The Nigeria Inter-Bank Settlement Systems (NIBSS) has reported a new record in electronic payment transactions, with Nigerians spending a total of N89.5 trillion through e-payment channels in July 2024. This marks the highest monthly transaction value ever recorded on the NIBSS Instant Payment (NIP) platform.
The July figure represents an 89% year-on-year increase compared to the N47.4 trillion recorded in the same period in 2023. From January to July 2024, the total value of e-payment transactions reached N566.3 trillion, almost surpassing the N600 trillion recorded for the entire year of 2023.
In terms of volume, the number of NIP transactions rose to 907 million in July 2024, a 22% increase from the 743 million transactions recorded in July 2023.
Impact of the Cashless Policy
Analysts attribute the sharp rise in e-payment transactions to the Central Bank of Nigeria’s (CBN) cashless policy, which limits the amount of cash individuals and businesses can withdraw. The policy, implemented in January 2023, restricts individuals to N500,000 in weekly withdrawals, while corporate organizations are limited to N5 million.
Financial experts suggest that these restrictions, combined with the ongoing cash shortage, have pushed more Nigerians toward electronic payments, such as mobile transfers and point-of-sale (PoS) transactions. As banks reduce cash availability, more customers are turning to cashless options for everyday transactions.
What You Should Know
The NIBSS Instant Payment (NIP) platform, introduced in 2011, provides a real-time, account-based interbank payment system. The NIP platform has been widely adopted across various banking channels, including mobile apps, ATMs, USSD codes, and PoS systems, making it the preferred method for fund transfers in Nigeria.
With the growing adoption of electronic payments, NIBSS expects e-payment activity to continue rising as more Nigerians embrace cashless alternatives in their daily transactions.
