The Nigeria Inter-Bank Settlement Systems (NIBSS) released a report pitching Nigeria’s electronic transactions in the first seven months of the year at N204.5 trillion. This figure represents a 40% increase in e-transactions from the N145.8 trillion recorded in the first seven months of 2021.
The NIBSS report stated that the increase in electronic transactions in the country is a result of the rise in the volume of completed deals during the months under review. This means that to complete a transaction, Nigerians are gradually embracing the cashless policy initiated by the Central Bank of Nigeria (CBN) in 2012.
Cashless policy in Nigeria
The CBN pegged a service charge on daily withdrawal above five hundred thousand Naira or N500,000.00 for individuals and three million Naira or N3, 000,000.00 for corporate bodies. While the CBN administered 3% service charge on withdrawals in excess of N500,000.00, it administered 5% on withdrawals in excess of N3, 000,000.00. The CBN enforced the cashless policy to reduce the volume of cash in circulation and not to eliminate the use of cash.
What you should know
The NIBSS in 2011 developed the NIBSS Instant Payments (NIP), a funds transfer platform, to guarantee instant credit to the beneficiary of a transaction. This financial technology is an account-number-based, online-real-time Interbank payment solution.