The poor implementation of the demonetisation policy of the Central Bank of Nigeria (CBN), has given room for a Financial technology (Fintechs) boom in Nigeria as Nigerians grapple with naira scarcity and failed bank transactions.
Many Nigerians are daily switching to fintechs in their bid to overcome the resultant cash crunch and failed electronic transactions on commercial banks platforms caused by the over-stretching of their infrastructure owing to unexpected traffic.
The CBN Governor, Godwin Emefiele, had on Wednesday, October 26, 2022, announced the introduction of the redesigned ₦200, ₦500 and ₦1,000 banknotes.
The policy sparked widespread scarcity of cash across the country, with many Nigerians unable to get the much needed funds to meet basic daily needs like transport fares.
Unable to lay their hands on raw cash, millions of Nigerians, from petty traders to transporters and individuals reluctantly embraced the cashless policy.
Expectedly, the phenomenal rise in e-payment transactions in the country led to crash of banks networks, leading to failed transactions.
On many instances, funds transferred through banks’ mobile apps, USSD and other electronic platforms ended up as failed transactions, while account holders funds were debited.
For the lucky ones, their transfers take several hours, even days and weeks to drop.
Increase In Volume Of Transactions
As a result, banks customer service desks are daily bombarded by angry customers who demand the prompt reversal of their trapped funds.
According to the latest report by the Nigeria Inter-Bank Settlement System Plc (NIBSS), volume of transactions increased significantly in February 2023, rising by 121% year on year.
NIBSS further stated that there was an appreciable increase in small and micro level transactions.
Also, it recorded a massive 70% increase in volume and a 7.8% increase in volume of transactions between January and February 2023.
However, owing to multiple failed mobile transactions, transaction value recorded a slight growth of only 7.88% from ₦2.37 trillion in January to ₦2.56trillion in February, compared to 121% year on year in volume.
