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Electronic payments to soar as banks’ enforce N150,000 cheque cash limit

Strong indications have suggested that the speed with which the Nigerian economy is adapting to cashless economy will soar going forward as all commercial banks have started the enforcement of dishonouring cheques with face values exceeding N150,000.

Checks at some banks in parts of Lagos, Abuja and other major commercial cities show that many people that approached banks with cheques that are above N150,000 were disappointed in getting instant cash, rather they were directed to pay same into their account and wait for at least one or two days for maturity and payment alerts in their phones before going back to cash same.

Besides, daily cash withdrawal limits for both individual and corporate had been in force before now.

Analysts are therefore linking the recent report that electronic payments rose to N10.89tn in January to the associated polices put in place by the apex bank in discouraging cash economy.

Recall that latest statistics released by the Nigerian Inter-Bank Settlement Scheme (NIBSS) confirmed that Nigerian banks facilitated electronic payments valued at N10.89tn in January, which represents a 29 per cent increase in transactions as against N8.41tn recorded in January 2019.

Also within the period under review, the volume of electronic payments rose to 160.18 million, recording 58 per cent increase from the 2019 figure, which was 101.38 million.

The overall electronic payments figure is an aggregate of transactions carried out on Point of Sale, terminals, mobile inter-bank transfers, NIBSS’ Instant Payments, electronic bill payment and Central Pay across the country.

Details of the NIBSS report showed that the value of Point of Sale transactions stood at N313.427bn in January, recording a 41 per cent increase compared with N222.921bn recorded in the corresponding period in 2019.

The volume of payments carried out via the PoS terminals rose to 41.305 million in January 2020, representing 47 per cent increase as against 28.162 million in the same period in 2019.

Also, NIBSS report further indicated that mobile inter-bank transfers amounted to N133.215bn in January 2020, recording a 397 per cent growth from N26.828bn in January 2019.

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