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Business News

Nigeria’s e-payment transactions fall by N29billion as transactions failure deepens

Transactions failure on e-payment platforms in Nigeria has become a source of concern to thousands of users.

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NIBSS POS

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.

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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;

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“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.

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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.

 An overhaul?

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.

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Samuel is an Analyst with over 5 years experience. Connect with him via his twitter handle

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Business News

BUA Group, French company announce progress in 200,000 bpd refinery project

This is coming about 6 months after both firms signed an agreement for the supply of process technologies and the design of the facility.

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The BUA Group and Axens, a French-based petroleum technology company, have both signed a progress acknowledgement statement for the proposed BUA multi-billion-dollar integrated 200,000 barrels per day refinery in Akwa Ibom State.

This is coming about 6 months after both firms signed an agreement for the supply of process technologies and the design of the facility.

BUA, while making the disclosure in a statement on Wednesday, April 14, 2021, said that the French President, Emmanuel Macron, commended its Chairman, Abdul Samad Rabiu, for his commitment to developing lasting relationships between French and Nigerian businesses.

READ: What the $1.5 billion Port Harcourt refinery deal means to us – Maire Tecnimont

The statement said that this came as the French Minister for Foreign Trade and Economic Attractiveness, Franck Riester, paid a visit to the BUA Group Headquarters in Lagos where he handed over a personal invitation from Macron to Rabiu to attend the Choose France Summit in June in Paris representing business leaders from Nigeria and Africa.

The French minister also witnessed the signing of a progress acknowledgement statement between BUA Group and Axens of France for the proposed refinery project, according to the statement.

The statement also said that during the visit, it was announced that the BUA chairman had been appointed Chairman of the France Nigeria Investment Club.

READ: FG reacts to reports of revoking 32 refinery licenses

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While thanking the minister and Macron for their unwavering support in bringing BUA and French businesses together, Rabiu said BUA had so far initiated partnerships and had developed personal relationships with a few French businesses, including Axens.

He expressed confidence in the quality of expertise and technical know-how of the French companies BUA had partnered with.

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Rabiu pointed out that the BUA refinery would reduce the huge cost of transporting Nigerian crude offshore, refining it and bringing it back into the country when fully operational.

READ: Abdulsamad Rabiu’s stake in BUA Cement has increased by N1.2 trillion in value since listing in 2020

He said that the choice of Akwa Ibom for the refinery was due to the huge availability of raw materials and its proximity to export petroleum products to regional countries.

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The President of Axens, Jean Sentenac, in his statement, said he was pleased that the project was advancing on schedule and expressed delight for the very good cooperation between all the involved parties, reiterating the commitment of Axens in delivering the BUA Refinery Project on time and with the highest standards.

READ: FG to open LPG distribution channels in all local governments

Bottom line

The completion and take-off of the refinery owned by the BUA Group would come as a huge boost for the Federal Government’s effort to stop the importation of refined petroleum products, ensuring that the country becomes a net exporter of these products.

This will also help to conserve the scarce foreign exchange as the completion and take-off of the Dangote refinery and other similar refinery projects will help ensure self-sufficiency in the country.

The BUA Group, just a few days ago, was listed as one of the companies with an active refinery license from the Department of Petroleum Resources (DPR).

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Coronavirus

Covid-19: Nigeria records over 1 million vaccinations

The NPHCDA has stated that it has vaccinated 1,043,737 persons, which is 51.9% of the targeted total proportion.

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Covid-19: First world nations oppose waiving intellectual rights for vaccine development

The National Primary Health Care Development Agency has disclosed that Nigeria, as of April 14th, 2021, had vaccinated 1,043,737 persons, which is 51.9% of the targeted total proportion.

The NPHCDA revealed this in a statement on Wednesday evening.

Kwara State leads in the vaccination percentage of target reached, at 110% with 30,708 vaccinations.

READ: Only 10 countries have administered 75% of all vaccinations – UN Secretary-General

Meanwhile, Lagos State has conducted the most vaccinations so far at 192,061 representing 75.7% of its percentage target reached so far.

The Federal Capital has vaccinated 40.1% of its target so far at 44,098 and Kogi State has conducted the least number of vaccinations at 5,568.

READ: Covid-19: Pope Francis set to get vaccinated, says its ethical

In case you missed it

Nairametrics reported earlier that the Nigerian government aimed to get 70 million Johnson and Johnson single-shot COVID-19 vaccines after the African Union recently announced a deal with the drugmaker for 400 million vaccine doses.

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