As Nigerians grapple with the disappearance of cash from ATM machines and a must-use situation with the POS vendors, stories emerge of how some are smiling while others are suffering.
A young man had walked up to the ATM machine in a bank, confidently, with a conviction that he would find money for food. He had just ₦2,000 in his account and he needed all of that money for food.
He entered his pin and the machine says, “unable to dispense cash”. The young man engaged all of the machines at that ATM gallery, yet none had cash.
Standing of front of the machine the young man understands that his inability to get the ₦2,000 out of the machine would mean patronising a POS vendor. He would lose ₦100 naira, leaving him with 1900.
While he is in a predicament only him would decide what to do, the POS operator is counting blessings.
In Nigeria today, nearly everyone relies on POS transactions to be able to get money for daily needs.
In fact, POS transactions in Nigeria between January and July 2024 totaled ₦6.23 trillion.
This reflects a 7.4% decline from the previous year.
Despite this drop, July saw a surge, indicating resilience in consumer spending as the payment landscape evolves.
Between January and July 2024, point-of-sale (POS) transactions in Nigeria totaled an impressive ₦6.23 trillion.
This information comes from the Nigeria Inter-Bank Settlement System (NIBSS).
However, this figure tells a story of ups and downs, reflecting shifts in consumer behaviour and spending patterns.
In January, POS transactions rose by 5.3% to ₦850.09 billion, up from ₦807.16 billion in January 2023.
The optimism quickly faded in February, with a decline to ₦805.05 billion, an 8.9% drop from ₦883.45 billion the previous year.
March continued the trend, with a sharp 16.5% decrease, bringing transactions down to ₦961.86 billion from ₦1.15 trillion in March 2023.
April brought further challenges, as POS transactions fell by 22.3% to ₦811.78 billion, compared to ₦1.04 trillion in April 2023.
Shocking POS Transactions Turnaround
Just when it seemed like the decline would continue, May surprised everyone with a turnaround, as transactions climbed by 16.1% year-on-year to ₦868.66 billion.
Read Also; Court Bars VIO From Confiscating Vehicles, Imposing Fines
The rollercoaster ride continued into June, with a 1.3% dip, bringing transactions down to ₦930.76 billion from ₦943.38 billion in June 2023.
However, July marked a significant rebound, as POS transactions surged by 8.9% to ₦1,005.42 billion, up from ₦923.32 billion in July 2023.
In addition, e-payment activity in Nigeria soared, increasing by an astonishing 86.44% to ₦566.39 trillion in the first half of 2024.
This is a significant rise compared to ₦303.60 trillion in the same period last year.
Notably, July recorded the highest transaction value of the year, totaling ₦89.50 trillion, up from ₦47.39 trillion in July 2023.
This journey through the first seven months of 2024 highlights the resilience of Nigeria’s payment landscape.
It showcases how consumer habits are adapting in a rapidly changing economy.
