E-Transactions hit N56.46tr in 9 months
Five years on after Nigeria’s Central Bank (CBN) launched its Cash-less Nigeria project to reduce the amount of physical cash circulating in the economy, payments through electronic channels are fast gaining traction in Nigeria.
The total value of electronic payment transactions in just 9 months from January to September this year, has already hit N56.46 trillion compared to the total transaction in the 12 months of last year at N56.88 trillion according to data from Nigeria Inter-Bank Settlement System (NIBSS).
The channels through which these payments were directed included cheques, Nigeria Electronic Funds Transfer (NEFT), automatic teller machine (ATM), point of sale (PoS), internet (web), NIBSS Instant Payment (NIP) and mobile payments.
Citing central bank NIBSS revealed that ATM dominated the volume of transactions at N560.86 Million valued at 4.61 trillion marginally lower to 607 Million volumes and 4.9 trillion values recorded in the whole of 2016.
Total volume of cheque transaction stood at 8.13 Million valued at N 4.09 trillion in the 9 months.
The volume of mobile payment within the period stood at 35.53 Million, valued at N795.18 billion exceeding the value reached last year at 756 billion.
Transactions on Point of Sale (PoS) terminal valued at N975 billion already exceeded 759 Billion recorded in 2016 while web payment transactions for the year under review put at N129.24 billion is expected to exceed the N132.36 billion recorded last year.
CBN had hope its cash-less policy will help reduce the “negative consequences” of frequent use of cash serving as a catalyst to revolutionise the payment system in Nigeria.
Payments through electronic channels are fast gaining traction in Nigeria. This is evident in the statistics of volume and value of transactions that have been done through the channels.
Meanwhile, the total number of dormant bank accounts in Nigeria rose to 39 million in September despite efforts by banks in the country to retain old customers and attract new ones, representing the highest figure in Africa.
The accounts, activated by commercial banks for new holders but later abandoned to dormancy by the customers now constitute 38.56 per cent of the total 99 million activated bank accounts reached in the country as of September 2017.
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