FG, SMEs to increase monthly e-payment transactions to N1trn

 By Bankole Jamgbadi

The federal government, corporate organisations and small and medium enterprises (SMEs) are poised to raise the current monthly N500 billion electronic payment transactions to N1 trillion before the end of the year as the financial inclusion strategy of the government gathers momentum, according to report from Leadership.

Remita integrated platform, the e-payments and e-collections platform adopted by the Central Bank of Nigeria (CBN) has witness over N13 trillion transactions. Managing director of Systemspecs, developer of the platform, Mr. John Obaro, said the one-stop multibank electronic payments, e-collections, e-payroll and e-schedules platform is on cause to reach N1 trillion transactions by December 2014 as many more users embrace the platform to make the federal government cashless policy initiative a reality.


Speaking with the newspaper, Obaro said electronic payment is set to be the key driver of Nigeria’s economy as millions of unbanked people get acquainted with electronic transactions through mobile money, Internet banking, Point of Sale (PoS) terminals and Automated Teller Machine (ATMs) this reducing quantity of physical cash in circulation. “We are expecting more and more people to join the e-payment train and hopefully before the end of the year we should be doing very close to N1 trillion on a monthly basis.
 Cumulatively, we have done over N12 trillion. Incidentally, we are privileged to be working with the office of the Accountant-General for the payment of the federal government contractors/vendors, salaries and pensioners. “On the platform right from their offices in Abuja they press the buttons and beneficiaries accounts are credited in different accounts such as commercial banks and microfinance banks in the country. E-payment has brought in efficiencies into the system.

For instance, vendors/contractors don’t have to go long distances before they are paid. If you submit your invoice, it is processed and payment hits your account.” Obaro noted that e-payment has helped to create more efficiency in processing even in government circles and there is a higher level of transparency in the processing of transactions there. “I would want to believe e-payment has stemmed corruption because corruption thrives were things are not very clear but were you have transparency it becomes a little more difficult to continue to practice corruption”, he said.

The director of payment systems, CBN, Mr. Dipo Fatokun, said that electronic payment is gaining weight as ATM machines in Nigeria has increased from 10,727 in June 2012 to 15, 000 by June 2014 with the transaction volumes also moving from N1.3 trillion as at June 2012 to N1.7 trillion as at June 2014. Point of Sales (PoS) terminals has as well increased from 21, 400 in 2012 to 135, 000 at as June 2014. He also said the transaction volume on the PoS terminals have increased from N57.3 billion in 2012 to N138 billion by June 2014.

According to the CBN, the cashless policy aims at reducing the amount of physical cash circulating in the economy and encouraging more electronic-based transactions (payments for goods, services, transfers, etc.). Mr. Bismack Rewane of chief executive officer, Financial Derivates Ltd said that about N15 trillion worth cash is still in circulation mainly in the informal sector.

The cashless policy, according to him, will drive the development and modernization of Nigeria’s payment system nationwide as all individuals and corporates will be encouraged to adopt electronic payment and banking options.

Culled from www.today.ng