Windfall For Banks, Telcos As Mobile Transactions In Nigeria Double To N12.8 Trillion In 9 Months
The use of mobile and other digital forms of payment in Nigeria has also resulted in huge gains for Nigerian commercial banks and telecom services providers as the Nigeria Inter-Bank Settlement System (NIBSS) has announced a massive growth in the worth of mobile transactions carried out by Nigerians between January and September 2022.
According to the data released, Nigerians carried out N12.8 trillion worth of mobile transactions which is more than double the amount recorded in the same period last year and even much more than what was recorded in 2020.
NIBSS recorded that mobile inter-scheme transactions in Nigeria grew by a whopping 153% year-on-year in the first nine months of 2022 from N5.07 trillion recorded in the comparable period of 2021. The total transactions for the current year represent an even higher margin when compared to the same period of 2020 (N1.89 trillion), 2019 (N461.4 billion), and 2018 (N216.4 billion).
Since the COVID-19 pandemic, mobile and electronic forms of banking have been on the rise which has necessitated the use of more cashless forms of payment across the country. A closer look at the data tracked by the NIBSS showed that the volume of mobile transactions rose by over 132% in the review period.
Specifically, a total of 438.28 million transactions were recorded through mobile, higher than the 284.5 million transactions recorded in 2021. Similarly, a sum of N6.05 trillion was spent through POS transactions in the first nine months of the year, a little below the N6.4 trillion recorded in the full-year 2021, with three months left till the end of the year.
The huge gain that comes to banks and Telcos is because most of these transactions attract some charges for banks even as telcos gain from increased data consumption.
A review of the financials of listed telecommunication providers in the country showed impressive growth in data revenue as MTN Nigeria generate a whopping sum of N549.2 billion from data in the first nine months of the year, a 50% increase from the N366.18 billion earned during the comparable period in 2021.
Similarly, Airtel earned $431 million from their data business between April and September 2022, representing a 22.8% increase from $351 million recorded in the comparable period of last year.
However, banks have also raked a fortune from commissions charged on electronic banking transactions. FBN Holdings, in the first nine months of the year, recorded N39.98 billion as e-banking revenue, Access Bank (N49.39 billion), and GTBank raked in N15.18 billion.