According to data from the Nigeria Inter-Bank Settlement System, cashless transactions increased by 44% year on year to N117.33 trillion in the first four months of 2022.
From January to April 2022, N117.33tn was processed through electronic channels, which is N35.79tn more than the N81.54tn processed during the same period in 2021.
The Nigeria Instant Payment System and Point of Sales terminals are used to monitor cashless transactions on the NIBSS.
In January 2022, the nation processed N27.22tn electronically; this increased to N27.76tn in February, N32.52tn in March, and N29.84tn in April 2022.
In January 2021, N18.99tn was processed electronically, followed by N18.79tn in February, N22.55tn in March, and N21.19tn in April.
Electronic channels were used 1.88 trillion times in the first four months of 2022, representing a 44.26 percent increase over the 1.3 trillion times used in the same period in 2021.
This maintains the growth seen in electronic payment following the onset of the COVID-19 pandemic.
In a report titled ‘Instant Payments – 2020 Annual Statistics,’ the NIBSS stated that COVID had altered the e-payments landscape and hastened the adoption of instant payments as people shift to electronic channels for funds exchange.
The CBN stated in the preface of a document titled ‘Why The Central Bank of Nigeria Made the Cash-less Policy,’ that Nigeria disclosed at the time that there was a need to help Nigerians migrate from a cash-based economy to an electronic-driven economy.
“Our economy uses too much cash for transactions for goods and services, especially buying and selling,” the apex bank stated.
“This is not how it is done in other progressive countries around the world where other payment options such as debit and credit cards, bank transfers, bank direct debits, Automated Teller Machines, and even mobile phone money are available.” These accomplishments have been made possible by changing people’s needs, competition among banks and other businesses, and technological advancements.
Lilian Phido, Head of Corporate Communications at NIBBS, commented on the surge in electronic payment, saying, “It is very clear that more and more people are accepting the channels of payment that are available, and the platforms are stable.” These components have grown with stability. More and more people are moving as the economy improves.”
Analysts believe that the convenience of cashless transactions has encouraged more people to use electronic transfers.
