Arewa: E-Payments Ecosystem Unlocked $3.2 billion in 2022

Nume Ekeghe and Dike Onwuamaeze

The Group Chief Financial Officer of Parthian Partners, Olayinka Arewa has stated that Nigeria unlocked $3.2 billion in additional economic output through the development and utilisation of electronic payments, particularly real-time payment services in 2022.

Speaking at the 2023 annual conference of the Finance Correspondent Association of Nigeria (FICAN) with the theme, “Strengthening Digital Infrastructure for Efficient Innovative Payment System in Nigeria,” held in Lagos, Arewa called for stronger collaboration to address challenges facing the country’s e-payment system.

He noted that electronic payments continue to attract substantial global investments and have exhibited the highest returns and growth within the sector over the past decade.

Arewa highlighted Nigeria’s potential as one of Africa’s largest economies to harness the opportunities within this sector, stressing the importance of agility in the ever-evolving digital landscape.

Arewa further explained, “Globally, financial technology has reshaped the consumer experience, with individuals seeking the convenience of conducting transactions anytime, anywhere. Take, for instance, Parthian Partners’ investment app, i-invest, which offers a secure platform for individuals to easily access investment opportunities such as Fixed Deposits, Treasury bills, Eurobonds, and even stock purchases on the Nigerian Exchange in one breath.

“Once your i-invest wallet is funded, you can invest in any product of your choice from anywhere you are in the world and at any time of the day. This would usually not take you more than five minutes. Electronic payments offer manifold benefits to our economy. According to a recent McKinsey report, FinTech activity in Nigeria, initially centered around payments, has expanded into various sectors. Presently, payment solutions constitute approximately 15 per cent of banking revenue pools in the country, a testament to the growing popularity of electronic transactions.”

Reflecting on the sector’s potential, Arewa added: “In 2022, Nigeria unlocked $3.2 billion in additional economic output through the development and utilisation of electronic payments, particularly real-time payment services. Electronic payments continue to attract substantial global investments and have exhibited the highest returns and growth within the sector over the past decade. As one of Africa’s largest economies, Nigeria is well-positioned to harness the potential within this sector. 

“Indeed, Nigeria has witnessed a remarkable digital transformation, with over 100 million active mobile phone users as of 2023. This statistic signals the advent of a fully digitized financial services sector. However, despite these advancements, Nigeria’s payment system predominantly relies on cash. Recent events, such as the implementation of the cashless policy following the Naira redesign late last year/early this year, highlighted the challenges associated with the country’s transition to a cashless economy. We understand that these challenges may appear formidable, but we are gathered here today because we believe these challenges are not insurmountable.”