New Telegraph

Report: E-payment transactions up 9.7% to N83.72trn

Transactions through Electronic payment (e-payment) channels continue to maintain their upward trend as they rose by 9.7 per cent or N7.40 trillion to hit a new record high of N83.72 trillion in February, from N76.32 trillion recorded in January, a report by Financial Derivatives Company Limited (FDC), has shown. The report, which usually cites epayment transactions data obtained from the Nigeria Interbank Settlement System (NIBSS), stated that the total value of e-payment transactions “has been increasing steadily since July 2023.” Specifically, it said that the increase in the value of transactions in February was “supported by the utilization of electronic platforms-NIBSS Instant Payment (NIP), Nigeria Interbank Settlement System Electronic Fund Transfer (NEFT) and cheques- for payment settlements.” For instance, the report stated that NIBSS Instant Payment (NIP) transactions rose by 10 per cent to N79.33 trillion in February from N72.11 trillion in the previous month. Similarly, on the Nigeria Interbank Settlement System Electronic Fund Transfer (NEFT), the report said that transactions on this platform increased by 7.18 per cent to N3.28 trillion in February from N3.06 trillion in January. Equally, the report shows that the value of cheque transactions rose by 5.33 per cent to N304.14 billion in February from N288.75 billion in the previous month. However, according to the report, the value of transactions through Point Of Sale (POS) terminals dropped for the second consecutive month, falling 5.3 per cent to N805.05 billion in February from N850.09 billion in January.

It attributed this decline to “higher charges via the e-payment platform.” Analysts note that apart from the Central Bank of Nigeria’s (CBN) initiatives to promote the cashless policy, which it introduced in 2012, factors such as the impact of the 2020 Covid-19 crisis as well as the apex bank’s naira redesign programme, have accelerated the digitilisation of payments in the country in recent years. For example, in its report titled, “Instant Payments – 2020 Annual Statistics”, the NIBSS stated: “Covid-19 changed the e-payments landscape, accelerating the adoption of instant payments as more people transitioned to electronic channels for funds exchange in the wake of governmentimposed lockdowns.” In the same vein, the naira redesign policy, announced by the CBN on October 26, 2022, saw the apex bank introducing new designs of the N200, N500 and N1,000 denominations and initially setting a January 31st 2023 deadline when the old banknotes would cease to be legal tender.


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