According to data recently released by the Nigeria Inter-Banking Settlement Systems (NIBSS), registered mobile users in Nigeria conducted mobile transactions worth N2.37 trillion in January 2023, marking a 125% increase compared to the same period the previous year.
The NIBSS is owned by the Central Bank of Nigeria and all licensed Deposit Money Banks, and is responsible for managing inter-bank payments to eliminate potential obstacles with inter-bank funds transfers and settlements.
This rise in mobile transactions is occurring amid a scarcity of physical cash in the country, caused by the recent redesign of some N200, N500, and N1000 naira notes, Investors King reports.
The report also showed that the volume of NIBSS Instant Payments, a popular payment method in Africa’s largest economy, rose by 55% year-on-year to 541.64 million, compared to 348.4 million transactions in January 2022.
In October 2022, the Governor of the Central Bank of Nigeria announced plans to redesign the N200, N500, and N1,000 notes, which he stated were necessary to reduce the amount of physical cash in circulation and support the country’s push towards a cashless economy.
The cashless policy limits daily over-the-counter cash withdrawals to N500,000 for individuals and N5 million for corporate organizations, while daily ATM withdrawals are limited to N20,000 per person.
However, following the deadline for returning old cash, many Nigerians have expressed frustration over the unavailability of the new redesigned notes.
Source: Investors King