New Telegraph

Value Of E-payments Rises To N92.8trn After One Month Decline

…surge attributed to Muslim festival

Preparations by Islamic faithful for their annual festival have impacted substantially on electronic payment transactions across board.

The sudden peak experienced in the month of May after a noticeable decline in April has been partly linked to the festival coming up next Sunday.

According to details released by the Nigeria Interbank Settlement System (NIBSS), transactions through the channels by 16.23 per cent, or N12.96 trillion, to N92.80 trillion in May 2024 from N79.85 trillion recorded in the previous month.

A further breakdown revealed that NIBSS Instant Payment (NIP) transactions rose by 16.15 per cent to N87.48 trillion in May from N75.32 trillion in April.

Similarly, transactions through Nigeria Interbank Settlement System Electronic Fund Transfer (NEFT) increased by 20.98 per cent to N4.14 trillion in May from N3.42 trillion in the previous month.

Analysing the report, analysts at Financial Derivatives Company Limited (FDC), who cited the data from said NIBSS, said that the increase in the value of e-payment transactions during the period, “reflects increased spending ahead of the Muslim celebration in June,” adding that the increase was also supported by the convenience and speed of digital payment channels.”

It said the aforementioned reasons are likely to also push up the total value of transactions this month. According to the report, the value of transactions through Point Of Sale (POS) terminals, also headed north last month as it rose by 7.01 per cent to N868.66 billion last month compared to N811.77 billion in April.

The value of cheque transactions equally headed north last month, as it increased by 6.32 per cent to N308.72 billion from N290.36 billion in April.

Further analysis of the data shows that after its decline in April, total value of e-payment transactions has resumed its upward trend in May.

The value of transactions recorded a steady increase in the first three months of the year. Interestingly, in an earlier report, FDC had noted that the total value of e-payment transactions “has been increasing steadily since July 2023.”

Analysts believe that factors driving digital payment adoption in the country, in recent years, include the Central Bank of Nigeria’s (CBN) initiatives to promote the cashless policy, the impact of the 2020 Covid-19 crisis and the apex bank’s naira redesign programme.

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