Transactions failure on e-payment platforms in Nigeria are increasingly becoming a concern to millions of users.
Note that some of the e-payment channels in the country are Automated Teller Machines (ATM), Point of Sale Terminals (PoS), and Electronic Money Transfers, among others.
Nairametrics had earlier reported that e-payment transactions’ failure (which includes POS debit errors, cards’ rejection, and POS network glitches), poses setback and frustrate users.
In recent times, there has been a deluge of “dispense errors” and non-reversal of failed transactions at the Point Of Sale (POS) terminal and ATM.
On a typically bad day, as much as 30,000 transactions can become botched, even as bank customers’ accounts are debited, thereby leaving the financial institutions and their clients at loggerhead.
The Nigeria Inter-Bank Settlement System (NIBSS) should solve this
Among other functions, the core of NIBSS is to basically provide infrastructure for the automated processing and settlement of transactions between banks acting on their own account as regards deposit placements, Treasury Bills Transaction, and Naira settlement on inter-bank foreign exchange transactions.
Failed transactions on the rise
Data from the NIBSS website shows that as at the time of filing this report, the failure rate of the transactions on POS stood at 15.68%. For just a day, NIBSS recorded 137,132 failure rate. That is such a high rate of failure.
Speaking on this development, a bank official said the following:
“NIBSS has severally apologized to us and promised to step their system upgrade. I think the problem is more of system overload because the e-payment system has been widely accepted and used, which infrastructure may not have been projected adequately.
However, NIBSS spokesperson, Lilian Phido, said;
“it is an industry system glitch, which involves several stakeholders- banks, payment service providers and even the Central Bank of Nigeria.
“I cannot be here now to pass the buck or apportion blames. When issues like these come up, the tendency to apportion blames and not be responsible is there. The truth is that there are issues, but they are industry glitch. Everyone is needed to resolve it.”
Industry glitch? But POS transactions dropped by 13% in just two months
Data has shown that there was a decline in the volume and value of POS transaction so far in 2019. Nigerians spent the sum of N416 billion on Point of Sale (POS) transactions in between January and February 2019. This is according to data obtained from the NIBSS webpage.
According to the NIBSS data, N222.921 billion was spent in January 2019, while N193 billion was spent in the month of February. This represents a N29bn fall in value of POS transactions for February 2019, indicating a 13% decline when compared to the POS transaction for the previous month of January.
Also, the Volume of POS transactions declines
The volume of POS transactions for the past two months in 2019 shows that 53,941 transactions have been made. In January 2019, the volume of POS transactions stood at 28,162. This indicates a decline in the volume of POS transactions by 8% between January and February 2019.
When compared to 31,926 volume of POS transactions recorded for December 2018, it shows a decline in the volume of POS transaction in early 2019.
Meanwhile, the number of registered POS terminals inch up by 2%
NIBSS data has shown that the number of registered POS terminals increased by 2% between January and February 2019. In January, the number of POS terminals stood at 266,418, while it increased to 272,272 in February 2019.
The new figure for registered POS terminals shows that the number of POS terminals have been on the rise in Nigeria for the past years. For instance, in January 2017, the number of POS terminals stood at 134,906. And then it rose to 272,272 in February 2019, indicating a 100% increase in just two years.
Also, NIBSS deployed more POS terminals despite glitches
Despite the drop in the value and volume of POS transactions for the first two months of 2019, data shows the number of POS terminals deployed across the economy increased to 22,924 in February 2019 from 223,098 in January. This indicates a 1 percent rise in the number of POS deployed fro the review period.
As rightly noted, failed e-payment transactions is a perennial problem in the Nigerian financial sector. Whatever is the technical or structural deficiencies, Nigerians deserve efficient e-payment channels. As Nigeria has carried out several reforms to reposition its banking sector, an important component of the reforms cannot be left to suffer.
Also, the economy is being threatened by this persisting issue. And the CBN Need to do more to address it.
Official: Imo State is unemployment capital of Nigeria
According to NBS, 75.1% of the total employable people in Imo State are either underemployed or unemployed.
Data from the National Bureau of Statistics reveal Imo State, located in the South-Eastern part of Nigeria has the highest unemployment rate in the country.
In contrast, Anambra State is the state with the least unemployment in the country with 13.1% unemployment rate. The national average for the unemployment rate is 27.1%
Imo State has an unemployment rate of 48.7% as at the second quarter of 2020, by far the highest when compared to any other state in the country.
According to the data, 75.1% of the total employable people in the state are either underemployed or unemployed.
- Total number of employable people – 2.48 million
- Fully employed people – 618, 481
- Unemployed people in the state – 593. 347
- Underemployed – 656, 394
Imo State is largely a civil service town and has been unlucky with state governors over the last 20 years. Private sector jobs are hard to come by in the serene state with most industries setting up show in nearby cities like Aba, Port Harcourt, and Onitsha.
The city was once notorious for ritual motivated murders and kidnappings but has since overcome these challenges.
Akwa Ibom State is next on the list with an unemployment rate of 1.14 million people. The state’s underemployed population is about 551k people while the unemployment and underemployment rates combined is 66.9%.
