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Nigeria records N4.6 trillion worth of POS transactions in 7 months

POS transactions in Nigeria jumped to N4.6 trillion in the first seven months of 2022, a 29.3% increase compared to N3.56 trillion recorded in the corresponding period of 2021 and a staggering 90.3% increase when compared to the same period of 2020.

This is according to data culled from the Nigeria Inter-Bank Settlement System (NIBSS) between January and July 2022. In the same vein, the volume of transactions rose by 25% year-on-year to 679.8 million in the same period from 543.7 million recorded in the previous year.

The increase in both the volume and value of POS transactions is an indication of how Nigerians are increasingly leaning away from cash payments in lieu of electronic transactions and reflects the growth of online shopping in Nigeria’s commercial space.

Notably, the volume and value of cheque transactions dropped in the same period. Specifically, a total of N1.83 trillion was recorded through cheques in the 7-month period across 2.4 million transactions a decline compared to the comparable period of 2021.

Highlights

What is driving growth?

There are several contributing factors to the increasing adoption of POS as a means of transaction by Nigerians. Some of these include:

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Nairametrics reported that transactions worth over N204.5 trillion were performed electronically in Nigeria between January and July 2022 through the NIBSS Instant Payment platform (NIP), representing a 40% increase compared to N145.8 trillion recorded in the same period of the previous year.

Also, the NIP volume rose by 42% year-on-year to 2.7 billion transactions in the same period from 1.9 billion. This is a further indication of increased adoption of electronic payments as opposed to cash and more traditional ways of payments.

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