By Tony Chukwunyem
The total value of Point of Sales (PoS) transactions in the first 10 months of 2024 stood at N10.54 trillion compared with N9.16 trillion recorded in the corresponding period of 2023, indicating a 15.09 per cent increase, findings by New Telegraph has shown The Nigeria Interbank Settlement System (NIBSS) had revealed a steady rise in the number of PoS terminals across the country, saying that the adoption and patronage of electronic channels had given a boost to Federal Government’s cashless policy initiative.
An analysis of data released by NIBSS has shown that the monthly value of PoS transactions in the country stood at N850.09 billion in January 2024; N805.05 billion in February; N958.99 billion in March; N811.77 billion in April; N868.66 billion in May; N930.76 billion in June; N1.05 trillion in July; N1.198 trillion in August; N1.231 trillion in September and N1.84 trillion in October.
A recent report by analysts, which stated that transactions through electronic payment (e-payment) channels, in the country rose by 10.10 per cent, or N10.03 trillion, to N109.08 trillion in October 2024 from the N99.08 trillion recorded in the previous month, attributed the increase in the value of e-payment transactions to the rapid adoption of PoS terminals by merchants and growing use of PoS for withdrawals.
Analysts, in fact, note that there has been increased adoption of epayment in the country in recent years, occasioned 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.
For instance, in its report titled, “Instant Payments – 2020 Annual Statistics”, the NIBSS stated: “Covid-19 changed the e-payments landscape, accelerating the adoption of instant payments as more people transitioned to electronic channels for funds exchange in the wake of government imposed lockdowns.”
New Telegraph reports that implementation challenges with the CBN’s naira redesign policy led to an acute shortage of cash, which crippled economic activities across the country in the first quarter of last year, thereby forcing bank customers, who were unable to access cash at the time, to adopt e-payment channels.
Indeed, there are indications that lingering cash scarcity in the banking system was responsible for the reported surge in the value of PoS transactions in October as more people became banking agents or PoS merchants to meet increased demand for cash from bank customers who are frustrated by their inability to withdraw cash from ATMs or banking halls.
