September 30, 2024/FBNQuest Research

According to the most recent data from the Nigeria Inter-Bank Settlement System (NIBSS), the total value of electronic transactions processed under the NIBSS Instant Payments (NIP) platform returned to normal growth trajectory in July 2024, after a brief moderation in June 2024. During the review month, the value of recorded transactions increased by 12% month-on-month (MoM) and 89% year-on-year (YoY) to N89.5trn. Cumulatively, the total value of transactions processed electronically through the NIP platform between January and July 2024 saw a remarkable increase of 86% y/y to N566.4trn.

• The steady rise in mobile telephony services and internet penetration, an increasing number of fintech companies and the Central Bank of Nigeria’s (CBN) cashless policy drive are some of the factors responsible for the growing adoption of electronic payment systems in the country.
• Increases of 4% MoM and 22% YoY in the volume of electronic transactions to 907 million drove the robust MoM and YoY growth in the value of NIP transactions.
• In addition to the surge in NIP electronic transactions, all payments processed through all other electronic payment channels grew during the review month.
• For instance, the total value of transactions through the mobile channel rose by 10% MoM and 63% YoY to N6.2trn in July 2024.  
• Payments processed through the Point-of-Sale (PoS) channel also saw increases of 8% MoM and 9% YoY to N1.0trn.
• The E-bills pay platform, commonly used to facilitate bill payments, rose by +5% MoM to N252.1bn. However, on a YoY basis, the value of transactions fell by -5% YoY.
• Payments through cheques increased by 30% m/m and 17% YoY to about N293.8bn, indicating that some individuals and corporates still prefer cheque transactions.
• Looking ahead, we expect that the CBN’s ongoing effort towards a cashless society and the growing emergence of fintech companies will continue to push the widespread adoption of electronic payments in Nigeria.