According to the most recent data from the Nigerian Inter-Bank Settlement System (NIBSS), the total value of electronic transactions recorded under the NIBSS Instant Payments (NIP) platform increased by c.13% m/m and c.51% y/y to NGN39.0trn in Nov ‘22. November’s figure represents the highest value of monthly transactions recorded on the platform and largely reflects the sustained growth of electronic payments in Nigeria. The NIP platform has become one of the most preferred methods of payment. Its growth has been driven by the steady rise in mobile telephony and growing internet penetration across the country.

On a cumulative basis, the total value of e-payment transactions processed through the NIP platform between January and November increased by 43% y/y to NGN345.1trn.

The growth in the value of NIP transactions in November can be linked to the increased volume of monthly transactions processed through the NIP platform. The volume of NIP transactions increased by 4% m/m and 54% y/y to 492.3 million in November.

With respect to other payment channels, transactions processed through the mobile (inter-scheme) channels increased by c.120% y/y to NGN2.1trn in Nov ’22, taking the aggregate transactions from Jan to Nov ’22 to c.NGN19.0trn.

Transactions made via point of sale (PoS) channels grew by 36% y/y to NGN759bn in November. Cumulatively, the value of transactions processed through PoS channels between Jan and Nov ‘22 increased by c.24% y/y to NGN9.6trn.

The E-bills pay channels, widely used for bills payment increased by 4% y/y to NGN214bn in November, and NGN4.7trn (+14% y/y) over the Jan ’22 to Nov ’22 period.

Payments made through cheques are gradually becoming less popular. Payments through the channel were flat y/y at NGN280bn.

The CBN’s move to limit the weekly cash withdrawals for individuals and corporate entities, aimed at reducing the circulation of the naira currency will further accelerate the growth of e-payments across its various payment channels.