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NIBSS: PoS transactions rise to N241billion

By BusinessNews Staff on December 2, 2014

The Nigeria Interbank Settlement System (NIBSS) has disclosed that transactions through point of sale (PoS) terminals have risen by 191 per cent to N241 billion since the beginning of the year.
The company also reported a 249 per cent increase in its profit before tax, which it said, rose to N2.82 billion for the year ended December 31st, 2013.

Chairman of NIBSS and Deputy Governor, Operations, Central Bank of Nigeria (CBN), Alhaji Suleiman Barau disclosed this at the annual
general meeting of the institution held in Lagos on Friday.
According to Barau, the financial performance of the organisation was greatly impacted by the impressive business activities recorded during the year.

He said gross income grew by 32.33 per cent to N5.13 billion, up from the N3.88billion recorded in 2013.
The CBN deputy governor also stated that the NIBSS witnessed tremendous growth in electronic payment trends on its platforms in the year under review, saying that consumers’ spending habits increasingly shifted towards the use of alternative e-payment channels aside the ATMs.

This, he said was evidenced by the historic recording of over 10,000,000 e- payment transactions on its platforms as at July 2014, compared to the average monthly transaction volume of 8,075,000 in 2013.
He said: “This represents 24 per cent growth and is a clear indication of the potential for e-payments in Nigeria and also the need for greater attention and investments to enhance NIBSS infrastructure.
“Both the NIBSS Electronic Fund Transfer (NEFT) and NIBSS Instant Payment (NIP) products have enjoyed steady adoption over the years, enhanced by the CBN mandate for government and corporate entities to make all salary and administrative payments electronic.

“The volume of NEFT transactions increased by 29.51 per cent from 29.20 million (N13.61trillion) in 2013 to 37.82million (N14.93trillion) in 2014 while customers’ affinity towards instant payment has seen NIP grow volume by 204.03 per cent from 9.22million (N7.6trillion) in 2013 to 28.03million (N15.80trillion) in 2014.
“Cheque clearing as a key product of NIBSS has evolved over time from being purely paper-based to electronic via the implementation of the Cheque Truncation System (CTS) deployed by NIBSS to the Banking Industry. Through CTS, clearing period has reduced from T+3 to T+2 in Nigeria and consequently, Cheques processing increased to 15.40million (N7.79trillion) in 2014 compared to the 12.23million (N7.15trillion) recorded in 2013 representing an increase of 25.96 per cent.”

Barau stated that the NIBSS serves as the Payments Terminal Service Aggregator (PTSA) for the financial industry as part of the cashless Nigeria initiative which requires all PoS terminal operating within Nigeria to connect directly to the interbank settling company through the NIBSS Central Terminal Management System (CTMS).
The CBN cashless initiative which was first piloted in six states and Lagos where it was firstly introduced was extended nationwide in July 2014. “The incredible growth in PoS transaction volume by 191.24 per
cent to 15.17million (N241.51billion) in 2014 from the 5.21million (N95.29billion) in 2013 further testifies to the successful story of PoS deployment in Nigeria,” he said.

[ThisDay]

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