Data obtained from the Nigeria Inter-Bank Settlement System shows that the total value of electronic transactions processed under the NIBSS Instant Payments platform returned to a normal growth path in July 2024 to print at N89.5 trillion, after a brief moderation in the prior month.
This impressive growth can be attributed to the robust expansion of Nigeria’s electronic transaction platforms, along with the increasing adoption of mobile telephony services across the country.
In the review month, the value of recorded transactions rose by 12 percent month-on-month, from N79.6 trillion in June 2024, and 88.9 percent year-on-year to N89.5 trillion, up from N47.4 trillion in July 2023. Cumulatively, the total value of transactions processed electronically through the NIP platform between January and July 2024 saw a remarkable increase of 86.4 percent year-on-year, reaching N566.4 trillion, up from N303.8 trillion in the same period last year.
Nigeria’s electronic payment ecosystem has experienced significant expansion in recent years, driven by several factors, with the Central Bank of Nigeria playing a pivotal role through policy initiatives such as the adoption of a cashless policy.
This is evidenced by the substantial surge in the total value and volume of payment transactions. Notably, Nigeria’s E-payment landscape is experiencing steady growth, as businesses and individuals enthusiastically embrace digital channels.
According to data from the NIBSS platform, transactions through mobile money channels grew by 63 percent year-on-year to N6.23 trillion in July 2024, up from N3.82 trillion, and also recorded a 9.7 percent month-on-month increase from N5.7 trillion in June 2024.
Meanwhile, all payments processed through the Point-of-Sale (PoS) channel saw increases of 8.02 percent month-on-month and 8.89 percent year-on-year, reaching N1.01 trillion at the close of July 2024.
In addition, the NIBSS Instant Payments channel recorded an impressive transaction volume of 907 million, marking a 4.1 percent month-on-month increase from 872 million and a 22 percent year-on-year surge from 743 million in the same period last year.
The E-bills payment platform, commonly used for bill payments, rose by 4.6 percent month-on-month to N239 billion, and on a year-on-year basis, the value of transactions increased by 7.46 percent, up from N137 billion.
Cheque payments also rose by 30 percent month-on-month and 16.87 percent year-on-year to about N294 billion, indicating that some individuals and corporates still prefer cheque transactions.
“We note the positive growth in electronic payment channels during the review period, highlighting the convergence of technological advancements, a thriving e-commerce sector, an expanding population, increasing internet and smartphone penetration, and the CBN’s steadfast commitment to achieving 70 percent financial inclusion among underserved individuals in Nigeria. This has paved the way for remarkable growth in electronic payment channels.
“This trajectory, combined with the ongoing expansion of e-commerce, positions Nigeria on the brink of an era dominated by sophisticated digital payment methods. We expect that the CBN’s continued efforts towards a cashless society and the growing emergence of fintech companies will further drive the widespread adoption of electronic payments in Nigeria,” the NIBSS said.
