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The Central Bank of Nigeria (CBN) has revealed a 19% decline in Point-of-Sale (PoS) transactions in Nigeria during the first quarter (Q1) of 2024, according to its recent report.
Although there was an initial surge in January, PoS transaction volumes saw a decline in both February and March. January 2024 witnessed a rise in transaction volumes to 112.78 million, up from 96.35 million in the same period last year. However, in February 2024, the volume dropped to 97.57 million from 113.53 million recorded in February 2023. The trend continued in March, with volumes decreasing to 103.65 million, down from 177.93 million in March 2023.
Throughout the first quarter of 2024, total transactions amounted to 314 million, marking a significant decrease of 73.81 million compared to the same period in 2023. The initial surge in cashless transactions, particularly through PoS systems, was driven by the scarcity of cash as people sought alternatives for their daily transactions.
However, the recent decline in PoS usage suggests a potential shift away from the cashless trend, indicating stabilization from the previous year’s cash shortage or the emergence of new consumer transaction patterns.
Despite the decrease in PoS transactions, the CBN reported a significant surge in cash held outside the banking system. In January 2024, cash outside banks rose to N3.28 trillion, marking a 314% increase from N792.18 billion in January 2023. This trend continued in February, with the amount reaching N3.411 trillion, representing a 305% increase from February 2023’s N843.31 billion.
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