By Kayode Tokede, Lagos
The Nigeria Inter-Bank Settlement System (NIBSS) has disclosed that estimated N4.09 trillion total value of cheques were cleared between January and September 2017.
According to NIBSS report, 8.13 million total volume of cheque transactions were reported in the period under review.
NIBSS stated that 1.84 million total volume of individual cheques were cleared between January and September while 4.3 million and 1.99million total volume of corporate cheques and total volume of other cheques (dividend warrant, bank craft) was reported in nine months of 2017 respectively.
NIBSS explained that cheque volume in five years showed mixed performance as most bank customers’ have favour mobile money means of transactions. Specifically, the report by NIBSS explained that cheque volume in 2013 was at 14.2 million but moved to 15.3 million in 2014.
Since 2015, transactions on cheque dropped by 13.3 per cent to 13.5 million from 15.3 million in 2014. It also dropped to 11.7 million and 8.13 million in 2016 and nine months of 2017 respectively. The report also stated that unique individual cheque customers by genders comprises of 27.1 per cent or 85,761 female users of cheques and 72.9 per cent or 230,670 male customers are using cheques.
However, director, Banking and Payments System Department, Central Bank of Nigeria (CBN), Mr. Dipo Fatokun, recently said globally, cards have been the fastest growing payments instrument since 2010, as cheque use has declined consistently and significantly.
According to him, debit cards accounted for the highest share (45.7 per cent) of global e-payment transactions and were also the fastest growing (12.8 per cent) payments instrument in 2014. Fatokun in its presentation at the bi-monthly Financial Correspondent Association of Nigeria (FICAN) workshop in Lagos, said, “electronic products are gradually reducing the usage of cheques and cash, as noticed consistently in the annual performance report since the inception of the Cash-less Policy in 2012.”
Speaking on the Nigeria experience, he said, “Volume and value of transactions based on Cheques and NEFT have been consistently reducing annually since 2013, while same data for NIP, ATM, and Mobile Money channels have been on the increase.” He stated that, “This is an indication of users’ preference for instant value channels over non-instant payment channels.