In a significant milestone for the Nigerian economy, the Nigeria Inter-Bank Settlement Systems (NIBSS) has reported that Nigerians spent an unprecedented N89.5 trillion through electronic channels in July 2024. This figure not only sets a new record for monthly transactions on the NIBSS Instant Payment (NIP) platform but also reflects an impressive 89% year-on-year increase compared to the N47.39 trillion recorded in July 2023.
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A Surge in Electronic Transactions
The robust growth in electronic transactions indicates a strong shift toward cashless payments in Nigeria. With the total value of electronic transactions from January to July 2024 reaching N566.3 trillion, the country is poised to surpass the N600 trillion benchmark achieved in the entire year of 2023, even with five months remaining in the year.
The NIP, which was launched in 2011, serves as an online real-time inter-bank payment platform that facilitates instant value transfers across various channels. This platform has become increasingly accessible to consumers through internet banking, mobile apps, USSD, ATMs, POS terminals, and bank branches.
Transaction Volume Highlights
The NIBSS report also revealed that the volume of NIP transactions in July 2024 soared to 907 million, marking a 22% increase from the 743 million transactions recorded in July 2023. This surge demonstrates the growing reliance on digital payment systems among Nigerians, as more people and businesses adopt cashless solutions for their financial activities.
Implications for the Nigerian Economy
This exponential growth in electronic transactions has several implications for the Nigerian economy. It reflects a shift towards a more digitalized financial landscape, enhancing financial inclusion and promoting efficiency in transactions. The increased adoption of cashless payments can lead to a reduction in the costs associated with cash handling and improve overall economic transparency.
As the NIBSS continues to innovate and expand the capabilities of the NIP platform, it is likely that we will see further increases in both the volume and value of electronic transactions in the coming months.
Conclusion: Embracing a Cashless Future
The N89.5 trillion spent electronically in July 2024 is a testament to Nigeria’s rapid advancement toward a cashless society. As more Nigerians embrace digital payment methods, the need for robust cybersecurity measures and continuous improvement in transaction processes becomes paramount. The NIBSS and participating banks must remain vigilant in addressing these challenges to ensure a secure and efficient cashless experience for all users.
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