Nigerian Banks Benefit from Naira Redesign Policy as Electronic Banking Income Surges

The Central Bank of Nigeria’s initiative to redesign the naira has proven to be advantageous for at least 12 Nigerian banks, as they witness a significant boost in their electronic banking revenue.

Upon analyzing the financial statements for the first quarter of 2023, it is evident that these banks collectively generated a total revenue of N96.48 billion through their electronic banking platforms. This marks a notable increase of 23.84 percent compared to the previous quarter in 2022 when the revenue stood at N77.91 billion.

The United Bank for Africa Plc (N20.93 billion) and Access Holdings Plc (N20.66 billion) emerged as the top two earners in the field of e-banking. Other notable performers included Zenith Bank Plc (N12.08 billion), FirstBank Nigeria Limited (N17.88 billion), and Guaranty Trust Bank Plc (N11.43 billion).

This electronic banking income encompasses revenue generated from various electronic channels, such as mobile applications, USSD channels, and internet banking.

The surge in e-business income can be attributed to the naira redesign policy implemented by the Central Bank of Nigeria. Due to this policy, which initially compelled many Nigerians to adopt electronic payment methods, the volume of cashless transactions in the country has experienced substantial growth.

According to industry statistics from the Nigeria Inter-Bank Settlement System, cashless transactions surged by 44.84 percent, reaching N126.73 trillion in the first quarter of 2023, compared to N87.49 trillion during the same period in 2022.

The Central Bank of Nigeria has emphasized its vision for reduced cash payments in the country by 2025, as outlined in its Payments Vision 2025 document. The bank aims to establish a cashless and efficient electronic payment system infrastructure that caters to all sectors of the economy.

“The use of cash will naturally decline with the emergence of the ‘mobile-first generation,’ which will be economically active by 2025. Therefore, enhancing the cashless policy is one of the key objectives of the Payments Vision 2025,” stated the Central Bank of Nigeria.

As the implementation of the Payments Vision 2025 agenda progresses, the Central Bank of Nigeria remains committed to promoting the widespread utilization of the Nigerian payments system within the country. The bank aims to support the government’s financial inclusion objectives, adhere to international standards, and contribute to overall national economic growth and development in Nigeria.