Point of Sale (PoS) transactions in Nigeria reached a total of N6.23 trillion between January and July 2024, according to recent data from the Nigeria Inter-Bank Settlement System (NIBSS).
Despite this impressive figure, it reflects a 7.4% decline compared to the N6.79 trillion recorded in the same period in 2023, highlighting shifts in consumer behavior and spending patterns over the past year.
The NIBSS data provided a breakdown of the monthly PoS transactions, revealing a mix of increases and declines throughout the first seven months of 2024. January started strong with a 5.3% rise in transactions, reaching N850.09 billion, up from N807.16 billion in the same month in 2023. However, this upward trend did not last long.
In February, transactions dropped to N805.05 billion, marking an 8.9% decrease compared to N883.45 billion recorded in February 2023. The situation worsened in March, with PoS transactions experiencing a sharp 16.5% fall, totaling N961.86 billion, down from N1.15 trillion during the same month in the previous year.
April continued the downward trend, with a significant 22.3% decline in transactions to N811.78 billion, compared to N1.04 trillion in April 2023. However, May brought some relief, with PoS transactions increasing by 16.1% year-on-year, reaching N868.66 billion.
The decline returned in June, with a slight drop of 1.3%, bringing PoS transactions down to N930.76 billion, compared to N943.38 billion in June 2023. Despite this, July saw a rebound, with transactions rising by 8.9% to N1.01 trillion, up from N923.32 billion in July 2023.
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The fluctuations in PoS transactions reflect changes in consumer spending habits and economic factors. The rising cost of living, cash shortages, and shifting preferences for digital payments are believed to have contributed to the variations in the transaction values.
In addition to PoS transactions, electronic payment (e-payment) transactions have also surged in Nigeria. Reports show that e-payment transactions jumped by an impressive 86.44% in the first half of 2024, reaching N566.39 trillion, compared to N303.60 trillion during the same period in 2023. July 2024 recorded the highest transaction value, totaling N89.50 trillion, significantly higher than the N47.39 trillion recorded in July 2023.
These figures demonstrate the growing role of digital and electronic payment methods in Nigeria’s economy, as consumers continue to embrace the convenience of cashless transactions. While PoS transactions have shown some volatility, the broader trend of increasing e-payments suggests that digital financial services will remain a key part of Nigeria’s economy.