More Money for PoS Operators As Nigerians Transact Over N14trn in 10 Months

• Nigerians transacted over N14 trillion via PoS systems in the first 10 months of 2024, marking a significant rise in digital payments
• The surge in PoS usage is attributed to ongoing cash scarcity, with consumers increasingly turning to cashless solutions for transactions
• PoS operators are benefiting from the growing demand for easy and quick access to cash offered

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

Point-of-sale (PoS) transaction volumes reached a new milestone, surpassing N14.86 trillion in the first 10 months of 2024.

This amount represents a 38.27% increase compared to the N10.74 trillion reported during the same period in 2023.

The 2024 figure also reflects a 77.11% increase from the N8.39 trillion recorded in 2022.

According to data from the Nigeria Interbank Settlement System (NIBSS), the monthly value of PoS transactions was on the rise in most part of 2024.

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New Telegraph reports that the value of PoS transactions stood at N850.09 billion in January 2024, N805.05 billion in February, and N958.99 billion in March.

It decreased in April to N811.77 billion before rising again to N868.66 billion in May. Another increase in PoS transactions was recorded in June, standing at N930.76 billion, while N1.05 trillion was recorded in July.

In August, the value of PoS transactions stood at N1.198 trillion, increasing to N1.231 trillion in September and N1.84 trillion in October.

This growth is largely attributed to the ongoing cash scarcity, which has pushed many Nigerians to embrace digital payment solutions.

Experts at Financial Derivatives Company Limited (FDC) noted that digital payment systems such as NIBSS Instant Payment (NIP), the NIBSS Electronic Fund Transfer (NEFT) and PoS had experienced “significant growth” over the past five years, and cheques have become a less attractive payment method.

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PoS terminal rise

NIBS reports that the number of PoS terminals deployed nationwide rose by 32.3% (744,533 units) to a record 3.05 million in July 2024, compared to 2.30 million in the same period of 2023.

According to NIBSS, the total number of deployed PoS terminals in the industry increased from 2.45 million at the end of December 2023 to 3.05 million by the end of July 2024.

This means financial institutions deployed an additional 598,120 PoS terminals within the first seven months of the year.

CBN gives reasons for new cash withdrawal limits

Earlier, Legit.ng reported that the Central Bank of Nigeria (CBN) placed a transaction limit on PoS terminals.

The bank stated that there is a daily cash withdrawal limit of N100,000 per customer for point-of-sale (PoS) transactions.

The policy was addressed to all Deposit Money Banks (DMBs), microfinance banks, mobile money operators, and super-agents.

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CBN said any breach of the directives would attract severe penalties, including monetary fines and administrative sanctions.

Proofreading by Nkem Ikeke, journalist and copy editor at Legit.ng.

Source: Legit.ng