According to the Central Bank of Nigeria (CBN), electronic transactions, also known as e-transactions, in the country have seen a significant improvement. The level of fraud has dropped, while the value of e-transactions in the country has risen significantly when compared to its status in 2014.
The CBN concluded the implementation of the cashless policy across 36 states in Nigeria last year in order to drive development and modernization of the country’s payment system. So far, the cashless policy has helped with the growth of the e-commerce space in Nigeria. This is because most of the e-commerce businesses accept payments through online transactions, thereby making payments easier. A number of businesses, government agencies and organizations now make use of e-payment options, which has evidently blocked leakages in several institutions and made the system more efficient.
The level of cyber fraud in the country also reduced significantly in 2015. This reduction has been attributed to policies put in place by the CBN, which includes the compulsory registration for a Bank Verification Number (BVN) before the owner can access an account. Prior to the BVN registration fraudsters operated more than one account with different account details.
Here is how much improvement Nigeria recorded in fraud and e-transactions:
Level of fraud
According to the CBN director, Banking and Payment Systems, Dipo Fatokun, the value of attempted fraud in 2015 dropped to N4.37 billion compared to the 2014 value of N7.75 billion. The value of the actual loss to fraud likewise dropped to N2.25 billion in 2015 as against the N6.21 billion lost to fraud in 2014. Dipo made this known while speaking at a seminar for finance journalists and editors organised by the CBN in Ibadan on Tuesday. The decline in fraud was due to the Bank Verification Number, the two-way authentication factor, as well as the improved security features on the electronic payment channels.
Value of e-transactions
The value of electronic transactions (e-transactions) as of December 2015 rose to N48.93 trillion up from N43.85 trillion in 2014, indicating an increase of 11.6 percent, even as the volume rose by 43.4 per cent to 162.59 million from 113.42 million in 2014. This growth can be attributed to the growing numbers of online businesses as well as government agencies, which now use online platforms to make transactions easier.