Cashless Policy: PoS transactions grow by 40% as e-payment hits N39.58tn, NIBSS

Data emerging from the Nigeria Inter-Bank Settlement System (NIBSS) reveals that cashless transactions in Nigeria rose by 45.41 percent y-o-y to N39.58tn in January 2023.

The NIBSS monitors cashless transactions through the Nigeria Instant Payment System and Point of Sales terminals. Total NIP transactions for the period rose by 45.52 per cent y-o-y from N26.65tn as of January 2022 to N38.77tn as of January 2023.

The usage of electronic channels for transactions grew by 45.50 per cent y-o-y from 438.48 million times to 638 million times in the period under review. According to the NIBSS, 955,234 deployed PoS terminals were in the country as of January 2022.

The scarcity of naira occasioned by the Central Bank of Nigeria’s redesign and withdrawal policy has increased Point of Sales transactions to N807.16bn in January 2023.

In 2022, the CBN announced a Naira redesign policy, withdrawal limits, and encouraged Nigerians to adopt electronic forms of transactions.

The CBN said, “The maximum weekly limit for cash withdrawals across all channels by individuals and corporate organizations shall be N500,000 and N5m respectively.”

It added, “Customers should be encouraged to use alternative channels (Internet banking, mobile banking apps, USSD, cards/POS, eNaira, etc.) to conduct their banking transactions.”

The CBN’s cashless policy aims to effect a cashless and efficient electronic payment system by 2023.

It said, “The use of cash will naturally slow with the ‘mobile first generation’, which will be economically active by 2025, hence one of the focuses of the PSV 2025 is enhancing the cashless policy of the CBN”, the document stated.

“As we implement the PSV 2025 agenda, the CBN will continue to ensure that the Nigerian payments system is widely utilised domestically, supports government’s financial inclusion objectives, and meets international standards while contributing to overall national economic growth and development of Nigeria.”