The Nigeria Inter-Bank Settlement System (NIBSS) has reported in its latest electronic payment data that the number of Point of Sales (PoS) machines deployed by merchants and individuals across Nigeria rose to 3.04 million in July this year.

This represents a 32% increase year on year when compared with the number of deployed terminals in the same period last year, which was 2.3 million.

The July 2024 figure indicated that a total of 744, 533 new PoS terminals were deployed between August 2023 and July 2024.

However, the figure for deployed PoS is still lower than the total registered terminals. According to the NIBSS data, a total of 4.06 million PoS machines had been registered across the country as of July 2024, which shows that a total of 1.02 million terminals are either yet to be deployed or have become inactive.

New National Star recently reported that according to (NIBSS) the value of Point of Sale transactions in Nigeria between January and July 2024  decreased to N6.23 trillion.

This was a 7.4 percent decline compared to the N6.79 trillion recorded in the same period in 2023, reflecting changes in consumer behaviour and spending patterns. A breakdown of the NIBSS data showed  that PoS transactions increased by 5.3 percent in January to N850.09 billion, up from N807.16 billion in the corresponding month of 2023.

However, February declined to N805.05 billion, down 8.9 percent from N883.4 billion in February 2023. March saw a sharp 16.5 percent drop, with transactions falling to N961.86 billion from N1.15 trillion in March of the previous year.

The data showed that the downward trend continued in April, with PoS transactions dropping by 22.3 percent to N811.78 billion, compared to N1.04 trillion in April 2023. However, May reversed the trend, with transactions increasing by 16.1 percent year-on-year to N868.6 billion.

It declined in June, with PoS transactions dipping 1.3 percent to N930.76bn, down from N943.38bn in June 2023. However, PoS transactions in the country picked up again in July, rising by 8.9 percent to N1 trillion, compared to N923.32 billion in July 2023.

Recall that e-payment transactions in the country jumped by 86.44 percent to N566.3 trillion in the first half of 2024 from N303.6 trillion in the same period last year.

The data showed that July saw the highest transaction value, totaling N89.5 trillion, compared to N47.39 trillion in July 2023.

• PoS transactions value in the country hit an all-time high of N1.15 trillion in March last year, when the PoS value hit an all-time high is attributable to the unusual cash scarcity during the period, which forced many Nigerians to embrace electronic transactions.
• Aside from the 2023 cash scarcity, the growth of PoS transactions in Nigeria is being driven by many factors, part of which include rapid adoption by merchants for receiving payments.
• PoS is also bridging the gap created by the shortage of Automated Teller Machines (ATMs) deployed by banks, as many Nigerians now withdraw through PoS agents.
• Meanwhile, the Central Bank of Nigeria (CBN), in a move aimed at strengthening the monitoring of electronic transactions across Nigeria recently issued a new directive to Payment Service Providers (PSPs), requiring them to comply with enhanced routing guidelines for PoS transactions.
• The directive, issued on September 11, 2024, follows CBN’s initiative to diversify the Payment Terminal Service Aggregator (PTSA) structure, which previously operated through a single aggregator.
• This came amid an ongoing debate on the propriety of the registration of PoS operators mandated by the Corporate Affairs Commission (CAC).

According to the National Bureau of Statistics, NBS, the surge reflects a robust recovery in the investment climate, even as it represents a decline of 22.85% from $3.37 billion in Q1 2024.

The banking sector emerged as the top recipient, attracting U$1.1 billion (43.15%), followed by production and manufacturing at $624.71 million (23.99%), and trading at $569.22 million (21.86%).

The oil and gas industry secured $5 million in investments, as portfolio investments dominated the landscape, contributing $1.40 billion (53.93%), while other investments totaled $1.16 billion (44.92%).

Foreign direct investment remained minimal at just $29.83 million (1.15%).

The banking sector emerged as the top recipient, attracting U$1.1 billion (43.15%), followed by production and manufacturing at $624.71 million (23.99%), and trading at $569.22 million (21.86%).

Geographically, the United Kingdom was the largest source of investment, contributing $1.120 billion (43.01%), followed by the Netherlands with $577.82 million (22.19%) and South Africa at $255.98 million (9.83%).

Lagos State remained the prime destination for these investments, drawing in $1.36 billion (52.52%), while Abuja followed with $1.23 billion (47.48%), and Ekiti state with $0.0003 million.

Citibank Nigeria Limited received the highest capital importation into Nigeria in Q2 2024 with $818.46 million (31.43%), followed by Standard Chartered Bank Nigeria Limited with $654.79 million (25.14%) and Rand Merchant Bank Plc with $488.59 (18.76%).