Electronic Payments Rise to N48 Trillion Over Naira Crisis, as CBN Bars Banks From Operating PoS

Electronic Payments Rise to N48 Trillion Over Naira Crisis, as CBN Bars Banks From Operating PoS

  • The Nigerian payment ecosystem witnessed a spike in e-transactions in March 2023
  • The increase was due to a surge in failed transactions recorded in February and March this year
  • Nigerians reportedly used Point of Sale (PoS) terminals and other channels 1.35 trillion times in March this year

The volume of cash transactions rose to 31.35% from N37.67 trillion in February to N49.48 trillion in March.

The increase comes after a spike in failed transactions in February drove e-payments to fall by 4.83% from N39.58 trillion in January.

PoS, e-Payment, cashless transactions
PoS operators and other payment channels were used trillions of times in March. Credit: Rapeepong Puttakumwong
Source: Getty Images

Cashless transactions skyrocketed in March

The volume of cashless transactions in March also reached an all-time high in a month, dwarfing the previous month’s record of N42.86 trillion recorded in December 2022.

PAY ATTENTION: Join Legit.ng Telegram channel! Never miss important updates!

New data released by the Nigeria Inter-Bank Settlement System (NIBSS) on Monday, April 17, 2022, reveals that Nigerians used electronic channels 1.35 billion times in March 2023, 448.54 million times above 901.46 million times in February.

Read also

Lagos, Kwara on list of states with highest, lowest food inflation rate in Nigeria

The NIBSS report shows cashless transactions from Nigeria Instant Payment System (NIPS) and Point of Sale (PoS) terminals. Instant payments in March accounted for N48.33 trillion, while PoS transactions recorded about N1.15 trillion in one month.

A Punch report states that more Nigerian depend on mobile devices for their financial transactions as it increased by 106.93% month-on-month, allowing for a 61.99% increase in transaction value from N2.56 trillion for a 61.99% increase in transaction volume in March.

Transaction glitches disrupt CBN's plans

Cashless transactions grew by 44.84% to N126.73 trillion in the first quarter of 2023 from N87.49 trillion in the same period in 2022.

According to data from NIBBS, Nigeria’s banking infrastructure suffered massive glitches that disrupted transactions across all channels and thawed the cashless drive of the Central Bank of Nigeria (CBN).

The volume of cashless transactions in Nigeria has skyrocketed since the CBN introduced the now botched cashless policy.

Read also

CBN's new announcement drives BVN database to 57 million, as more Nigerians rush to link accounts

Report says customers paid N92.2 billion for N4.6 trillion PoS transactions in seven months

Legit.ng reported that, per Nigeria Interbank Settlement System (NIBSS) report, bank customers may have spent about N92.2 billion using Point of Sales terminals in the first seven months of this year.

PoS transactions in the first seven months of 2022 totalled N4.61 trillion. For withdrawals or transactions between N1,000 to N5,000 on PoS, about an N100 fee is charged. It brings the total transactions in the period to about N92.2 billion.

Source: Legit.ng

Pascal Oparada avatar

Pascal Oparada (Business editor) Pascal Oparada is a Mass Communications Graduate from Yaba College of Technology with over 10 years of experience in journalism. He has worked in reputable media organizations such as Daily Independent, TheNiche newspaper, and the Nigerian Xpress. He is a 2018 PwC Media Excellence Award winner. Email:pascal.oparada@corp.legit.ng

Online view pixel