ePayment transactions soar 39.5% YoY
By Jeph Ajobaju, Chief Copy Editor
Electronic transactions on the Nigeria Inter-Bank Settlement Systems (NIBSS) Instant Payment (NIP) platform rose to N32.8 trillion and led to N271.5 trillion epayments in the first nine months of the year to September (9M 2022).
Electronic payment value grew 39.5 per cent year-on-year on N23.5 trillion in 9M 2022, but declined 1.2 per cent month-on-month (MoM) on N33.2 trillion in August 2022, according to latest data released by the NIBSS.
NIP volume rose to 438 million in 9M 2022, an increase of a 48 per cent above 296 million in 9M 2021.
Monthly transaction figures
January – N26.6 trillion, up 43.7 per cent on N18.5 trillion YoY
February – N27.2 trillion, 48.6 per cent on N18.3 trillion
March – N31.8 trillion, up 44.5 per cent on N22 trillion
April – N29.2 trillion, up 41.6 per cent on N20.6 trillion
May – N29.6 trillion, up 43 per cent on N20.7 trillion
June – N31.7 trillion, up 37 per cent on N23.1 trillion
July – N29.3 trillion, up 31 per cent on N22.4 trillion
August – N33.2 trillion, up 50 per cent on N22.1 trillion
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About NIP
Nairametrics explains the NIP is an account-number-based, online-real-time inter-bank payment solution developed by NIBSS in 2011.
It is the Nigerian financial industry’s preferred funds transfer platform that guarantees instant value to the beneficiary.
Banks have over the years offered the NIP to their customers through various channels – internet banking, bank branch, kiosks, mobile apps, and Unstructured Supplementary Service Data (USSD), according to the NIBSS.
Mobile money transactions rise to N11tr
Mobile money transactions rose to N11.10 trillion in the first eight months of 2022, (8M 2022), up N4.29 trillion on 8M 2021, riding on the surge that began during the coronavirus pandemic in 2020 which saw a decline in the use of cheques.
NIBSS data shows mobile devices drove electronic payment in 2020, accounting for 43 per cent of total transactions in that year.
Some 35 per cent of transactions used USSD and 78 per cent of total transfer transactions were done on mobile devices.
The NIBSS reports in its “Instant payments 2020 annual statistics” that mobile devices drove epayment in 2020 as they accounted for 43 per cent of total transactions.
Mobile telephone driving epayments
Nigerian Communications Commission (NCC) Executive Vice Chairman and Chief Executive Officer Umar Danbatta said a benefit of financial service riding on telecom infrastructure is the provision of USSD which has eased financial transactions.
The number of active mobile telephone subscribers increased from 173.63 million in January 2019 to 206.08 million in June 2022.
Global System for Mobile Communications (GSMA), the worldwide body of telecom companies, said in its mobile money industry report for 2021 that:
“While 2020 saw unparalleled challenges brought on by the COVID-19 pandemic, the mobile money industry witnessed strong efforts in striving towards cashless societies, entering strategic partnerships to expand the horizons of digital payments and developing new and robust interoperable payment systems.”