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The Nigeria Inter-Bank Settlement Systems (NIBSS) has reported that Nigerians conducted electronic transactions worth N89.5 trillion in July 2024, setting a new record for the highest monthly transaction value on the NIBSS Instant Payment (NIP) platform.
This figure reflects an 89% increase compared to N47.4 trillion in July 2023. With this surge, the total value of e-payments between January and July 2024 reached N566.3 trillion, nearly matching the N600 trillion recorded for the entire year of 2023, with five months still remaining.
In terms of transaction volume, NIP transactions rose from 743 million in July 2023 to 907 million in July 2024, representing a 22% year-on-year growth.
Impact of the CBN’s Cashless Policy
The rise in e-payment activity is largely attributed to the Central Bank of Nigeria’s (CBN) cashless policy and the recent cash shortages in the economy. Implemented on January 9, 2023, the policy limits weekly cash withdrawals to N500,000 for individuals and N5 million for corporate entities.
A Lagos-based financial analyst, Mr. Adewale Adeoye, explained that the reduced availability of cash in banks has driven more Nigerians to embrace electronic payment methods. “As cash becomes scarcer, many people turn to Point of Sale (PoS) operators, using cards or mobile transfers to access cash,” Adeoye noted.
With over-the-counter withdrawals capped at N5,000 and ATMs frequently running out of cash, an increasing number of Nigerians are relying on mobile transfers and PoS services. Adeoye further emphasized that this trend of rising electronic transactions is expected to persist as banks continue to limit cash availability.
The continued growth in e-payments signals a broader shift in Nigeria’s financial landscape, with digital transactions playing an increasingly vital role in daily economic activities.
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