Naira scarcity pushes PoS transactions up by 40% in January

Data from the Nigeria Inter-Bank Settlement System (NIBSS) shows that Point of Sales (PoS) transactions rose to N807.16bn in January 2023, pushed up by naira scarcity caused by the Central Bank of Nigeria’s currency redesign.

The figure represents a 40.69 per cent year-on-year increase from the N573.72bn transactions that was done in January 2022.

According to the new data, total cashless transactions in Nigeria rose by 45.41 per cent y-o-y to N39.58tn in January 2023.

The NIBSS monitors cashless transactions through the Nigeria Instant Payment System and Point of Sales terminals. Total NIP transactions for the period rose by 45.52 per cent y-o-y from N26.65tn as of January 2022 to N38.77tn as of January 2023.

The usage of electronic channels for transactions grew by 45.50 per cent y-o-y from 438.48 million times to 638 million times in the period under review. According to the NIBSS, there were 955,234 deployed PoS terminals in the country as of January 2022.

In 2022, the CBN announced a Naira redesign policy, withdrawal limits, and encouraged Nigerians to adopt electronic forms of transactions.

Implementation of the policy has been postponed from its initial January 31 deadline to February 10. This new deadline is now subject to a Supreme Court judgement that has restrained the Federal Government from implementing its deadline.

Since the policy was announced, Nigerians have been subject to long ATM queues, buying of the naira, failed transactions, and problems with banks’ mobile applications.

Banking halls across the country have emptied as frustrated customers resort to other means of cash withdrawal. Riots have also broken out in various states of the country over naira scarcity, and angry Nigerians have attacked banks in some locations.