Discover the latest data from the Nigeria Inter-Bank Settlement System (NIBSS) revealing a significant surge in e-payment transactions in Nigeria, reaching a record-breaking N600 trillion in 2023. Explore the factors driving this growth and the impact of cashless payments on the Nigerian economy.
In a groundbreaking development, electronic payment transactions in Nigeria witnessed an unprecedented surge, reaching a staggering N600 trillion in 2023.. This remarkable milestone, as reported by the Nigeria Inter-Bank Settlement System (NIBSS), showcases the increasing adoption of cashless payment methods among Nigerians. Let’s delve into the key insights and factors driving this exponential growth.
Factors Driving the Surge in E-Payment Transactions:
1. Festive Season Boost: The festive period in December 2023 witnessed a surge in commercial activities and spending, leading to a substantial increase in e-payment transactions. Nigerians relied heavily on cashless means due to the unavailability of Naira notes, resulting in transactions worth over N70 trillion during this period, compared to around N40 trillion in 2022.
2. Growing Acceptance of Cashless Payments: The NIBSS data reveals a steady increase in e-payment transactions throughout the year, indicating a growing acceptance of cashless payments among Nigerians. This shift towards digital transactions is driven by factors such as convenience, security, and the increasing availability of electronic payment channels.
3. Increased Utilization of Electronic Payment Channels: Nigerian banks have been actively promoting the use of electronic payment channels, including internet banking, mobile apps, POS, and ATMs, among others. This concerted effort has resulted in a significant increase in the utilization of these channels, with electronic payment channels being utilized 11.05 billion times in 2023, marking a remarkable 75.96 percent increase from 2022.
4. Cash Scarcity and Electronic Transaction Adoption: In March 2023, Nigeria experienced a period of cash scarcity, compelling individuals to resort to electronic transactions. This led to a surge in e-payment volume, peaking at an all-time high of 1.1 billion transactions. Although the value of transactions in March was not as high as in December, it highlights the growing reliance on cashless payment methods during challenging times.
The exponential growth in e-payment transactions has significant implications for the Nigerian economy. Some key impacts include:
1. Enhanced Financial Inclusion: The widespread adoption of cashless payment methods promotes financial inclusion by providing access to financial services for previously underserved populations. This empowers individuals and businesses, fostering economic growth and development.
2. Increased Efficiency and Transparency: Cashless transactions offer greater efficiency and transparency in financial transactions, reducing the risks associated with cash handling and promoting accountability. This contributes to a more robust and resilient financial ecosystem.
3. Boost to Digital Economy: The surge in e-payment transactions reflects the growing digital economy in Nigeria.. As more Nigerians embrace cashless payments, it creates opportunities for digital businesses, fintech startups, and innovation in the financial sector.