Mobile transactions value grows 153% YoY
By Jeph Ajobaju, Chief Copy Editor
Mobile transactions worth N12.8 trillion were carried out in the first nine months of the year to September (9M 2022), more than double the amount in 9M 2021 and that of full year 2020 (FY 2020).
Newly released Nigeria Inter-Bank Settlement System (NIBSS) data covering 2018 to 2022 shows mobile inter-scheme transactions grew 153 per cent year-on-year (YoY) from N5.07 trillion in 9M 2021.
Total transactions value for 9M 2022 is even higher compared with 9M 2020 (N1.89 trillion), 9M 2019 (N461.4 billion), and 9M 2018 (N216.4 billion).
Mobile and electronic banking have been on the rise particularly since the pandemic, which necessitated more cashless payments.
NIBSS data shows the volume of mobile transactions rose more than 132 per cent in 9M 2022, reaching 438.28 million against 284.5 million in 9M 2021, per Nairametrics.
A total N6.05 trillion was spent through POS transactions in 9M 2022, just a shade off N6.4 trillion spent in FY 2021, with three months left till FY 2022.
__________________________________________________________________
Related articles:
ICT revenue grows to N408b on the crest of digital economy push
Abuja slashes ICT budget 71% despite driving economy
ISP firms rise to 225 to power internet growth
__________________________________________________________________
Banks, telcos gain most
Mobile and other digital payments result in gains for banks through charges and for telecom service providers through increased data consumption.
MTN generated N549.2 billion revenue from data in 9M 2022, a 50 per cent increase on N366.18 billion in 9M 2021, according to reporting by Nairametrics.
Airtel earned $431 million from data business between April and September 2022, a 22.8 per cent rise from $351 million in the same period in 2021.
FBN Holdings made N39.98 billion from e-banking in 9M 2022, Access Bank (N49.39 billion), and GTBank (N15.18 billion).
More spending expected in Q4 2022
Mobile transactions are expected to rise in the fourth quarter of 2022 (Q4 2022) especially in December characterised by festivities and increased spending.
Nigerians in the diaspora would return home to their families, which would increase spending, most of it through digital payments.
CBN digital push
To tame inflation, the Central Bank of Nigeria (CBN) has adopted a hawkish monetary policy by increasing the cost of credit and mopping up liquidity from circulation.
Currency in circulation rose to N3.23 trillion in September 2022 with money supply at almost N50 trillion.
Growing mobile transactions is in line with the Financial Inclusion strategy of the CBN to reduce the number of unbanked and underbanked citizens by encouraging cashless banking.
The CBN launched eNaira in 2021 which it said recorded 200,000 users and N4 billion worth of transactions in one year.