The best: The state with the lowest unemployment rate in Nigeria is Anambra State with 13.1% out of the total working population of 2.25 million people. The state was 37 out of 37 states in the ranking of unemployment by state. About 1.9 million people in Anambra State are either fully employed (1.57 million) or under-employed (384k) in the state.
Lagos State, Nigeria’s commercial capital and where most graduates rush to for jobs currently has an unemployment rate of 19.5% and sits at 27 in the state by state unemployment ladder. The data shows about 6.8 million people make up the labour force population in Lagos State out of which 3.99 million people are fully employed and another 1.5 million people are underemployed. About 870k Lagosians who are employable did absolutely nothing.
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Concentration: In terms of the concentration of unemployed people, Rivers State came first with a whopping 1.7 million people out of jobs in the state. The state as a working population of 3.9 million. Rivers State unemployment rate is 43.7 and ranks third as the worst. 21.7 million Nigerians are unemployed.
Lagos State had the most employed persona with about 3.99 million people out of a total of 35.5 million.
Nigeria’s unemployment rate jumps to 27.1% as at 2020 Q2
Nigeria’s unemployment rate as at the second quarter of 2020 is 27.1% meaning about 21.7 million Nigerians remain unemployed.
Nigeria’s unemployment rate as at the second quarter of 2020 is 27.1% indicating that about 21,764,614 (21.7 million) Nigerians remain unemployed.
Nigeria’s unemployment and underemployment rate (28.6%) is a combined 55.7%. This means the total number of Nigerians who are unemployed or underemployed as at 2020 Q2.
This is contained in a recently released unemployment data report published by the National Bureau of Statistics. Nigeria’s unemployment rate was 23.1% in Q3 2018 confirming it increased by 4% points between then and the second quarter of 2020.
- The number of persons in the economically active or working-age population (15 – 64 years of age) during the reference period of the survey, Q2, 2020 was 116,871,186.
- The number of persons in the labour force (i.e. people within ages 15 -64, who are able and willing to work) was estimated to be 80,291,894. This was 11.3% less than the number persons in Q3, 2018. Of this number, those within the age bracket of 25-34 were highest, with 23,328,460 or 29.1% of the labour force.
- The total number of people in employment (i.e. people with jobs) during the reference period was dwellers, it rose to 31.5% from 22.8%, while the rate among urban dwellers rose to 23.2% from 58,527,276.
- Of this number, 35,585,274 were full-time employed (i.e. worked 40+ hours per week), while 22,942,003 were under-employed (i.e. working between 20-29 hours per week). This figure is 15.8% less than the people in employment in Q3, 2020
- The unemployment rate during the reference period, Q2, 2020 was 27.1%, up from the 23.1% recorded in Q3, 2018. The underemployment rate increased from 20.1% in Q3, 2018 to 28.6%.
- For the period under review, Q2, 2020, the unemployment rate among young people (15-34years) was 34.9%, up from 29.7%, while the rate of underemployment for the same age group rose to 28.2% from 25.7% in Q3, 2018. These rates were the highest when compared to other age groupings.
The data is coming after nearly two years when the last data was published. The bureau last published jobs data in the third quarter of 2018 citing funding as a major challenge.
- Nigeria’s youth remain the hardest hit by unemployment with over 13.9 million people aged between 15 and 34 years unemployed.
- The data also shows 7.6 million of this subset did nothing.
- Women also continue to bear the brunch of bad economy with about 12.2 million out of jobs from the 27 million currently unemployed.
- Graduates and post graduates combined made up about 2.9 million of the total Nigerians that are unemployed.
- In a surpising data, out of the 35.5 million Nigerians that are fully employed, 28.8 million of them never attended school (6.29 million) or did not have a tertiary education (22.5).
- In fact, most fully employed people in Nigeria with SSS (Senior Secondary School certificates) are a whopping 13.2 million.
COVID-19: Nigeria, 6 other African countries to start antibodies tests next week
These countries are the first set of countries to commit to the testing.
Nigeria and 6 other African countries will start conducting coronavirus antibodies tests as early as next week, as part of efforts to understand the extent of the outbreak on the continent.
Apart from Nigeria, the other African countries that will benefit from this include Sierra Leone, Zambia, Zimbabwe, Cameroon, and Morocco.
While making the disclosure in Addis Ababa, the head of the African Centres for Disease Control and Prevention, John Nkengasong, said that these countries are the first set of countries to commit to it.
Western countries have been using antibody tests to discover how many of their citizens have been infected by the coronavirus disease, with the expectation that will help them reopen their economies.
This new development is coming some days after the Nigerian Government started negotiations with prospective COVID-19 vaccine distributors to the country ahead of their availability.
The Vice President, Yemi Osinbajo, who kick-started the negotiation on behalf of the Federal Government, in a virtual meeting with representatives of the vaccine candidate, told the co-discussants that Nigeria must be given priority when COVID-19 vaccine is ready for distribution.
Nkengasong said that Africa has so far conducted 9.4 million coronavirus tests, a 10% increase over last week. These tests show whether people currently have the coronavirus disease.
Experts said that the low levels of testing in many countries mean that Africa’s infection rates could be higher than being reported.
He said that 25 African countries still have full border closures, with 23 imposing tests at entry points. He also stressed on the need to harmonize border testing and recognize certificates in order to facilitate travel.