…to release February allocation today
Transactions through electronic payment (epayment) channels in the country declined by 22.46 per cent, or N26.92 trillion to N92.92 trillion in February 2025 from N119.84 trillion recorded in the previous month.
The significant decline, according to report, “may be partially attributed to the delay in Federal Account Allocation Committee (FAAC) disbursement encountered in February.”
Reflecting on documents by the Nigeria Interbank Settlement System (NIBSS), analysts at Financial Derivatives Company Limited (FDC), stated:
“Value of transaction for February plunged by 22.46 per cent to N92.92 trillion in February from N119.84 trillion in January, as transactions declined across all four tracked payment modes.
“This may be partially attributed to the delay in FAAC disbursement encountered in February. Notably, Nigeria Interbank Settlement System Electronic Fund Transfer (NEFT) declined significantly by 72.35 per cent to N4.25 trillion from N15.37 trillion in January.”
New Telegraph’s analysis of the report shows that NIBSS Instant Payment (NIP) transactions dipped by 14.86 per cent to N85.19 trillion in February from N100.06 trillion in January.
The report further indicates that the value of transactions through Point Of Sale (POS) terminals, declined by 22.68 per cent to N3.17 trillion in February compared with N4.10 trillion in the previous month.
Similarly, the value of cheque transactions headed south in February , as it dropped by 3.53 per cent to N301 billion from N312 billion in January.
As earlier indicated, transactions via the NEFT e-payment mode recorded the biggest decline in February as they plunged by 72.35 per cent to N4.25 trillion from N15.37 trillion in the previous month.
Interestingly, while commenting on the decline in e-payment transactions in January 2025, FDC had in a report released, last month, projected that the value of transactions through e-payment channels will likely rise to N125.73 trillion and N126.43 trillion in February and March this year respectively, driven by factors such as improved services from payment system operators, delayed implementation of the cybersecurity tax and more people jettisoning cash for electronic transfers.
While the firm’s prediction for February fell through, latest data r released by the NIBSS indicates that the value of electronic payment transactions in the country hit a record N1.07 quadrillion in 2024 compared with N603.36 trillion in the previous year.
Analysts note that there has been increased adoption of e-payment in the country in recent years, driven by factors such as the Central Bank of Nigeria’s (CBN) initiatives to promote the cashless policy, the impact of the 2020 Covid-19 crisis and the naira redesign programme introduced by the apex bank in late 2022.
