Figures from the Nigerian Inter-Bank Settlement System (NIBSS) reveal that a total of ₦80.4 trillion, up from ₦56.17 trillion in 2017, was moved through the NIBSS Instant Payment (NIP).
Launched in 2011 as an online-real-time inter-bank payment solution, NIP has proven to be an effective means of transferring funds over the years with wide adoption by banking customers in the country. From ₦19.92 trillion in 2014, the total value transaction through the channel grew by 303% in four years.
While the value and volume of transactions over NIP have been growing over the years, that of the NIBSS Electronic Fund Transfer (NEFT) has been on a decline. Unlike NIP transactions that are instant, NEFT is a 24-hour credit transfer system. Which means a recipient won’t get the value until after a day of initiating the transaction.
From ₦12 trillion in 2015, the value of NEFT dropped to ₦11.6 trillion in 2018.
Another channel that witnessed a significant growth is the value of web payments which grew from ₦184.6 billion in 2015 to ₦404.6 billion in 2018, recording a little over hundred percent increase in three years.
But for eBillsPay, it’s a different scenario. While there was an increase in the volume of e-BillsPay, it recorded a decline in the total value for 2018. With a total value of ₦550.75 billion as of 2017, it dropped by ₦50 billion in 2018 while volume increased from 900,000 to 1.1 million.
With 8.5 million customers, mobile money operators did ₦1.8 trillion in 87.1 million transactions in 2018.
Channels in the Nigerian payment system that recorded less than a trillion naira for year 2018 include individual cheques processed, eBillsPay and web payment. Every other channel had over a trillion naira in total value with NIP having the highest at ₦80.4 trillion in 729.4 Million transaction counts.
NEW REPORT: Nigerian startups raised $17.6m in Q1 2019, 8.5% higher than they did in Q1 2018. Find out more in the latest quarterly edition of the Nigerian Startup Funding Report here.
On the 1st of June 2019, Techpoint will host over 3,000 leading experts, enthusiasts, innovators, entrepreneurs, career professionals, and policymakers in Lagos at #TechpointInspired, the largest tech conference in West Africa, where issues Future of Work, AI & Robotics & Blockchain and many more will be discussed Techpoint Inspired. Register now.
There will be a private dinner for Speaker and VIP holders on the 2nd of June. Get a ticket now