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PoS transactions hit N3.20 trillion in 2019, as stamp duty rip-off remains

The value of transactions carried out using Point of Sale (PoS) channel in Nigeria hit N3.20 trillion in 2019.



PoS transactions hit N3.20 trillion in 2019, as stamp duty rip-off remain , Charges: Current accounts held drops by 4.5 million, as PoS transactions hit N373 billion, Digital payments sustains surge, affirms growth prospects

The value of transactions done across Point of Sale (PoS) channel in Nigeria hit N3.20 trillion in 2019. This is disclosed in the latest data released by the Nigeria Inter-Bank Settlement System Plc (NIBSS).

According to NIBSS, the total value transactions increased from N2.32 trillion in 2018 to N3.204 trillion by the end of 2019. This implies that the value of transactions from PoS machines rose by N882.03 billion (37.9%) in one year.

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Breakdown of PoS transactions 

Analysis of the NIBSS data shows that in January 2019, N222.9 billion worth transactions were carried out through the channel in January. However, in February, there was a big drop in the value of PoS transactions to 193.4 billion – the lowest recorded in the year.

  • On the other hand, the highest value of PoS transactions was recorded in December (N372.68 billion). This means between January and December 2019, PoS transactions rose by 67%.
  • Similarly, the volume of PoS transactions jumped in the year. In 2019, the volume of PoS transactions rose to 438.6 million, up from 285.8 million in 2018. This means PoS transactions in terms of volume rose by 53.4% (152.7 million).
  • Also, the highest volume of PoS transactions was recorded in December, with a total of 46.13 million transactions. However, the volume of transactions dropped in February, representing the lowest (25.7 million) in the year.

Mobile transfers, NIP transactions rose 

The use of interbank instant payments on USSD platforms by bank customers received a significant boost in 2019, as transactions through NIBSS Instant Payment (NIP) hit N105.2 trillion, up from 80.4 trillion in 2018. This means transactions through NIP rose by 30.8% (24.79 trillion) in one year.

The highest value of transactions recorded through NIP was December while the lowest was recorded in February.

On the other hand, further analysis shows that in 2019, transactions done through mobile transfers (Mobile Inter-scheme Transactions) hit N828 billion.

According to the NIBSS data, mobile transfers done in 2019 represented a 536% rise compared to N292 billion recorded in 2018. The biggest mobile transfer recorded was done in December (N148.9 billion), compared to N26.8 billion in January 2019.

[READ MORE: Oil marketers demand exemption from N50 PoS charge)

Stamp duty, USSD charges linger 

Several issues continue to threaten the use of e-payment platforms in Nigeria. Prominent among the issues are the N50 stamp duty charge on transactions above N1000, N4 on bank transfers using USSD code, among others.

Nairametrics recently reported that the Federal Government of Nigeria had stopped the additional N50 charge currently being imposed on transactions carried out through Point of Sales (PoS) Terminal.

According to a directive recently issued by the Federal Competition and Consumer Protection Commission (FCCPC), PoS transactions charges imposed by the Central Bank is to be borne by businesses. As such, passing it on consumers is counterproductive, burdensome and inconsistent with the underlying cashless policy of the Central Bank of Nigeria.

PoS agents, operators kick against N50 charge, seek policy reversal,, Oil marketers want exemption from N50 PoS charge, say it’s not profitable for petrol dealers  

Meanwhile, despite the directive by the government, some malls and outlets still continue to charge the N50 stamp duty. Earlier, Nairametrics reported that merchants in some of Nigeria’s largest retail outlets included the N50 stamp duty in their PoS machines automatically. This followed the widespread adoption of the N50 charge on customers seeking to pay their bills using debit cards.


Most filling stations in Lagos, including large supermarkets such as SPAR and Grand Square are already charging their customers the stamp duties of N50 per completed set of transactions paid using the PoS.

Also, the issue of N4 charges on the use of USSD code remains unresolved. Despite concerns that this may stifle the financial inclusion policy of the Central Bank, Bank Chief Executive Officers (CEOs), the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) are reportedly ready to meet on the dispute surrounding the charges for use of Unstructured Supplementary Service Data (USSD) in the country.

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

1 Comment

1 Comment

  1. Jagaban

    January 24, 2020 at 4:23 am

    I follow this blog quite often but I must confess, retail outlets charging an additional 50 naira is the best thing that can happen to the economy if this regulation must prevail. For one, we must understand that consumers at the end of the day will be the bearer of the cost, that’s if the businesses must remain in business. Now if we agree that consumers must bear the cost, the model of cost bearing (either direct or indirect) must be left at the prerogative of the retailers. A retailer can look at its sales book and determine that people buy three items on the average and decide to increase its prices by 20 per item to cover the increment. Now project this for those that buy in bulk. 20 naira in multiple places, creating increased profit for the business and reducing spending power for the consumers. Whereas if people just pay the freaking 50 naira on all their purchases no matter the cost, the final cost would be much cheaper for the consumers.

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Dangote Sugar, sweet in more ways than one

Significant growth in gross revenue was driven largely by sale to Nigerian Bottling Company Limited and Seven-Up Bottling Company Limited.



Quick take: Sustained cost pressure weighs on profit, Dangote Sugar Refinery: Revenue recovers but cost pressures remain

By refining capacity, Dangote Sugar Refinery Plc (DSR Plc) is acknowledged as the largest Sugar Refinery in sub-Saharan Africa and one of the largest in the world. With up to 60 percent market share, it is also clearly, the most dominant player in the Nigerian sugar market.

