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Volume of mobile payments shoots up by 258.6%

By on February 24, 2014

As the Nigerian banking public grapples with the change of leadership at the Central Bank of Nigeria following the suspension of Mallam Sanusi Lamido Sanusi, latest data from the bank showed a significant rise in the volume of mobile payments in the first half of last year.
According to the apex bank’s Economic Report, posted on the bank’s website on Friday, the volume of mobile payments increased by 258.6 per cent to 5,982,225 in the first half of 2013 over the level in the second half of 2012. Also, the value rose by 103.1 per cent to N51.8 billion over the level in the preceding period.
The development was due to the licensing of additional eight mobile money operators in the second half of 2012, which became operational in the first half of 2013.

Similarly, the volume and value of cheques cleared raised by 11.1 and 19.1 percent to 21,096,075 and N11, 492.5 billion in the first half of 2013 over the levels of 18,988,822 and N9, 653.5billion in the second half of 2012, respectively. The increase was attributed to the improvement on the use of cheques for payments, especially with the extension of the N150, 000.0 limit on encashment of 3rd party cheques nationwide.
The report stated that the value of electronic payments rose by 25.6 per cent to N1,416.1 billion in the period under review over the level in the second half of 2012, while the volume declined by 27.2 per cent to 146,961,511 from 201,793,172 in the preceding period.
“A breakdown of the e-payment channels for the review period indicated that ATM remained the most patronised, accounting for 93.0 per cent, followed by mobile payments and PoS terminal, with 4.1 and 2.1 per cent, respectively. The web (internet) was the least patronised, accounting for 0.8 per cent of the total. In terms of value, ATM accounted for 90.8 per cent; PoS, 4.0 per cent; the web (Internet), 1.5 per cent; and mobile payments accounted for 3.7 per cent,” the report said.
In the same vein, the volume of Point-of-Sale (PoS) transactions increased by 64.4 per cent to 3,207,788 in the first half of 2013, compared with 1,951,252 in the second half of 2012. Similarly, the value rose by 53.0 per cent to N57.2 billion from N37.4billion in the preceding period. The increase in volume and value was due to sustained public awareness and acceptance of PoS usage.
However, the volume and value of inter-bank transfers through the RTGS System (CBN
Inter-bank Funds Transfer System -CIFTS) decreased to 197,220 and N55,005.3billion in the period under review from 213,825 and N57,286.0 billion in the second half of 2012, indicating a decline of 7.8 and 4.0 per cent, respectively. The development was attributed to the use of the Nigeria Inter-Bank Settlement System (NIBSS) Instant Payment channel.

The CBN also disclosed that the volume and value of the NIBSS Instant Payment transactions rose to 5,924,602 and N4,178.8 billion in the first half of 2013 from 3,293,216 and N2,873.0 billion in the second half of 2012, indicating an increase of 80 and 45.4 per cent, respectively. The rise in the use of the channel was attributed to the growing awareness of the scheme as well as users‟ preference for its quick transfer capacity.
According to the report, “Provisional data from the National Bureau of Statistics (NBS) indicated that the gross domestic product (GDP) at 1990 constant basic prices grew by 6.6per cent, compared with 6.4 per cent in the first half of 2012. The growth was driven by the non-oil sector, which rose by 7.9 percent.
Agriculture and industry grew by 4.2 and 1.0 per cent, respectively. Building and construction, wholesale and retail trade and services increased by 15.58.4and 12.8 per cent, respectively.”

However, the report indicated that domestic crude oil production, including condensates at an average daily production of 1.99 million barrels per day in the first half of 2013 dropped by 4.8 per cent below the 2.09 million barrels per day in the first half of 2012.
“The average spot price of Nigeria’s reference crude, the Bonny Light (370API), was $110.29 per barrel during the first half of the year, down by 4.1 per cent from the level in the corresponding period of 2012. Inflationary pressures moderated in the first half of 2013 as the composite Consumer Price Index (CPI) stood at 146.6 compared with 135.3 and 141.1 at end -June and end -December 2012, respectively. The year –on -year headline inflation stood at 8.4 per cent at end-June 2013, compared with 12.0per cent at end-December 2012 and 12.9 per cent at end-June 2012.”
It added that the external sector remained viable in the first half of 2013, with balance of payments surplus of N184.84 billion or 0.9 per cent of GDP.

The outcome, according to the CBN, accounted for the sustained high crude oil prices in the international market and huge capital flows.
Meanwhile, the current account recorded an estimated surplus of N1, 844.84billion or 8.9 per cent of GDP
While the financial account was overwhelmed by huge portfolio flows during the period under review.
“Provisional data indicated that Nigeria’s external assets at end-June 2013 grew substantially to  N9, 940.10 billion, from N7, 889.03billion in the corresponding period of 2012 reflecting the low holdings.
Consequently, the stock of external reserves rose to US$44.96 billion at end -June 2013 and could support 10.8months of cover,” the report said.

 

 

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