As more Nigerians frequently explore online alternatives at an accelerating rate to transact their businesses, the electronic payment system has recorded a staggering feat as customers, clients and business owners innovatively prefer payment for goods and services via online platform rather than the usual physical cash.
This, consequently, has led to a surge in value of e-payment deals in the last 8 months totalling about N238.7 trillion, according to the data released by the Nigeria Inter-Bank Settlement Systems (NIBSS).
The data, which was first reported by online platform, Nairametrics, shows that the transactions worth N33.2 trillion were performed electronically in August through the NIBSS Instant Payment platform (NIP), making it to become an all-time high e-payments value recorded in a month since the deployment of the platform.
Recall that as at the end of July 2022, transactions worth N204.5 trillion were performed electronically in Nigeria between January and July this year, via the same platform.
The recent figures compared to the previous data of N29.3 trillion of July, indicates a 13.3 per cent growth. Year on Year, the e-payment value increased by 50 per cent compared to N22.1 trillion recorded in August last year.
Many observers and analysts of the trends believed the novel spark indicates that the cashless policy of the Central Bank of Nigeria (CBN) is paying off amongst Nigerians.
…Reduction in cash transactions, a boost to CBN’s cashless policy
Reacting to the development in a chat with Nigerian NewsDirect on Sunday, the Chief Executive Officer (CEO), Centre for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf said reduction in cash transactions is a massive boost to the cashless policy of the Central Bank of Nigeria, noting that it improves efficiency and boosts financial inclusion.
According to him, “It is a commendable development. It shows that our electronic payment space is gaining a lot of traction. Across the globe, Nigeria’s system is first to reckon with. The reduction in cash transactions is a boost to Nigeria’s cashless policy drive.
“A lot of jobs have been created in the ecosystem. Look at those doing Point of Sale (POS) business. It has also improved efficiency and stymied the risk of carrying cash,” he said.
Speaking to Nigerian NewsDirect, the Executive Director of Nigerian Workforce Strategy and Enlightenment Centre (NIWOSEC), Dr David Kayode Ehindero stressed that this is good for the Nigerian Socio-Economy ratings since the world is going digital.
He emphasized that the response of Nigerians to the e-payment started slow but eventually gained massive acceptance.
“That means the cost deployed into printing of Naira will be re-channelled into better use.
“No doubt if all the challenges being experienced are out of our way as a nation, Nigeria is going to bounce back as a giant economy.”