Nigeria Recorded N600 Trillion e-Payment Transactions in 2023

Nume Ekeghe

Electronic payment transactions in Nigeria hit an all-time high in 2023 as it rose by 55 per cent to N600 trillion, compared to N387 trillion in 2022.

This was revealed in recent data by the Nigeria Inter-Bank Settlement System (NIBSS).

Also, the total value of point of sale (PoS) transactions for 2023 was N10.73 trillion compared to N8.39 trillion recorded in 2022 indicating a 27.85 per cent increase. 

The data from NIBSS indicated that in March 2023, the volume of e-payment transactions reached an unprecedented peak of 1.17 billion, followed by the 968 million transactions recorded in December.

A monthly breakdown on the analysis of electronic transactions value in Nigeria for the year 2023 revealed that in January 2023, Nigerians engaged in electronic transactions amounting to N38.8 trillion on various platforms.

Subsequently, in February, the value of e-payments stood at N36.8 trillion; in March 2023, the country  witnessed a substantial surge in the value of electronic transactions, reaching N48.3 trillion primarily driven by the prevailing scarcity of cash during that period.

Moving into April, a total of N41.3 trillion was recorded, and May witnessed a further increase in transaction volume, reaching N45.9 trillion.

Furthermore, in June 2023, the value of NIP transactions settled at N45.3 trillion, experiencing a marginal decline from the figure recorded in May. July witnessed a considerable leap in e-payment transactions, reaching N47.4 trillion.

In August, the value of NIP transactions rose even higher, reaching N50.9 trillion, while September maintained this upward trajectory, with transactions amounting to N51 trillion.

As the year progressed, October and November saw transaction values stand at N59 trillion and N63.6 trillion, respectively. Finally, the pinnacle of electronic transactions for the year was reached in December, with the highest recorded value of N71.9 trillion.

Also, a breakdown of the monthly volume of transactions for 2023, showed that January recorded 541 million transactions, February saw an uptick to 787.9 million while the month of March recorded the highest volume of transactions in 2023 at 1.17 billion, but April saw a decline to 813.9 million.

Furthermore, the month of May recorded a decline to 771.8 million, a mild uptick was seen in June at 729.06 million while July and August continued the upward trend at 743.15 million and 755.94 million respectively. However, September recorded a slight decline to 745 million transactions, just as October saw an uptick to 807.69 million, and November continued upwards to 828.17 million before ending the year at 968.59 million in December.

Also, a breakdown of value in PoS transactions in 2023 revealed significant fluctuations in transaction values in which January saw a robust start with transactions amounting to N807.16 billion, indicating a strong preference for cashless payments.

The momentum continued into February, with a notable increase in transaction values, reaching N883.45 billion; March recorded a substantial surge, marking a peak in PoS transaction values at N1.15 trillion.

Despite a slight decline in April, PoS transaction values remained significant, reaching N1.04 trillion.

Also, the month of May recorded N1.03 trillion transactions while June recorded a transaction value of N943.38 billion; July witnessed consistent usage of PoS transaction as values totalled N923.37 billion, and in August PoS transactions declined marginally accounting for a total value of N864.62 billion.

The downward trend continued in September with transaction values amounting to N728.66 billion, while October saw a rebound, with an uptick in transaction values reaching N779.33 billion. In November, the trend continued maintaining a substantial figure of N712.57 billion in PoS transactions and the year concluded on a high note in December, with transaction values totaling N862 billion, reflecting increased spending during the festive season.