COVID-19 Raises Nigeria’s Mobile Banking To N16trn – IMF

The value of mobile money transactions increased to 9.72 per cent of Nigeria’s Gross Domestic Product in 2020 as the COVID-19 pandemic lockdowns pushed more people to Internal banking and other digital transaction.

However, the number of registered mobile money agent outlets per 1,000km2 reduced to 141.81, according to the International Monetary Fund Financial Access Survey report.

In the Financial Access Survey, the IMF said the value of mobile money transactions increased from 3.04 (N4.18tn) per cent of GDP in 2019 (N4.18tn) to 9.72 per cent of the GDP in 2020 (N16.01tn). This represents a growth of 283 per cent.

As the value of transactions increased, the total number of agent outlets per 1,000km2 reduced from 160.08 in 2019 to 141.81 in 2020.

According to the World Bank, Nigeria’s GDP was N164.71tn ($432.3bn) in 2020, and N137.54tn ($448.1bn) in 2019.

The IMF report read in part, “Social distancing and lockdowns have reinforced the use of digital financial services, and the latest FAS data confirm this \development.

“Mobile money usage increased significantly in low- and middle-income economies, with the value of mobile money transactions as a share of GDP increasing by two percentage points on average for low- and lower middle-income economies in 2020.

“The number and the value of mobile and internet banking transactions also grew for all country income groups, most notably among upper middle- and high-income economies.”

According to the Nigerian Inter Bank Settlement System, the pandemic changed the e-payments landscape and accelerated the adoption of instant payments as people transitioned to electronic channels for funds exchange in the wake of lockdowns.