PoS transaction value grows 32% YoY
By Jeph Ajobaju, Chief Copy Editor
Point of Sale (PoS) transaction value grew to N735.6 billion in September, the highest monthly record since the Central Bank of Nigeria (CBN) launched the quest for a cashless economy in January 2012.
Nigeria Inter-Bank Settlement System (NIBSS) data shows customers spent N6.05 trillion across PoS agents in the first nine months of the year to September (9M 2022), just a shade off N6.4 trillion spent in full year 2021 (FY 2021).
Transaction value in 9M 2022 rose 32 per cent year-on-year (YoY) above N555.64 billion in 9M 2021. Transaction volume grew 14 per cent YoY to 100.4 million in 9M 2022.
According to the NIBSS, transactions were done on more than 1.484 million active PoS terminals nationwide, with 568,488 new ones deployed in 9M 2022. The figure had stood at 915,519 in December 2021.
NIBSS said 2.164 million PoS machines were registered by 9M 2022, which means 680,991 are yet to be deployed or have become inactive.
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Driving forces
Nairametrics writes the drivers of PoS transactions include
- Rapid adoption by merchants for receiving payments.
- PoS bridges the gap created by the shortage of Automated Teller Machines (ATMs) of banks, as many Nigerians now withdraw through PoS agents.
- Profitability of PoS transactions for both banks and vendors.
- Transaction cost is borne by customers, creating profit for agents and banks.
- PoS is a means of employment for youths who provide the service.
Top performance by state
Most PoS transaction volume growth between 2019 and 2020 occurred in Lagos, with Abuja a distant second, according to a recent report by the NIBSS.
Lagos – 453 million (up 70 per cent on 226 million in 2019)
Abuja – 32 million (4.9 per cent of 2020 total)
Rivers – 31 million (4.7 per cent)
Oyo – 17.2 million (2.6 per cent)
Delta – 16.6 million (2.5 per cent)
Bottom PoS performance by state
Zamfara – 210, 069
Yobe – 118, 609
Kebbi – 98,000