The country’s declining e-payment market for the month of September has been blamed on problems encountered by some banks and the weakening national economy.
The Nigerian Inter-Bank Settlement Systems (NIBSS) Instant Payment Platform (NIP) fell by N396.18 billion, or 1.19 percent, to N32.84 trillion in September 2022 from the N33.2 trillion reported by NIBSS in August 2022 due to bank network issues among other factors.
According to the most recent data from the NIBSS, there were N271.56 trillion worth of electronic transactions in the first nine months of 2022, up 26% from the N215.76 trillion reported in the first nine months of 2021.
The NIBSS NIP is a real-time online Inter-Bank payment solution created by NIBSS and Banks, Other Financial Institutions (OFI) customers’ preferred funds transfer platform, and it ensures that the recipients receive their money immediately.
The fall in electronic transactions in September, according to observers, was caused by worsening macroeconomic conditions.
Mr. Rotimi Fakayejo, a financial specialist, linked the drop in Instant Payment Platform (NIP) transactions in September to bugs experienced by some banks, highlighting how the departure of Information Technology (IT) workers generated disturbance in the banking sector’s regular business operations.
He continued by saying that the recent rise in electronic transactions is evidence that Nigerians, particularly the youth, are adopting the Central Bank of Nigeria’s cashless strategy (CBN).
Mr. David Adonri, vice president of Highcap Securities Limited, added:
The marginal decline in electronic payment for September 2022 is because of worsening macroeconomic conditions which eroded the quantum of financial transactions by businesses and households.
He continued by saying that the financial stability of all economic sectors has been badly compromised by the rising inflation, which has led to a decline in financial activity.
The N33.2 trillion report in August 2022 was the highest e-payments amount ever reported since 2018, according to NIBSS data.
This represents a 13.3% increase from the reported total in August when compared to the N29.3 trillion recorded in July.
According to NIBSS, the decrease in recorded e-payment value was a result of a decrease in deal volume during the month under consideration.
In September, the NIP volume fell to 438.17 million, a 2.2% decrease from the 448.13 million reported in August.
The value of cheque transactions also decreased in September, falling 8.52% to N265.94 billion from N290.69 billion in August as electronic transactions decreased.