Nigeria’s Electronic Payments Hit N40.48trn in Q2, 2019

• Nigeria’s Electronic Payments Hit N40.48trn in Q2, 2019

The total transactions performed through the Nigerian Electronic Payment Channels in the second quarter (Q2) of 2019 rose to 711,299,990, the National Bureau of Statistics (NBS) stated.

The report shows NIBSS Instant Payments (NIP) dominated most of the transactions carried out in the quarter with a total volume of 271,344,549 valued at N25.18 trillion.

Breaking down the number, total transactions of 87,941,859 worth N8.28 trillion were performed in April, while May saw an increase to 95,980,494 valued at N9.04 trillion.

In June, the number declined to 87,422,196 worth N7.87 trillion, the lowest in the quarter.

POS, ATM, Mobile payments and Cheques transactions stood at 103,933,015, 221,659,945, 63,300,927 and 1,948,128 valued at N749.8 billion, N1.69 trillion, N1.15 trillion and N1.1 trillion, respectively.

While a total of 27,594,789 transactions valued at N116.27 billion were performed through web applications.

Payment through m-Cash was the lowest among the channels surveyed in the quarter with a total transaction volume of 60,493 worth N197 million.

Similarly, transactions carried out through Ebillspay, Remita, NAPs and Central Pay were 300,117 valued at N139.9 billion; 11,041,806 worth N4.87 trillion; 9,950,428 estimated at N5.4 trillion and 165,793 valued at N1.2 billion, respectively.

The volume of transactions performed through these channels is expected to surge in the fourth quarter of 2019 following the new Central Bank of Nigeria‘s regulation that mandated all persons and businesses to use electronic channels or pay transaction fees.

The apex bank had said electronic payments enhance transparency and support the bank’s cashless policy currently being pushed.

Stakeholders, however, fault the central bank directive, saying it would saddle Deposit Money Banks with more responsibility as customers would start working within CBN’s limits and withdraw or deposit multiple times when using the banking hall.

Others said it would discourage broader participation in the financial system as the majority of bankable adults outside the banking system are those unfamiliar with financial technologies.

The CBN plans to boost the number of bank customers from the current 38 million to 100 million in five years under its new financial inclusion program.