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Nigeria’s electronic transactions have surged to a record high of N1.08 quadrillion in 2024, representing a 79% increase compared to the previous year. This is according to the latest data from the Nigeria Inter-Bank Settlement System (NIBSS) on the value of NIBSS Instant Payments.

The NIBSS Instant Payments is an account-number-based, online real-time interbank payment solution developed in 2011 by NIBSS. It guarantees instant value to the beneficiary.

An analysis of the data showed that the value of electronic transactions has grown steadily in 2024, from N72.11 trillion in January to N115.12 trillion in December. The highest volume of transactions was recorded in May with 1.02 billion transactions, while the lowest was in June with 871.66 million transactions.

The Central Bank of Nigeria’s (CBN) cashless policy, which was introduced in January 2023, has been credited with driving the growth in electronic transactions. The policy aimed to reduce the amount of physical cash circulating in the economy and encourage the use of electronic means for payments.

According to the CBN, the cashless policy will reduce the cost of banking services, drive financial inclusion, and improve the effectiveness of monetary policy in managing inflation and driving economic growth.

The Electronic Financial Inclusion (EFInA) Access to Finance Survey revealed that financial inclusion rose to 74% in 2023, from 68% in 2020. However, 26% of Nigerians remain financially excluded.

Speaking on the development, the National President of the Association of Mobile Money and Bank Agents in Nigeria, Sarafadeen Fasasi, said, “Financial inclusion is meant to bring the unbanked into the banking space and make people transact digitally without cash. When you look at it, there has been an increase in the number of agents deployed over the years, and agents have been able to penetrate the nooks and crannies of this country, helping those unbanked to transact digitally.”

An economist and sustainability expert, Marcel Okeke, described the growth in electronic transactions as a positive development, saying, “That is a good thing. That should indicate some progress with the cashless economy.

However, Okeke cautioned about cyber threats, saying, “That is a warning we have to issue. So that the authorities will be doing their best to improve conditions. No human system is ever error-proof. It has to be backed up in the area of cybercrime protection.”

An economic and financial analyst, Rotimi Fakayejo, also hailed the development, saying, “Nigeria is where the e-payment system is most effective all over the world. Even in the US, it is not as acceptable. The volume is not as high as Nigeria’s.”

Fakayejo attributed the high volume of electronic transactions in Nigeria to the frequent purchases made by individuals, saying, “We are paying for everything from N500 to N1000 to N500,000, but the basic reason is that the scarcity of naira, which happened in 2023 has made a lot of people trust more in electronic payment, and the risk is low.”

The growth in electronic transactions is expected to continue, driven by the increasing adoption of digital payment systems and the expansion of mobile money services. As Nigeria continues to drive towards a cashless economy, it is likely that electronic transactions will play an increasingly important role in the country’s financial landscape.

In conclusion, the surge in electronic transactions in Nigeria is a positive development that reflects the country’s progress towards a cashless economy. As the government and financial institutions continue to promote digital payment systems, it is likely that electronic transactions will continue to grow, driving financial inclusion and economic growth in Nigeria.

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