The landscape of digital payments in Nigeria has witnessed significant growth, as evidenced by the recent figures from the Nigeria Inter-Bank Settlement System (NIBSS). Within just seven months, the number of registered Point-of-Sale (PoS) terminals soared to 26.54 million, marking a notable increase of 22.59% from 21.65 million reported in July 2023. This surge signals a shift towards the adoption of cashless payment systems, fueled by various governmental policies aimed at reducing cash dependency within the economy. The positive response from both merchants and consumers highlights a growing acceptance of digital payment channels as vital components of routine financial transactions.
The data reveals an impressive trend in the registration of new PoS terminals over the initial months of 2024. January saw a dramatic increase, with 3.44 million new terminals added, a stark 48.5% rise from the 2.32 million registered in January 2023. This momentum continued into February and March, with registrations increasing by 50.9% and 47.0%, respectively. The uptick in terminals—from 2.39 million to 3.61 million in February and from 2.54 million to 3.73 million in March—illustrates a robust movement towards adopting these digital transaction methods. Such figures are indicative of a broader trend where merchants are increasingly investing in electronic payment infrastructures to meet consumer demands.
As the year progressed, the growth trajectory of new PoS registrations shows no signs of slowing down. The data continued to reflect significant increases in the subsequent months, with April’s figures reaching 3.85 million, a growth of 26.1% from the previous year’s 3.05 million. This pattern persisted into May and June, where 3.88 million and 3.97 million new terminals were registered, signifying year-on-year increases of 22.4% and 23.5%, respectively. By July, the number of newly registered terminals reached 4.06 million, up from 3.27 million in July 2023, which constitutes a remarkable 24.0% increase. This sustained growth across several months indicates a thriving environment for PoS transactions amidst broader digitization efforts across the Nigerian economy.
In response to this burgeoning trend, collaborations have also emerged to enhance the efficiency and ease of PoS transactions throughout Nigeria. The partnership between Zone Payment Network Limited, formerly known as Appzone, and NIBSS plays a crucial role in streamlining electronic transaction processes and addressing the needs of a rapidly digitizing marketplace. As the digital payment ecosystem matures, such collaborations are essential for ensuring that transaction platforms remain robust, secure, and capable of handling the increasing volume of operations smoothly.
The financial implications of this transition to electronic payment systems are profound. In July 2024, Nigerians reportedly spent an unprecedented N89.50 trillion through electronic channels—marking the highest monthly transaction value recorded on the NIBSS Instant Payment platform. This figure represents an astounding 89% increase when compared to N47.39 trillion from the same month in the previous year. The consistent upward trend in electronic spending is a clear indication that consumers are more willing to embrace digital payment options, facilitated by the infrastructure provided through PoS systems and other electronic transaction platforms.
Overall, the trajectory of digital payment adoption through PoS terminals in Nigeria reflects a significant transformation in the financial landscape of the nation. The NIBSS’s data indicates that the total value of electronic transactions in Nigeria from January to July 2024 reached N566.3 trillion, edging close to the record N600 trillion achieved in 2023. Such milestones not only underscore the efficiency of digital transactions but also highlight the increasing reliance of Nigerians on technology-driven solutions in their day-to-day financial interactions. This ongoing evolution suggests a promising future for cashless transactions, which are expected to further penetrate various sectors of the economy in the months to come.
