Cashless Economy Spells Boom for Nigerian Digital Infrastructure Stakeholders

09 Mar
2017
Cashless Economy Spells Boom for Nigerian Digital Infrastructure Stakeholders

Nigeria has recorded N63Tn ($200Bn) in cashless transactions (cash transactions via electric channels) for 2016. This is almost double of the 2015 figure of N35Tn ($111Bn) according to the Nigerian Interbank Settlement Scheme (NIBSS). The widespread acceptance of cashless initiatives in the Nigerian economy is looking like it is here to stay and it is a good signal for business in Nigeria.

Gone are the days of dependence on Bank Tellers, Cash withdrawals via cheque and filling long forms and writing letters to initiate an inter-bank transfer.

Cashless Economy Spells Boom for Nigerian Digital Infrastructure Stakeholders

Cashless transactions are building bridges for commerce in the Nigerian market, as people don’t need to physically interact to make a purchase. Below is the spread of $200Bn in the various segments of cashless transactions:

Item Value
NIP 38Tn
Cheque 5.8Tn
ATM 4.9Tn
Mobile Money 756Bn
NEFT 12Tn
E-Bills 339bn
POS 759bn
Web 132bn

What is important to note is that N132Bn ($420mn) was spent on online/web transactions in 2016 and N339Bn (Over $1Bn dollars) spent on paying bills online.

Cashless Economy Spells Boom for Nigerian Digital Infrastructure Stakeholders

What does that mean for Nigerians?

  • People are Purchasing Online and are seeking digital methods of making transactions and that need needs to be addressed by the arrival of more Nigerian digital-centered-businesses.
  • Businesses that have strong offline presence need to take their online presence more seriously, if not their relevance will be diminished over the coming years.
  • The Nigerian workforce needs to be better trained and require increased numbers of IT professionals who can ideate, build and manage digital platforms.

Below are some of the businesses who stand to really take advantage of the rapid growth of e-business being done in Nigeria:

  • Utility Billers moving Online
  • E-Commerce Stores
  • Travel Agencies
  • Application Development Firms for E-platforms
  • Payment Gateways (Solutions)
  • Mobile VAS Operators
  • E-Payment Security Providers.

Do You have a business idea or an existing business that you want to translate via Digital platforms?

You can talk to a WSI Certified Digital Marketing Consultant today.

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Chukwudi Nwokike
author

Chukwudi Nwokike has worked with brands from different sectors of the economy such as: University of Nigeria, Afrinvest, Meristem, Bi-Courtney Aviation and dRaX ARTS. His clientele usually end up with a healthy web presence that is capable of generating revenue for their business. He works with WSI,one of the largest digital marketing agencies in the world with over 1,000 offices in 81 countries. WSI Axon is the Lagos Office that helps business improve their digital presence and become profitable on the internet.

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