Elections drops electronic transactions in Q1
The value of electronic payment transactions fell by 13 percent, in the first quarter of 2019 to hit N34trillion by the end of March.
National Bureau of Statistics, in its Selected Banking Sector Data report for Q1’19, said the 2019 general elections impacted on economic activities during the quarter.
NBS said total volume of 557,083,712 transactions valued at N34.02trillion was recorded during the period. In the fourth quarter of 2018, a total volume of 616,528, 697 transactions valued at N39.15trillion were recorded as data on electronic payment channels.
It added that banks’ credit to the private sector also recorded sluggish growth of 0.52 percent to N15.21 trillion in Q1’19.
The report showed that the Nigerian Interbank Settlement System, NIBSS, Instant Payments dominated the volume of transactions recorded, with a transaction volume of 232.8 million, valued at N24.17 trillion.
NIP transactions dominated the volume of transactions recorded. 228,209, 423 volume of NIP transactions valued at N23.57trillion were recorded in Q 4 2018.
Further analysis showed that the value of cheque transactions declined by 8.0 percent to N1.2 trillion from N1.3 trillion in Q4’18. Similarly, value of Automated Teller Machine, ATM, dropped by 12percent to N1.5trillion from N1.7trillion in Q4’18.
Similarly, the value of Point of Sale, PoS, transactions fell by 11percent to N634billion in Q1’19 from N714 billion in Q4’18 while that of Mobile Payment dropped by 83 percent to N101 billion in Q1’19 from N592billion in Q4’18.
Following the same trend, the value of transactions made through Remita platform dropped by 99.6 percent to N19.3 billion from N5 trillion in Q4’18. Value of Web transactions also declined by 51 percent to N108 billion from N221 billion in Q4’18.
In terms of credit to private sector, the total value of credit allocated by the banks stood at N15.21trillion during the quarter from N15.13 trillion in Q4’18.
According to NBS, “Oil & Gas and Manufacturing sectors got credit allocation of N3.49 trillion and N2.23 trillion to record the highest credit allocation as at the period under review.”
The number of banks’ employees however increased by 0.33 percent quarter-on-quarter from 104,669 in Q 4 2018 to 105,017. As of Q 4, 2018, the total number of banks employees increased by 1.80 percent of from 102, 821 in Q 3 2018 to 104,669.