NIBSS Processes N3.86tr worth of Cheques in 6 Months

LAGOS, NIGERIA: Between  January and June 2012, the value of cheques processed in the country by the Nigeria Inter-Bank Settlement System Plc (NIBSS) has hit N3.89 trillion. Already, NIBSS has concluded plans to commence Tier One (T+1) settlement cycle for cheques tomorrow, while the scheme for Point of Sale (PoS) terminals would begin towards the end of the year.

 The processed cheques’ figure was contained in a document obtained by The Guardian, which put the volume within the period at about 5.8 million. Specifically, the Managing Director and Chief Executive Officer of NIBSS, Adebisi Shonubi, explained that in January, 642, 229 cheques worth N449.1 billion was processed, which went up to 999,814 and valued at N683.6 billion in February.

 In March, NIBSS processed 1,188,548 cheques valued at N862.5 billion, while 860, 230 cheques worth N616.4 billion were processed in April. Shonubi said in May, cheque processing went up to 1,116,927 worth N678.8 billion and by June, a total of 964,710 cheques worth N607.9 billion. The NIBSS CEO, who stressed that cash related transactions represented over 99 per cent of customer activity in the Nigerian banks as at June 2011, said that NIBSS Instant Payment (NIP) transactions as at June 2012 stood at N284.3 billion.

 He explained that the NIP transaction figures rose from N180.9 billion in April to N242.3 billion in May of the same period. According to him, with NIBSS committed to the Central Bank of Nigeria’s cash-less economy initiative, it has become imperative to remove challenges bedeviling the project.

 Shonubi described the increasing e-payment transactions as a sign that the cash-less policy was gaining trust among stakeholders, including bank customers. He however, lamented that the country’s e-payment scheme is not immune from the general infrastructure problems, including power, telecommunications, incessant GPRS network downtime, stressing that every voice network down-time translates to GPRS down-time.

 Shonubi disclosed that the number of PoS now on NIBSS platform grew from 5,712 in January to 151,717 in June 2012, with the transactions nearing N4 billion monthly.