Electronic payment transactions in Nigeria rose to N387 trillion in 2022, as Nigerians embrace cashless payments.
This is according to a report released by the Nigeria Inter-Bank Settlement System (NIBSS). The NBSS noted that the value recorded on the NIBSS Instant Payment (NIP) represents a 42% increase over the N272 trillion recorded in 2021.
The e-payment data showed a steady increase throughout the 12 months of 2022, with the highest value recorded in December. The reason being that it was the festive period and there were lots of spending activities.
It was recorded that Nigerians spent a total of N42 trillion over electronic channels in December 2022. The volume of transactions processed by NIBSS for the year also jumped from 3.4 billion in 2021 to 5.1 billion in 2022, which is a 50% increase.
What Prompted The Increase In Electronic Payment Transactions
The cashless policy has been in existence for quite a while now and is gaining traction. A lot of Nigerians got more used to this due to the COVID-19 pandemic as they began using mobile transfers, PoS, and USSD to settle their spending activities.
The cash withdrawal limit is also seen as a major tool in driving a surge in electronic transactions across the country.
Backstory
Recall that the Central Bank of Nigeria, (CBN), revised the cash withdrawal limits for individuals and corporate organizations last year. Both individual and corporate organizations will be able to withdraw N500,000 and N5 million, respectively.
The policy also followed the redesigning of N1,000, N5,00, and N200 notes, effective from January 9, 2023. The apex said it will also limit the amount of cash in circulation effective from January 31, when the old naira will cease to exist.
Conclusion
By limiting cash withdrawal, Nigerians will be forced to use other electronic channels for payments. The reviewed CBN cash withdrawal limit dated December 21, 2022, is contained here.
NIBSS Instant Payments: This is an account number, online real-time Inter-Bank payment solution developed in the year 2011 by NIBSS.
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