April 25, 2024/FBNQuest Research

The total value of transactions recorded under the NIBSS Instant Payments (NIP) platform increased by +5% m/m to N83.0trn, according to the most recent update from the Nigeria Inter-Bank Settlement System (NIBSS). On a y/y basis, the value of transactions processed through the NIP platform increased significantly by +72% y/y. The value of electronic transactions has been on an upward trend since Jul ’23. The NIP channel has become one of the most widely used payment methods because of the steady rise in mobile telephone and internet penetration and the increasing emergence of fintech companies.

• Notably, payments processed through the NIP channel typically account for over 90% of all electronic payment transactions due to the near-real-time delivery of transactions and ease of usage.
• The m/m rise in the value of NIP processed transactions was supported by a 9% m/m increase in the volume of electronic transactions to 987 million.
• The steady rise in the adoption of electronic payment channels can be attributed to the Central Bank of Nigeria’s (CBN) efforts to promote a cashless economy.
• There was also robust growth in transactions processed through all other electronic payment channels during the period.
• Specifically, the total value of transactions made through the mobile channel increased by 18% m/m to N6.5trn.
• Similarly, payments through the Point-of-Sale (PoS) channel also increased by c.19% m/m to N961.9bn, aided by an increase of 6% m/m in the volume of transactions made through the POS channel.
• Payments through cheques fell by -14% m/m and -7% y/y to N262.4bn, reflecting the transition from cheques to alternative electronic payment channels.
• Looking ahead, we expect the continuous drive towards a cashless society and the CBN’s drive to enhance financial inclusion to accelerate the growth of e-payments across the country.