In January 2023, registered mobile users in Nigeria transacted for N2.37 trillion, according to data recently made available by the Nigeria Inter-Banking Settlement Systems.
According to the NIBSS, this represents a 125 percent increase compared to the volume of transactions recorded in the same period last year.
The NIBSS is tasked with managing inter-bank payments in order to get rid of any potential bottlenecks related to inter-bank funds transfer and settlement. It is owned by the Central Bank of Nigeria and all licensed Deposit Money Banks in Nigeria.
This increase comes amidst the scarcity of cash in the country occasioned by the redesign of some of the N200, N500, N1000 naira notes.
In addition, the report showed that the number of mobile transactions in Nigeria, the continent’s largest economy, increased by 55% year over year to 108.1 million transactions from 32.6 million transactions recorded in January 2022.
Recall that The Governor of the Central Bank of Nigeria had in October, 2022 announced plans to redesign the N200, 500, N1,000 notes which he said were necessary to help reduce the amount of cash in circulation and also aid the cashless policy.
Emefiele stated that the redesign of the naira would help to rein in the currency outside of the banking system and deepen the country’s cashless economy drive, reducing incidents of terrorism and kidnapping.
According to the CBN’s new cashless policy, daily cash withdrawal over the counter had been limited to N500,000 for individuals while corporate organisations are allowed N5 million.
Withdrawals for daily use from the ATM were also limited to N20,000 per person per day however, following the deadline for the return of the old cash, Nigerians have bemoaned unavailability of the new cash.
Discussion about this post