Good Morning Nigeria: E-payment growth prospects still strong
​E-payment growth prospects still strong
Data from the CBN’s latest Annual Report (2014) reveal that the volume of electronic payments surged by 41% y/y to 456 million while the value increased by 39% y/y to N4.4trn (US$22.1bn). The CBN commentary attributed the significant rise in e-payment transactions to improved public awareness on the back of sensitisation campaigns as well as increased consumer confidence in the utilisation of e-payment channels. A recent study conducted by Moody’s Analytics showed that e-payment usage contributed N127bn (US$638m) to Nigeria’s GDP over the 2011-2015 period.
- The Moody’s study also showed that increased use of e-payment raised household consumption by an average of 0.2% per year across the countries covered.
- ATM remained the leading channel for transactions, accounting for 88% of the total volume in 2014.
- According to the Nigerian Communications Commission, internet subscriptions stood at 96 million in January 2016. This translates to internet penetration of 56%. That said, we suspect the low volume of transactions recorded on the web (1.2% of the total) in 2014 was partly due to concerns surrounding fraudulent activities.
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