Point of Sale (PoS) transactions in Nigeria reached a total of N6.23 trillion between January and July 2024, according to the latest data from the Nigeria Inter-Bank Settlement System (NIBSS). This figure marks a notable 7.4% decline from the N6.79 trillion recorded during the same period in 2023, reflecting significant shifts in consumer behavior and spending patterns across the country.
The breakdown of NIBSS data reveals fluctuating trends in PoS transactions month by month. January 2024 saw a positive start, with PoS transactions increasing by 5.3%, totaling N850.09 billion compared to N807.16 billion in January 2023. This initial uptick suggested a potential rebound in consumer spending and confidence following the challenges of previous years.
However, the positive momentum did not last long, as February recorded a downturn, with transactions falling to N805.05 billion. This represented an 8.9% decrease from the N883.45 billion seen in February 2023. The decline continued into March, where PoS transactions plummeted by 16.5%, landing at N961.86 billion, down from N1.15 trillion in March of the previous year. This sharp decrease highlighted a potential shift in consumer sentiment, as economic pressures may have led to more cautious spending.
April brought further declines, as PoS transactions dropped by a staggering 22.3%, resulting in a total of N811.78 billion compared to N1.04 trillion in April 2023. This trend raised concerns about the sustainability of consumer spending in the face of rising living costs and economic uncertainties.
May, however, reversed this trend somewhat, as PoS transactions increased by 16.1% year-on-year, reaching N868.66 billion. This resurgence could be attributed to seasonal spending or promotional activities by businesses looking to stimulate consumer purchases.
In June, the situation shifted again, with PoS transactions dipping slightly by 1.3%, totaling N930.76 billion, down from N943.38 billion in June 2023. This fluctuation demonstrated the ongoing instability in consumer spending and the overall economic environment.
The most encouraging news came in July, when PoS transactions surged by 8.9%, reaching N1.005 trillion compared to N923.32 billion in July 2023. This increase marked a positive sign for businesses that rely heavily on PoS systems, suggesting that consumers may have been regaining some confidence and willingness to spend.
Amid these developments, it is important to note that e-payment transactions across Nigeria experienced a remarkable surge. In the first half of 2024, e-payment transactions jumped by an impressive 86.44%, totaling N566.39 trillion, up from N303.60 trillion during the same period in 2023. This significant growth indicates a strong shift toward digital payment methods, as consumers increasingly embrace technology for their financial transactions.
July was particularly noteworthy, as it recorded the highest transaction value for e-payments, totaling N89.50 trillion, compared to N47.39 trillion in July 2023. This surge in digital transactions aligns with global trends of increased online shopping and mobile payments, underscoring a transformative shift in Nigeria’s financial landscape.
Overall, the data highlights the evolving dynamics of consumer behavior in Nigeria, particularly in the context of PoS and e-payment transactions. While the decline in PoS usage raises concerns for businesses reliant on these systems, the substantial growth in e-payments indicates a growing acceptance and adoption of digital financial solutions. This transition presents both challenges and opportunities for MSMEs in Africa, as they navigate the changing economic environment and adapt to the increasing demand for efficient and convenient payment options. As the landscape continues to evolve, businesses must stay agile and responsive to these trends to thrive in the competitive market.
