Value Of PoS Transactions Hits N18.10trn In Five Years
The value of transactions through Point of Sale (PoS) terminals in the country rose to N18.10trillion between 2017 and 2021, latest data released by the Nigeria Interbank Settlement System Plc (NIBSS) shows.
New Telegraph’s analysis of the NIBSS’ data indicates that the transactions maintained an upward trend in the last five years jumping by 356.27 per cent to N6.43trillion in 2021 from N1.41trillion in 2017.
The breakdown of the data shows that the value of transactions through PoS terminals, which stood at N1.41trillion in 2017, increased by 64.76 per cent to N2.32trilion in 2018.
In 2019, total value of PoS transactions increased by37.97per cent to N3.21trillion, while in 2020 it rose by 47.50 per cent to N4.73trillion.
Last year, the value of PoS transactions, increased by 36.01 per cent, to hit N6.43trillion. This means that between 2017 and 2021, POS transactions reached N18.10trillion.
In a recent report, Financial Derivatives Company Limited (FDC), which had projected a total value of N6.29 trillion for PoS transactions in 2021, predicted that the figure is likely to increase to N7.83trillion this year.
Analysts attribute the surge in PoS transactions to the growing adoption of electronic payment (e-payment) channels such as PoS terminals, NIBSS Instant Payment (NIPs), Mobile Interscheme and NIBSS Electronic Transfer (NEFT), especially in the last few years.
Indeed, in its “Instant Payments – 2020 Annual Statistics,” the NIBSS stated: “Covid-19 changed the e-payments landscape, accelerating the adoption of instant payments as more people transitioned to electronic channels for funds exchange in the wake of government imposed lockdowns.”
New Telegraph recently reported that with more Nigerians adopting e-payment), there has been a surge in the number of deployed POS terminals in the country.
Data obtained from NIBSS, for instance, shows that the total number of deployed PoS terminals in the industry increased from 155.462 at the end of December 2017 to 217.283 and 303.162 at the end of December 2018 and December 2019 respectively.
It also indicates that the total number of PoS terminals deployed in the industry jumped by 99.33percent to 915.519 in December, last year, from 459.285 in December 2020.
Analysts further note that the Central Bank of Nigeria’s (CBN) efforts to boost financial inclusion, which led it to introducing the Agent Banking system in 2013, under which, financial institutions and mobile money operators could appoint third parties as agents, equipped with PoS terminals, to provide financial services on their behalf to members of the public, has helped to increase the deployment of the terminals.
The banking agents, who are known as PoS operators in these parts, have been recording a boom in their business especially since Covid-19 spread to Nigeria in February 2020. In order to cash in on the increased adoption of e-payment channels, Tier 1 lenders, such as First Bank of Nigeria Ltd, Zenith Bank and Access Bank, reportedly placed orders for a total of 100,000 PoS Terminals for their Agent Banking business.
In addition, analysts attribute the rapid deployment of PoS terminals to the Shared Agent Network Expansion Facilities (SANEF) initiative unveiled by the CBN, in collaboration with deposit money banks (DMBs) and licensed mobile money operators, in March 2018.
Under the initiative, the financial institutions planned an aggressive roll out of 500,000 agent network that would use PoS terminals to offer basic financial services, such as Cash-in, Cash-out, funds transfer, bill payments, airtime purchase, government disbursements as well as remote enrolment on BMS Infrastructure (BVN) to an estimated 50 million Nigerians.
Speaking at the event, the Chairman, Body of Banks’ Chief Executive Officers, and Managing Director/Chief Executive Officer, Access Bank Plc, Mr. Herbert Wigwe, said: “This agreement reflects our commitment to aggressively pursue the CBN 2020 Financial Inclusion target in an integrated way with minimal systemic risk to the financial system. This initiative will also generate 500,000 new jobs over the next two years.”