According to data released by the Nigeria Inter-Bank Settlement Systems (NIBSS), it revealed that E-payment transactions worth N32.84 trillion were performed in September through the NIBSS Instant payment platform.
This brings the total value of e-payment deals in the last 9 months to N271.5 trillion. The latest data released by the NIBSS revealed that the total value of transactions worth N271.56 trillion was performed electronically in nine months of 2022, an increase of 26 percent when compared to N215.76 trillion reported in nine months of 2021.
Year on year, the e-payment value increased by 39.5% compared with the N23.5 trillion recorded in September last year. There was a 1.2% decline in the figure recorded in September 2022, compared with the value of electronic payment transactions recorded in the country in August, which stood at N33.2 trillion.
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According to financial expert Mr. Rotimi Fakayejo, he attributed the decline in Instant Payment Platform (NIP) transactions in September to glitches witnessed by some banks in September, stating that the surge in the exit of IT staff, caused a lot of glitches in the banking sector that affected the activities of customers.
He also noted that the recent increase in electronic transactions reveal that Nigerians, most especially the Youths are embracing the cashless policy of the Central Bank of Nigeria (CBN) adopted in 2001 in September, to reduce the amount of physical cash in circulation.
Also the Vice President of Highcap Securities Limited, Mr. David Adnori stated that the marginal decline witnessed in electronic payment for September 2022, is because of worsening macroeconomic conditions which eroded the quantum of financial transactions by businesses and households.
He added that the rising inflation has severely affected the financial health of all economic elements, resulting in dwindling financial activities. As electronic transactions drop in September, there was also a visible decline in the value of cheque transactions as it also fell by 8.52 percent to N265.94billion from N290.69billion in August.
However, the Year-on-Year (YoY) performance of cheque transactions in nine months rose by 0.43 percent to N2.39trillion from N2.38trillion in nine months of 2021.
On the contrary, an analysis of the nine months’ data just released by NIBSS showed that the volume of cheque transactions dropped by 6.3 percent to 358.193million in September from 335.786million in August, while Year-on-year performance showed a decline of 7.6 percent to 3.07million in nine months of 2022 from 3.33million in nine months of 2021.
Cheque transactions over the years have continued to witness a decline, as most bank customers adopt the e-payment means of transactions. According to NIBSS, the value of the e-payment recorded was a reflection of the increase in the volume of deals within the month. The NIP volume rose to 438 million in September, showing a 48% increase over 296 million recorded in the same period last year.
An analysis of the 8 months of data just released by NIBSS showed that the NIP platform recorded N26.6 trillion transactions in January. Year on year, this was a 43.7% increase over N18.5 trillion recorded in the same month of last year.
According to NIBSS, over the years, Nigerian banks have exposed NIP through their various channels, that is, internet banking, bank branch, Kiosks, mobile apps, Unstructured Supplementary Service Data (USSD), POS, ATMs, etc. to their customers.