Nigeria Interbank Settlement System (NIBSS) reported a N572 trillion cashless boom due to an increase in electronic instant transfers in the country, resulting in a decline in point of sale (POS) transactions.

On Thursday, 26th of August, 2024, NIBSS revealed that electronic instant transfer has increased by 84.37 percent to the N572.63 trillion reported in the first seven months of 2024.

In 2023, NIBSS reported that cashless payments had risen by 55 percent to N600 trillion cashless transactions from N387 trillion in 2022.

The statistics were based on NIBSS cashless transactions tracking across instant payments and PoS channels which recorded N10.73 trillion as the total value of point of sale (PoS) transactions for 2023, compared to N8.39 trillion recorded in 2022.

It was also reported that a 58 percent increase in smartphone penetration in urban areas as of 2022 made mobile applications the preferred method for conducting transactions, driving online transfers, and relegating ATM transactions and PoS usage.

“Everyone accepts transfers now, even people that sell in traffic,” said Temiloluwa Lawal, a tech expert.

“Even Keke drivers are accepting transfers,” Daniel Ishie, a mobile money agent, added.

Although, PoS transactions, had been a leading force when the Central Bank of Nigeria (CBN) introduced its Naira redesign policy and withdrawal limits in 2022. Yet, there was an 8.19 percent decline to N6.23 trillion over the same period.

However, as of July 2024, there is an 802.93 percent to 4.06 million increase in the number of registered PoS terminals from 449,998 in January 2020.

According to the 2024 Nigerian Payments Report, “POS transactions play a pivotal role in providing enhanced convenience, speed, and security, contributing to the ongoing transformative shift towards heightened adoption of cashless transactions in Nigeria.”

“It is evident that the tremendous growth of Mobile App Transfers, Online Transfers, MMOs, and the NIP together paint a clear picture that Nigeria’s payment system is becoming much more cashless and much more dependent,” Zone remarked.

The Centre for the Promotion of Private Enterprise (CPPE) has warned the Central Bank of Nigeria (CBN) and its Monetary Policy Committee of the dangers of further interest rate hikes on Nigerians.

While the CBN’s Monetary Policy Committee has yet to decide on a possible interest rate hike, CPPE Executive Director, Dr. Muda Yusuf, has urged the apex bank to refrain from raising the country’s interest rates.

During an interview monitored by Investors King on Monday, Yusuf revealed that any further increase in interest rates would do more harm than good for investors.

Also, the CPPE director noted that debtors in the country would face significant consequences if interest rates were to increase further.

The outcome of the MPC’s decision will be known on Tuesday, following the conclusion of its 297th meeting.

However, Yusuf remains optimistic, especially since inflation is gradually declining, although the prices of goods have yet to fall.

According to him, “We expect a pause in interest rate hikes. At least inflation is dropping, although prices in the market are still high.

“We don’t expect the CBN to raise interest rates further. If they do, it will cause more harm to investors in the country.

“Those who want to borrow money or have already borrowed money will be the ones to suffer from another rate hike.

“We expect a pause in interest rate hikes so that we can assess how far fiscal policy measures can go in reducing inflation,” Yusuf added.

Following the flood that rendered over 4.4 million people homeless in six African nations, the European Union (EU) has announced €5.4 million in humanitarian aid to support verified victims.

This was confirmed in a statement made available to the press on Monday, September 23, 2024.

The beneficiary countries include Chad, Niger, Nigeria, Cameroon, Mali, and Burkina Faso.

According to the union, the sum is to help the most affected populations in the listed nations.

“The European Union has released €5.4 million in humanitarian aid to help the most affected populations in the aftermath of the devastating floods in Chad, Niger, Nigeria, Cameroon, Mali and Burkina Faso”, the statement reads.

“The funding will support humanitarian partners in providing immediate aid, addressing urgent needs such as food, shelter, access to clean water, sanitation, and other essential services in the most affected areas.”

“The amount will be distributed as follows: Chad €1,000,000; Niger €1,350,000; Nigeria €1,100,000; Mali € 1,000,000; Cameroon €650,000 Burkina Faso €300,000.”

“The funding comes in addition to €232 million in humanitarian assistance already allocated to these countries so far this year,” the EU added.

The EU Commissioner for Crisis Management, Janez Lenarčič, lamented the increased rainfall in the Sahel and Lake Chad regions.

The commissioner who revealed that the recent flooding has displaced millions and caused widespread suffering noted that the EU is mobilising all means at its disposal to help the most vulnerable.

According to the commissioner, “Excessive rainfall has lashed the Sahel and Lake Chad regions with unprecedented impact, displacing millions and causing widespread suffering and damage.

“We are mobilising all means at our disposal to help the most vulnerable in the flood-stricken countries, so they can receive much-needed relief.”