Failed transactions drop e-payment transactions to N37trn in February

The Nigeria Inter-Bank Settlement System (NIBSS) says the value of e-payment transactions dropped to N37.67 trillion in February 2023.

This figure represents a 4.83 percent decrease from the N39.58 trillion that was recorded in January 2023.

In the February report released on Monday, NIBSS said e-payment gateways usage recorded a 41.29 percent month-on-month increase.

The agency added that cashless transactions were done 901.46 million times in February, compared to 638 million times in January.

However, despite the increase in usage due to the cashless policy and naira redesign initiated by the Central Bank of Nigeria (CBN), the total value of cashless transactions fell in February, thereby indicating an increase in the number of failed transactions.

Meanwhile, the NIBSS also announced cashless transactions from the Nigeria Instant Payment System (NIPS) and Point of Sales (POS) terminals.

It said the total instant payment transactions in February fell to N36.79 trillion compared to the N38.77 trillion recorded in January.

Also, the report showed that despite the scarcity of naira witnessed in the month, the value of PoS transactions grew from N807.16 billion in January to N883.45 billion in February.

“Mobile transfers, which serve as the primary payment gateway for many Nigerians, soared by 69.87 percent from 108.14 million times in January to 183.69 million times in February,” the report said.

“While usage grew significantly, transaction value only grew marginally by 7.88 percent from N2.37 trillion in January to N2.56 trillion in February.”

Meanwhile, the naira redesign had caused significant controversy that trailed the implementation by the CBN since October 2022, when the policy was introduced.

After the deadline for the validity of the old N200, N500, and N1,000 notes, several states sought the supreme court’s intervention in extending the usage.

In its final judgement on the matter, the apex court ruled that the old notes should continue as legal tender until December 31, 2023.

Succumbing to pressure to obey the court order, on Monday, the CBN ordered banks to dispense and accept to the old notes, as they remain legal tender till December 31, 2023.