Value of NIBSS Instant Payment rises to N238.7trn in 7 months —Report

INDICATIONS have emerged that the value of transactions processed through Nigeria Inter-Bank Settlement System (NIBBS) Instant Payment (NIP) between January and August increased by 42 per cent year-on-year (y/y) to N238.7 trillion.

This is according to a recent data from the Nigeria Inter-Bank Settlement System (NIBBS) which also indicated that the total value of electronic transactions recorded under the NIBSS Instant Payments (NIP) increased by 13 per cent month-on-month (m/m) and 50 per cent y/y to N33.2 trillion in August 2022.

The mobile USSD channel allows all Nigerian banks access to the NIP payment platform. As such, the stellar growth registered by electronic payments can be linked to the growing penetration of mobile telephony across the country, particularly the rapid growth of 4G broadband networks.

Analysing the data, experts from FBNQuest, in their latest report, noted that although NIP transactions typically account for over 90 per cent  of electronic payment transactions due to the ease of use and ubiquitous nature of mobile phones, the data also showed considerable growth for other electronic transaction channels.

For instance, transactions processed through the mobile (inter-scheme) channel increased 156 per cent y/y to N1.8 trillion in August, thereby taking the year-to-date value to N11.1 trillion or a growth of 158 per cent y/y.

Transactions made via point-of-sale (PoS) channels according to the report, increased by 41 per cent y/y to N711 billion in August.

“On a cumulative basis, for the eight months to August, the value of transactions processed through PoS channels increased by 31 per cent y/y to N5.3 trillion.

The e-bills pay platform, which makes it easier to pay bills, saw growth of 36 per cent y/y N263 billion in August, and almost N2.0 trillion (+33 per cent y/y) over the January to August ’22 period.

“Payments through cheques are increasingly getting out of favour. Payments through the channel were flat ytd at N2.1 trillion,” the report stated.

Prospects for electronic payment channels are being enhanced by the continued push to deepen broadband penetration and the ongoing displacement of cash-based commerce with e-commerce, which has accelerated at a very rapid pace.