LAGOS , Nigeria (VOICE OF Naija)–In alignment with the Central Bank of Nigeria’s (CBN) cashless policy, electronic payment transactions in Nigeria surged to N234.4 trillion in the first quarter of 2024 (Q1) as more Nigerians embraced cashless transactions.
According to data released by the Nigeria Inter-Bank Settlement System (NIBSS), this represents an 89% increase over the N123.9 trillion recorded in Q1 2023.
During the first quarter of the year, there was a consistent increase in the volume of payment transactions conducted through electronic channels offered by banks and fintech companies in Nigeria.
In January, the NIP transaction value increased to N72.1 trillion from the N71.9 trillion recorded in December 2023, and this trend continued with a further rise to N79.3 trillion in February.
In March, electronic transactions in the country reached a record high of N83 trillion.
According to NIBSS data, e-payment volume consistently increased in the first quarter.
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In January, transaction volume was 887.58 million, which rose to 905 million in February, and reached 986.6 million in March.
Industry analysts attribute this surge to the recent cash crunch experience and the cashless policy implemented by the Central Bank of Nigeria (CBN).
The revised policy, effective January 9, 2023, limits individual cash withdrawals to N500,000 per week and corporate withdrawals to N5 million per week.
The Nigeria Inter-Bank Settlement System’s (NIBSS) National Instant Payment (NIP) platform, introduced in 2011, revolutionized online inter-bank transactions.
Designed as an account-number-based solution, NIP ensures real-time fund transfers across banks, providing instant value to recipients.
Nigerian banks have integrated NIP across multiple channels, including internet banking, bank branches, kiosks, mobile apps, Unstructured Supplementary Service Data (USSD), Point of Sale (POS) terminals, and Automated Teller Machines (ATMs), expanding accessibility for customers.
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The implementation of the CBN’s revised cashless policy, alongside the March 2023 cash scarcity, has further propelled the adoption of e-payments.
With limits on daily cash withdrawals, Nigerians are increasingly embracing mobile transfers, POS payments, USSD transactions, among other digital payment methods.