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 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:
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.
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?
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