The financial system of Nigeria has recorded a surge in the value of electronic payment transactions to N65.6 trillion in the first quarter of the year (Q1’21).
This indicates an increase of 82 percent Year-on-Year, YoY, from N36.02 trillion in the corresponding period of 2020 (Q1’2020).
Industry analysts have indicated that the development is connected to remote transactional relationships imposed on businesses and the general public by COVID-19 protocols which has already created a new normal in financial transactions .
Data on the four major e-payment channels released by the Nigeria Interbank Settlement System (NIBSS) shows that the surge is driven by a 80 percent YoY increase in volume of transactions to 54.07 billion in Q1’21 from 30.04 billion in Q1’2020.
The e-payment channels are Point of Sales (PoS), NIBSS Instant Payment (NIPs), Mobile Interscheme and NIBSS Electronic Transfer (NEFT).
Also riding on the back of the surge in e-payment transactions, banks’ income from e-payment rose sharply by 52 per cent, YoY, to N53.4 billion in Q1’21 from N35.2 billion in Q1’2020.
Breakdown of Transactions
Mobile Money Operators (Mobile Inter-scheme), which recorded 100 percent and 183 percent growth, YoY, in volume and value of transactions respectively to 486.36 million and N1.29 trillion in Q1’21 from 244.16 million and N451 billion in Q1’2020.
NIBSS Instant Payment (NIP) transactions paired in volume growth and came second in value growth at 100 per cent and 88 per cent YoY increases respectively to 734 million and N58.85 trillion in Q1’21 from 366.9 million and N31.24 trillion in Q1’20.
PoS transactions also recorded significant growth of 60 per cent and 48 per cent YoY increases in volume and value of transactions respectively to 223.45 million and N1.49 trillion in Q1’21 from 139.62 and N1.0 trillion in Q1’20.
Transactions through NIBSS Electronic Transfer (NEFT) recorded mixed performance. Though the volume of transactions fell by 12 per cent YoY to 4.47 billion in Q1’21 from 5.11 billion in Q1’20, the value of transactions rose by 19 per cent YoY to N3.96 trillion in Q1’21 from N3.32 trillion in Q1’2020.