Nigeria electronic payment system hits big, says CBN

The Central Bank of Nigeria (CBN) has said that technological developments in the banking sector has led to the increase of electronic system of payment between 2013 and 2018.

The bank stated that electronic transactions via the Automated Teller Machine (ATM) increased from 295 million to 875 million between 2013 and 2018 while Point of Sales (PoS) transactions rose by 3,076 per cent to 285.89 million in the period under review.

This was disclosed on Tuesday by the Deputy Governor, Financial System Stability, CBN, Mrs Aishah Ahmad, during the Electronic Payments Incentive Scheme Efficiency awards in Lagos.

While referring to the data from the Nigeria Inter-Bank Settlement System (NIBSS), she noted that ATM transactions rose by over 196 per cent (295 million in 2013 compared with 875 million in 2018; Point of Sale transactions rose by 3,076 per cent (from nine million in 2013 to 285.89 million in 2018); Electronic transfers through web rose by 2,440 per cent (from two million in 2013 to 50.8 million in 2018).

On the other side, paper-based payments transactions using cheques declined by over 35 per cent between 2013 and 2018 (14 million transactions conducted using cheques in 2013 relative to nine million transactions in 2018).

Read also: Sirika asks Senate to approve new $461.8m loan for airports

She explained that leveraging on technological advancements and the adoption of mobile as the primary channel had made it easier and cheaper to conduct electronic transactions.

To meet up with these developments, she added that the apex bank was set to review the Payment Service Vision (PSV) 2020.

She said, “The CBN is undertaking a review of the PSV 2020 (created to provide a sound regulatory framework that supports innovation, protects consumers and promotes financial stability). The proposed refreshed strategy is tagged PSV 2030.”

‘’New technologies and a growing number of financial technology companies in the markets were supporting faster payments and settlements,’’ she noted.