According to data from the Nigeria Inter-Bank Settlement System (NIBSS), electronic payment transactions in the country grew by 42 percent to N387 trillion in 2022. In 2021, electronic payment transactions recorded in Nigeria were worth N272 trillion.
According to the data, there was an increase throughout each month of the year but December saw the highest value in terms of transactions. This is totally understandable because December is characterized by festivities and increased spending. In December alone, Nigerians made e-payment transactions worth N42 trillion over various electronic channels. December 2022 was also the all-time high monthly record on the NIBSS electronic payment platform.
It is also relevant to note that the volume of transactions processed also grew from the 3.4 billion recorded in 2021 to 5.2 billion in 2022. This represents an increase of almost 50 percent year-on-year.
This year, a surge in e-payment transactions is also expected to happen following the cashless policy of Nigeria’s apex bank which has started to take effect. Nigerians are beginning to, more than ever, embrace the use of mobile transfers, POS, USSD, QR payments, etc for making payments. The cashless policy limits the amount Nigerians (individuals and corporates) can withdraw, and this is expected to drive a surge in electronic transactions this year. Under the policy,
- The maximum weekly cash withdrawal limit across all channels by individuals and corporate organizations will be N500,000 and N5,000,000 respectively.
- For compelling situations, when cash withdrawals above the prescribed limit are required for legitimate reasons, such requests will be subject to a processing fee of 3% and 5% for individuals and organizations respectively. This is in addition to further requirements as contained in the policy.
- Third-party cheques above N100,000 will not be eligible for payment over the counter, while the existing limit of N10 million on clearing cheques still subsists.
The policy also followed the redesign of the N1,000, N500, and N200 notes.