The value of electronic utility payments dropped by 44.86 percent in February, despite the Central Bank of Nigeria’s naira redesign policy, which was intended to boost cashless transactions. According to data from the Nigeria Inter‑Bank Settlement System (NIBSS), e‑bill payments fell to N90.93 billion in February, down from N164.89 billion in January, marking a two‑year low. Since reaching N78.38 billion in February 2020, e‑bill payments had consistently stayed above N100 billion, rising to N161.87 billion in February 2021 and N218.80 billion in February 2022.
NIBSS defines e‑bills as daily bill transactions that are accessible and seamless, encompassing payments of bills, fees, levies, premiums, and subscriptions through various channels. These payments are made in banking halls, via internet banking, mobile banking, USSD, and agent networks. When the CBN announced its naira redesign policy and withdrawal limits in 2022, many expected e‑bill payments to increase, with the central bank urging customers to use alternative channels such as internet banking, mobile apps, USSD, cards/POS, and eNaira.
However, Victor Olojo, National President of the Association of Mobile Money and Bank Agents in Nigeria, argued that the policy has depressed the economy and forced many point‑of‑sale (PoS) terminal operators to shut down. He said, “We can tie this fall in e‑bill payments to the policies of the CBN, which have depressed the economy and affected all businesses. Many businesses were not able to run optimally, and the rippling effect was well felt.” Olojo added that technology disruptions have also hampered banking apps, and many PoS agents, crucial to e‑bill processing, have closed their stalls, further reducing e‑bill transactions.
Olojo explained that the reduced purchasing power of many Nigerians, caused by the policy, has limited their ability to pay bills. “E‑bills are disposable expenses. Nigerians will pay them when they have excess cash. Bills, airtime, PayTV—all are done when people have extra income,” he said.
A recent report by the Centre for the Promotion of Private Enterprise (CPPE) disclosed that Nigeria’s economy has lost about N20 trillion since the CBN began mopping up cash. CPPE Director Dr. Muda Yusuf warned, “Millions of citizens have slipped into penury and destitution as a result of the disruptions and tribulations perpetrated by the currency redesign policy, especially the mopping up of over 70 percent of cash in the economy.” Experts noted that while the naira redesign policy was intended to encourage adoption of electronic bill channels, it has instead hammered economic activity and reduced Nigerians’ purchasing power.
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