued at N5.713 trillion were conducted through the electronic channels while in August and September, 82.256 million and 79.017 million payments valued at N6.922 trillion and N5.520 trillion were respectively made via the electronic channels.

Further analysis of the payment data for the third quarter showed that for cheques, 3.008 million payments valued at N1.414 trillion; NEFT-9.527 million payments valued at N5.460 trillion; ATM-157.104 million valued at N1.246 trillion; POS- 16.028 million valued at N189.947 billion; internet-3.326 million valued at N30.763 billion; mobile payments- 10.865 million valued at N223.057 billion; and NIP- 38.828 million valued at N9.591 trillion, were made.

Pursuant to its goal of ensuring financial inclusion by 2020, the Central Bank of Nigeria (CBN) has said attaining the Payment System Vision 2020 (PSV 2020) would be the catalyst to revolutionise the payment system in Nigeria. According to the CBN, achieving the PSV 2020 would help facilitate economic activities as well as boost the financial inclusion drive of the CBN.

To this end, the apex bank had in exercise of the powers conferred on it by Sections 2 (d) and 47 (2) of the CBN Act, 2007, to promote and facilitate the development of efficient and effective systems for the settlement of transactions, including the development of electronic payment systems, had issued guidelines on operations of electronic payment channels in Nigeria.

Payments through electronic channels are fast gaining traction in Nigeria. This is evident in the statistics of volume and value of transactions that have been done through the channels.

Only recently, the Head, Consumer and Digital Banking at United Bank for Africa (UBA), Mr. Yinka Adedeji, noted that, over 70 per cent of financial deposits across commercial banks, were generated from various digital channels that were driven by technology solutions. He disclosed this during an interactive session in Lagos, where he listed the digital channels to include ATM, PoS, internet banking, mobile banking, among others.

Adedeji had attributed the development to innovative solutions created by banks, which was designed to drive financial inclusion in a cashless society.

He had also noted that “less than 30 per cent of generated cash across banks, come from physical cash deposits and cheque deposits”, suggesting that the cashless initiative of the Central Bank of Nigeria was fast gaining acceptance both in urban and rural communities because of the convenience that technology innovations had brought to the banking sector.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

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Energy

In search Of Alternative Power Supply, Nigerians Spend N7T On Power Generation Annually

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Nigerians, and by extension, their businesses, expend about N7 trillion annually on power generation, the Executive Director and Chief Operating Officer, Off-Grid Tech Solutions Ltd, Stephen Ogboko has said.

Ogboko, who made this known at a virtual news conference in Lagos said that inadequate power supply had been a major challenge facing businesses in the country, forcing them to source alternative power supply for their operations.

“Nigeria is among the countries with a very high need of electricity.

“A significant amount of the economy is powered largely by small-scale generators and almost 50 percent of the population have limited or no access to the grid.

“This could be effectively tackled with the deployment of off-grid renewable energy solutions by making electricity more cost effective and environmentally friendly,” Ogboko said.

He described renewable energy from off-grid resources as sustainable and cost-effective for farmers and Small and Medium Enterprises (SMEs).

Ogboko said Off-Grid Tech Solutions Ltd. partners with the global innovators of off-grid solutions to provide reliability.

“This is cost-effective and lasting solutions to societal problems toward improving the lives of people in developing nations.

“Our team of experts have worked all over Africa, and continue to work to provide solutions to a variety of sectors.

“We have marketed and delivered smart off-grid solutions for many years, providing permanent, efficient, safe and affordable solutions,” He said.

Ogboko said that the firm specialises in the marketing of heat lamps and incubators, gas-powered air conditioners and cooling fridge, mobile power solution-solar energy box, pressure cookers, among others.

He said that notable partners of the initiative were the Federal Ministry of Agriculture and Rural Development (FMARD), United Kingdom Department for International Trade (UK-DIT), International Institute of Tropical Agriculture (IITA), All Farmers Association of Nigeria (AFAN), Buckler Group, and Tywit.

The News Agency of Nigeria (NAN) reports that off-grid renewable energy solutions support the expanding access to modern energy services in an environmentally sustainable manner.

