Value of interbank transfers, captured through the Nigerian Inter- Bank Settlement System (NIBSS), jumped from N51 billion monthly in January
2012 to over N1.5 trillion as at June 2014, helped by the cashless policy of the Central Bank of Nigeria (CBN).
In volume, NIBSS transfers rose from 87,000 transactions a month in January 2012 to 3.1 million transactions a month as at June 2014.
According to recent figures from the CBN, volume of Point of Sale (PoS) transactions increased astronomically from less than 2000 monthly as at January 2012 to 1.6 million per month in June 2014 while transactions in value moved up from N38 million per month in 2012 to N24 billion monthly.
Licensed payment terminal service providers licensed to increase PoS terminal penetration increased from 5 to 10 with over 150,000 PoS terminals across the country as at last month.
The CBN said its target is to increase the PoS terminals to at least 350,000 by 2015.
In an update report on the cashless policy seen by BusinessDay, the CBN indicated that at the moment, mobile money transactions value went up to N819 million monthly while 22 licensed mobile money operators have already secured licences.
Nigeria’s payment system has since seen a rapid transformation on the back of a cashless policy introduced by the CBN in 2012 to drive Vision 2020.
The CBN’s cashless policy went nationwide on July 1, 2014, after a successful implementation, first of all in Lagos State in the first phase, then, in the five states of Abia, Anambra, Kano, Ogun, Rivers and Federal Capital Territory (FCT) in the second phase.
The CBN said so far there has been a significant increase in volume and amount of electronic payment and that extra measures have been taken to enhance connectivity and forestall fraud.
In the update, the CBN said such anti-fraud measures include the tokenization and encryption for electronic transactions, introduction of the Payment Card Industry Data Security Standard (PCI DSS) as well as the Payment Application Data Security Standard (PA DSS).
The apex bank also noted further that it has ensured the development of a dynamic authentication process for card-not-present transactions and also introduced Chip and Pin Card Arbitration framework.
The bank has also inaugurated a fraud committee, the Nigerian Electronic Fraud Forum (NeFF) which comprises banks, security services and technology companies.
The committee, it was learnt, meets every month to analyse patterns of fraud both locally and globally and then give out relevant information for proactive measures to be taken.
Meanwhile, the CBN said the next major step would be to implement connectivity agreement with NIGCOMSAT that would allow the installation of hotspots in the local government areas across the country to improve connectivity and better penetration of the policy.
It was also gathered that there is already a proof of concept to ensure the workability of the technology.