NIBSS Reveals 40% PoS Transaction Growth As E-Payment Hits N39.58tn

The Nigeria Inter-Bank Settlement has revealed that the naira scarcity caused by the Central Bank of Nigeria’s redesign and cash withdrawal policy has pushed Point of Sales transactions to N807.16bn in January 2023.
This shows a 40.69 per cent year-on-year increase from the N573.72bn transactions that were done in January 2022. Total cashless transactions in Nigeria rose by 45.41 per cent 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 use 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. n
In 2022, the CBN announced a Naira redesign policy, and withdrawal limits, and encouraged Nigerians to adopt electronic forms of transactions.
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.”
According to the CBN, the use of case payments will reduce in the country by 2025. It stated this in its Payments Vision 2025 document.
It explained that by 2025, the country will have a cashless and efficient electronic payment system infrastructure to service all sectors of the economy.
Implementation of the policy has been postponed from its initial January 31 deadline to February 10. This new deadline is now subject to a Supreme Court judgment that has restrained the Federal Government from implementing its deadline.
Since the policy was announced, Nigerians have been subject to long ATM queues, buying of the naira, failed transactions, and problems with banks’ mobile applications.
According to the National President, the Association of Mobile Money and Bank Agents in Nigeria, Victor Olojo, the cashless policy has forced people to go digital.
He said, “The cashless issue forced people to move to digital, to PoS. The policy contributed to that growth. People had to seek alternative channels aside from cash so this is expected. But this is not all from PoS withdrawals, we have merchants, businesses, and supermarkets. All other sectors using PoS to transact contributed to it.”
Commenting on how PoS operators have been accessing cash, he added, “Cash has also not been available to operators, most of them have shut down. And those who are getting cash are seeking it from other alternatives, marketplaces, filling stations, pharmacies, and they get it at a cost.”