Off-grid renewable will deliver a wide spectrum of electricity services for households, public services, and also serve commercial and industrial purposes.

Off-grid energy solutions are one of the key drivers of the nation’s push for industrialisation.

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Crude Oil

Goldman Sachs Revised Down Brent Oil Forecast for Q3 2021

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Brent crude oil - Investors King

Goldman Sachs Group, an American multinational investment bank and financial services company, has revised down its Brent oil price projection for the third quarter (Q3) of 2021 by $5 from $80 per barrel previously predicted to $75 a barrel following the surge in Delta variant COVID-19.

The investment bank predicted that the surge in Delta variant COVID-19 cases will weigh on Brent oil price in Q3 2021 even with the expected increase in demand.

However, the bank projected a stronger second half of 2021, saying OPEC+ adopted slower production ramp-up will offset 1 million barrel per day demand hit from Delta.

Goldman said, “Our oil balances are slightly tighter in 2H21 than previously, with an assumed two-month 1 mb/d demand hit from Delta more than offset by OPEC+ slower production ramp-up.”

The leading investment banks now projected a deficit of 1.5 million barrels per day in the third quarter, down from 1.9 million barrels per day previously predicted.

Therefore, Brent crude oil is expected to average $80 per barrel in the fourth quarter, a $5 increase from the $75 initially predicted and the bank sees 1.7 million barrels per day in the fourth quarter.

The oil market repricing to a higher equilibrium is far from over, with the bullish impulse shifting from the demand to the supply side,” the bank said.

Goldman added that even if vaccinations fail to curb hospitalisation rates, which could drive a longer slump to demand, the decline would be offset by lower OPEC+ and U.S. shale output given current prices.

Oil prices may continue to gyrate wildly in the coming weeks, given the uncertainties around Delta variant and the slow velocity of supply developments relative to the recent demand gains,” it said.

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Crude Oil

Oil Extends Gains on Thursday on Expectations of Tighter Supplies

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Crude Oil - Investors King

Oil prices rose about $1.50 a barrel on Thursday, extending gains made in the previous three sessions on expectations of tighter supplies through 2021 as economies recover from the coronavirus crisis.

Brent crude settled at $73.79 a barrel, up $1.56, or 2.2%, while U.S. West Texas Intermediate (WTI) settled at $71.91 a barrel, rising $1.61, or 2.3%.

“The death of demand was greatly exaggerated,” said Phil Flynn, senior analyst at Price Futures Group in Chicago. “Demand is not going away, so we’re back looking at a very tight market.”

Members of the Organization of the Petroleum Exporting Countries and other producers including Russia, collectively known as OPEC+, agreed this week on a deal to boost oil supply by 400,000 barrels per day from August to December to cool prices and meet growing demand.

But as demand was still set to outstrip supply in the second half of the year, Morgan Stanley forecast that global benchmark Brent will trade in the mid to high-$70s per barrel for the remainder of 2021.

“In the end, the global GDP (gross domestic product) recovery will likely remain on track, inventory data continues to be encouraging, our balances show tightness in H2 and we expect OPEC to remain cohesive,” it said.

Russia may start the process of banning gasoline exports next week if fuel prices on domestic exchanges stay at current levels, Energy Minister Nikolai Shulginov said, further signalling tighter oil supplies ahead.

Crude inventories in the United States, the world’s top oil consumer, rose unexpectedly by 2.1 million barrels last week to 439.7 million barrels, up for the first time since May, U.S. Energy Information Administration data showed.

Inventories at the Cushing, Oklahoma crude storage hub and delivery point for WTI, however, has plunged for six continuous weeks, and hit their lowest since January 2020 last week.

“Supplies fell further by 1.3 million barrels to the lowest level since early last year, theoretically offering support to the WTI curve,” said Jim Ritterbusch of Ritterbusch and Associates.

Gasoline and diesel demand, according to EIA figures, also jumped last week.

Barclays analysts also expected a faster-than-expected draw in global oil inventories to pre-pandemic levels, prompting the bank to raise its 2021 oil price forecast by $3 to $5 to average $69 a barrel.

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