Banks Install More POS Terminals as Nigerians Spend N552.3 Billion in a Single Month

• POS transactions is the new banking format in the financial sector in Nigeria, as banks redirect investment into the less costly venture
• This follows an astronomical rise in the number of electronic transaction payment in the country in recent years
• Tech startups have also benefited from the agent banking system introduced by the Central Bank of Nigeria to increase financial inclusion

Point of Sale transactions in Nigeria dropped marginally by 0.74% to N552.26 billion in October 2021 compared to N556.36 billion recorded in the previous month.

This is according to recent data released by the Nigeria Inter-Bank Settlement System (NIBSS).

The value of POS transactions dropped despite a 33.6% increase in the volume of transactions to 91.39 million from 87.71 million recorded in September 2021.

Further analysis of the data showed that the number of POS terminals deployed in October rose by 7.6% month-on-month to 764,589 in the review month.

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Breakdown on the value of the transaction

The value of POS transactions dropped marginally by 0.74% month-on-month to N552.3 billion in October 2021. However, it rose by 19.81% compared to N460.95 billion recorded in the corresponding period of 2020.

So far in the year, a total of N5.17 trillion POS transactions have been recorded between January and October 2021, which is 40.9% higher than N3.67 billion recorded in the same period of 2020.

The volume of transactions rose by 33.6% to 91.36 million in the month under review. On a month-on-month basis, it increased by 4.2% compared to 87.8 million transactions recorded in September 2021.

The total number of deployed terminals also increased by 7.6% month-on-month and 82% year-on-year to 764,589.

How eNaira Will Work: CBN Gives Latest Update to Know About Nigeria's Digital Currency

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The central bank has introduce a new innovation into the financial system of Nigeria with the the launch of eNaira, Nigeria's digital currency.

The CBN intends to use the eNaira to replace the non-regulated cryptocurrency which has become popular among Nigerians, but remains banned in the country.

It was gathered that the government-backed digital currency is a non-interest bearing asset, so Nigerians can't use it to hedge devaluation.

Source: Legit.ng