News in brief: Electronic transactions in Nigeria grew by over 900% between 2022 and 2023 as more people move away from cash after the cash crunch of March 2023.
Nigerians are beginning to rely more on electronic transactions as cash in circulation dropped from â¦â3.23 trillion in October 2022 to â¦â2.34 trillion in April 2023 (38.03%), according to a statement by the Central Bank of Nigeria (CBN).
It appears that the Naira redesign policy changed the spending medium in the country for longer. In an additional statement, CBN Director, Currency Operations Department, Mr. Ahmed Umar, said that electronic transactions grew by 984% year-on-year in the first quarter of this year.
With over â¦7 billion in transfers between January and March 2023, compared to the â¦434 million transfers in the same period, it is clear that the populace is still opting for electronic transactions even after the cash crunch has seized.
Also, it is important to note that the cash in circulation includes both the old and new currencies. The bank executive had to point out this fact because there had been rumours making rounds that the institution was planning to remove the new currency from circulation.
More people joining the banking system
Commercial banks are reporting new customers as well, working to improve their infrastructure to satisfy their needs. 57 million people enrolled for Biometric Verification Number (BVN) in April 2023, which was an increment on the 55 million that did so in October 2022.
Nigeria’s unbanked population, making up about 40% of its total population, has always being a problem. They typically cannot participate in the economy like the banked can, which is detrimental to them and the country too.
However, while adding more Nigerians to the banking system is good, the CBN is working on printing more of the redesigned notes. With the new date for pulling the old notes out of circulation approaching gradually, the hope is to avoid a repeat of what happened in March 2023.
Besides more people joining the backing system, the CBN also wants increased usage of the eNaira; a Nigerian digital currency. Already, several corporate institutions have adopted it including some universities, the Joint Admissions and Matriculations Board (JAMB), markets, tricycle operators and others.
