A recent report by the Nigeria Inter-Bank Settlement System (NIBSS) indicates that between January and April 2022, the first four months of 2022, a total of N117.33 trillion payments was processed through electronic channels.
This is N35.79 trillion higher than the N81.54 trillion processed in the corresponding period of 2021. Nigeria recorded N27.22 trillion in electronic payments in January 2022, N27.76 trillion in February, N32.52 trillion in March, and N29.84 trillion in April 2022, amounting to a total of N117.33 trillion.
The NIBSS monitors cashless transactions through the Nigeria Instant Payment System and Point of Sales terminals in Nigeria.
The COVID-19 pandemic might be partly responsible for the rise in the value of cashless transactions.
At the peak of the pandemic, the lockdown and movement restrictions compelled Nigerians, especially the youth, to purchase goods via e-commerce channels and pay electronically.
Additionally, the increase in the value of electronic transactions indicates progress towards attaining the CBN’s policy goal of a cashless economy.
Transaction charges per electronic transaction make some people prefer payment through cash.
Hence, reducing transaction charges will likely increase electronic payments and, in turn, reduce exposure to risks such as robbery associated with carrying bulk cash and lowers the frequency of printing new currency notes to replace damaged ones.
