By Milcah Tanimu
E-payment transactions in Nigeria hit an unprecedented N89.5 trillion in July 2024, according to the Nigeria Inter-Bank Settlement Systems (NIBSS). This is the highest monthly record on the NIBSS Instant Payment (NIP) platform, reflecting an 89% year-on-year growth from N47.4 trillion in July 2023.
The rise in digital payments is linked to the Central Bank of Nigeria’s (CBN) cashless policy and recent cash shortages. These factors have pushed more Nigerians to use electronic payment methods. The revised policy, effective from January 2023, limits cash withdrawals to N500,000 weekly for individuals and N5 million for corporate organizations.
Total electronic transactions for January to July 2024 have reached N566.3 trillion. This figure is close to the N600 trillion recorded for the entire year of 2023, with five months still to go. Analysts predict that 2024 will exceed last year’s total.
In terms of transaction volume, NIP processed 907 million transactions in July 2024. This is a 22% increase compared to 743 million in July 2023. Industry experts believe cash withdrawal limits and scarcity have pushed people towards digital payments like mobile transfers and PoS.
Adewale Adeoye, a financial analyst, noted that cash shortages have led many Nigerians to embrace cashless options. Banks often limit counter withdrawals to as little as N5,000.
With growing adoption of digital platforms, such as mobile apps and USSD, Nigeria’s e-payment transactions are likely to keep rising. The CBN’s cashless policy continues to drive this trend forward.