DSR Plc recently released its audited Financial Statements for the year ended December 31, 2020 and overall and year-on-year group performance results were very good.

Despite the impact of the Covid-19 induced lockdown which curtailed distribution across the country and resulted in decreased revenues from income generated from freights, gross revenues increased by over 33 percent year-on-year to ₦ 214.3 billion. The significant growth in gross revenue was driven largely by a rise in revenue from the sale of its 50kg sugar, with the two main customers being the Nigerian Bottling Company Limited and Seven-Up Bottling Company Limited who operate principally from Lagos.

READ: Dangote Sugar completes acquisition with Savannah Sugar Company Limited 

Year-on-year, gross profit increased by over 40 per cent to ₦ 53.75 billion, Profit before tax increased by almost 53 per cent to ₦ 45.62 billion, and Profit after tax increased by 33 per cent to ₦ 29.78 billion.

Notwithstanding the good result, the group operating results showed some issues and headwinds. First, during the year, DSR Plc wound up Dangote Niger Sugar Limited (one of four companies that had been set up to acquire large expanse of land and locally grow sugarcane as part of its concerted backward integration project). The winding-up was sequel to continued community dispute over land acquired in Niger State for this purpose. This winding-up event cost DSR Plc approximately ₦ 100 million.

Second, there continues to be a heavy reliance on Lagos for its gross revenues as revenues generated from Lagos State increased significantly from circa 33 per cent at the end of 2019 to over 50 per cent by the end of 2020. The share of the Lagos segment in gross revenue thus continued to grow and currently represents a significant market concentration risk for DSR Plc.

READ: Nigeria’s biggest oligopolies: Who are the real beneficiaries?

Third, provision for impairment on financial assets or in simple terms, receivables that are unlikely to be collectable, also trended upwards from ₦ 1.3 billion in 2019 to ₦ 1.45 billion by end of 2020 with net financing expenses also rising significantly from ₦ 516.2 billion in 2019 to ₦ 1.92 billion by the end of 2020. This rise in expenses was largely driven by a significant rise in exchange losses incurred in the ordinary course of business, rising from about ₦ 7 million in 2019 to over ₦ 1.57 billion at the end of 2020.

Finally, administrative expenses represented mainly by employee salaries grew year-on-year by over ₦ 1.2 billion.

With the recent reopening of land borders, we expect that revenues and margins will become squeezed as sales and production volumes become constrained by the influx of largely smuggled, lower quality, and much cheaper sugar and its substitutes. DSR Plc’s sugar refinery is also strategically located very close to the Apapa port and its logistics operations, distribution of raw materials and delivery of finished goods will continue to be impacted by the infamous Apapa Traffic Gridlock and road diversions/closures around the axis. Although the effort of Lagos state and the recent introduction of the electronic call up of truck by the NPA has eased the issue, still, it needs to be watched closely.

READ: Dangote Sugar yearly revenue surge by 33%, announces a dividend of N1.50

Earnings per share at the end of 2020 was ₦ 2.45 (2019: ₦ 1.87; 2018: ₦ 1.85)

Subject to approval at its forthcoming Annual General Meeting, DSR Plc board of directors have proposed a dividend of N1.50k per ordinary share (2019: ₦ 1.10k, 2018: ₦ 1.10k).


This performance is sweet in more ways than one.

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CBN “Naira 4 Dollar Scheme” Explained

What the CBN’s Naira 4 Dollar scheme means for your money.




In what appears to be an attempt to incentivize dollar remittances by all means possible, the Central Bank of Nigeria (CBN) released a circular to Deposit Money Banks (DMBs), International Money Transfer Operators (IMTO), and the General Public, advising that remittances paid into a bank account will attract an additional credit alert for every USD$1 received!

Yes, you read that correctly. The CBN will facilitate a special additional credit alert of N5 for every USD$1 received. In other words,

  • if someone sends you $10,000, you get an additional special credit alert for N50,000.
  • If someone sends you $100,000, you get an additional special credit alert for N500,000.

Who is eligible?

To be eligible, the diaspora remittances need to be processed and received from one of the registered IMTOs and funds received into a Bank account operated by the DMBs. (So, if you are receiving funds via Crypto sorry you are not eligible).

Additionally, the circular says this “incentive runs from Monday 8th March 2021 to Saturday 8th May 2021″. So, if you have plans to receive dollars, you can plan accordingly.

The circular is not clear how exactly the commercial banks will know which account to pay the extra special credits into. Although, that may be a question diaspora funds recipients will need to ask their DMB accounts officers to clarify for them.

How will this be funded?

The circular notes that the “CBN shall through commercial banks, pay to recipients the N5 incentive for every USD$1”. In other words, it is the CBN funding the cost of this special extra credit.

  • One would argue that given the costs of alternative incentives to attract dollars such as the special OMO window for FPI, this may be a cheaper alternative for the CBN.
  • But we will need to see the volume of expected remittance to be certain of that. Nigeria attracts about $5billion per quarter in remittances and only trails oil in terms of foreign earnings.

Why this matter to Nigerians?

Following the collapse of US Dollar inflows into the country, the CBN initially tried to balance its current account deficits and avoid an official devaluation by tackling FOREX demand (Think ban of 41 items, etc).

Finally, this short-term Naira-4-Dollar scheme will not be called an official Naira Devaluation. But a question is what do we call the new short-term price of N412.50 + N5.00? Maybe we can call it Naira Modulation.


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