Falling purchasing power, increasing poverty, as well as increased network failures across e-payment channels in the country has dragged down the total volume of electronic transactions in the country in the first quarter of 2019.
The first quarter (Q1) transactions record of the electronic payment (e-payment) channels across the country, showed a shortfall of N5.13 trillion at N34.02 trillion, against N39.15 trillion recorded in Q4 of 2018.
The e-payment channels include the Nigeria Inter-Bank Settlement System Instant Payments (NIP), Automated Teller Machine (ATM), Point of Sale (PoS), electronic cheque truncation, mobile cash, electronic bills pay, web and mobile payment, among others.
Sector analyst and economist have attributed the downturn in the transaction volume as evidence of the increasing low purchasing power of the majority of the citizens, increased poverty and insufficient and failing support infrastructures as major contributors for the decline.
This decline in volume should be of concern to the Central Bank of Nigeria, the country’s financial regulators in view of its strong position on the need to promote a cash-less and more inclusive financial participation by the largely under banked population