Naira Crises Sends Mobile Banking Surging to N2.37 Trillion in January

• The volume of mobile transactions in Nigeria surged by 125 per cent in January
• The increased mobile transactions resulted in about N2.37 trillion in mobile transactions in January alone
• CBN's withdrawal limits aided the increased volume of mobile transactions, leading to cash scarcity

Transactions via mobile in Nigeria surged to N2.37 trillion in January 2023, representing a whopping 125 per cent increase compared to the same period the year before as Nigerians resorted to mobile banking amid a cash crunch.

This data was disclosed by the central switch, Nigeria Interbank Settlement System (NIBSS).

Withdrawal limit, new naira notes push mobile transactions up

Additionally, the volume of mobile transactions in Nigeria rose by 55 per cent year-on-year to 108.1 million in disparity to 32.6 million transactions recorded in January 2022.

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Naira scarcity: Banks, PoS operators, cash out big as Nigerians transact N39.5tn electronically in one Month

Recently, Nigerians have endured a massive cash crunch which has slowed economic activities in Africa's largest economy.

Analysts believe the CBN's withdrawal limits caused the surge after introducing new naira notes in December 2022.

Nigerians have formed long queues at ATMs, and others keep vigil to lay hands on few naira notes as cash scarcity bites hard in the country.

The crisis has pushed Nigerians into the waiting arms of PoS operators who have turned shylock as mobile banking platforms collapse.

The operators have hiked their charges by more than 30 per cent above the 2 per cent approved by CBN.

Bank platforms collapse amid huge transaction volumes

However, the weight of transactions has put enormous pressure on the banking infrastructure, with many collapsing while Nigerians try to perform transactions.

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The NIBSS report says that NIBSS Instant Payments (NIP) increased by 46 percent to N38.77 trillion in January, from N26.67 trillion recorded in 2022. The amount declined marginally by 7.7 percent when compared to N42.03 trillion recorded in December 2022.

Experts believe February will surpass the January records as cash scarcity persists.

Naira scarcity: Banks, PoS operators, cash out big as Nigerians transact N39.5tn electronically in one month

Legit.ng reported that Nigerians recorded N807.16 billion in Point of Sale transactions in January 2023.

This is a 40.69 percent increase from the N573.72bn transactions done in January 2022.

The figures are contained in the Nigeria Inter-Bank Settlement System data from its website.

Source: Legit.ng