According to the most recent data from the Nigeria Inter-Bank Settlement System (NIBBS), the total value of electronic transactions recorded under the NIBSS Instant Payments (NIP) increased by c.13%m/m and 50% y/y to c.NGN33.2trn in August ‘22. On a cumulative basis, the value of transactions processed through NIP between January and August increased by 42% y/y to NGN238.7trn. The mobile USSD channel allows all Nigerian banks access to the NIP payment platform. As such, the stellar growth registered by electronic payments can be linked to the growing penetration of mobile telephony across the country, particularly the rapid growth of 4G broadband networks.

Although NIP transactions typically account for over 90% of electronic payment transactions due to the ease of use and ubiquitous nature of mobile phones, the data also showed considerable growth for other electronic transaction channels.

For instance, transactions processed through the mobile (inter-scheme) channel increased 156% y/y to NGN1.8trn in August, thereby taking the ytd value to NGN11.1trn or a growth of 158% y/y.

Transactions made via point-of-sale (PoS) channels increased by 41% y/y to NGN711bn in August. On a cumulative basis for the 8 months to August, the value of transactions processed through PoS channels increased by c. 31% y/y to NGN5.3trn.

The E-bills pay platform, which makes it easier to pay bills, saw growth of 36% y/y NGN263bn in August, and almost NGN2.0trn (+33% y/y) over the January to August ’22 period.

Payments through cheques are increasingly getting out of favour. Payments through the channel were flat ytd at NGN2.1trn.

Prospects for electronic payment channels are being enhanced by the continued push to deepen broadband penetration and the ongoing displacement of cash-based commerce with e-commerce, which has accelerated at a very rapid pace.