The Nigeria Inter-Bank Settlement System (NIBSS) has reported that Nigeria’s electronic transactions on its Instant Payments channel in 2024 surged by 79% 2024 compared to the total value of e-transactions in the previous year, peaking at a record high of N1.08 quadrillion.
The NIBSS Instant Payments is an account-number-based, online, real-time inter-bank payment solution introduced by the NIBSS in 2011 as part of its initiatives to improve the efficiency of e-transactions in the country.
The monthly data on the e-transactions on the NIBSS Instant Payments channel showed that the value of electronic transactions increased through the months, from N72.11 trillion transactions recorded in January last year.
For instance, in the last quarter of 2024, the NIP transactions totalled N103.21 trillion in October and rose to N109.53 trillion in November and closed at N115.12 trillion in December.
When analyzed based on volume of transactions, the data from the NIBSS showed Nigeria’s e-transactions volume increased by 13.69% from 11.69 billion in 2023 to 13.92 billion by the end of 2024.
According to the report, the highest e-transaction volume was recorded in May at 1.02 billion, while the lowest was 871.66 million recorded in June 2024.
It would be recalled that the Central Bank of Nigeria (CBN) had, as part of its regulatory steps to reduce cash transactions in the economy, on 9 January 2023, reviewed its cash withdrawal limits for individuals and corporate organisations across all payment channels.
It stated that the revised policy on cash-based transactions was aimed at reducing cash in circulation and promoting e-transactions for goods and services.
The apex bank maintained that the new policy would also reduce banking service costs, including credit charges, and deepen financial inclusion by providing more efficient transaction options such as the Point of Sale (POS) services particularly at the under-banked and unbanked communities in the rural areas.
According to the CBN, the policy measure will also improve the effectiveness of monetary policy in mitigating surging inflation in the economy and driving economic growth, increase consumer convenience, reduce cash-related crimes, especially through banditry, ransom-taking, and terrorism financing.