Nigerians Abandon 4m Bank Accounts in One Year

19 November 2019

Inactive bank accounts rose by four million or 10 percent to 45 million in one year period ending October 31, 2019 from 41 million as at same period of 2018.

Financial Vanguard analysis of industry statistics released by the Nigerian Inter Bank Settlement System (NIBSS) also revealed that the number of active bank accounts increased by 6.8 percent to 79 million in October 2019 from 74 million in October 2018.

NIBSS also revealed that the total number of bank accounts grew Year-on-Year, YoY, by eight percent to 124 million accounts as at October 31 from 115 million accounts in October 2018, implying that nine million new bank accounts were opened during the period.

Further analysis, however, showed a faster growth rate of 20 percent in current account at 30 million from 25 million while the number of savings accounts rose by six percent to 91 million from 86 million.

E-banking sustain robustness

Moreover, the e-banking platforms continued to experience most robust growth in the industry during the period, as the data indicated that the value of NIBSS Instant Payment (NIP) transactions grew by 29 percent to N9 trillion from N7 trillion in October 2018 while the volume of NIP transactions rose by 53 percent to 107 million transactions from 70 million transactions in October 2018.

The volume of Point of Sale (PoS) transactions rose by 69 percent to 404 million transactions from 239 million in October 2018 while the value of PoS transactions grew by 36 percent to N288 billion from N212 billion in October last year.

Further analysis showed that the volume of transactions performed using mobile phones (Mobile Inter scheme) grew by 953 percent to six billion in October 2019 from 569.8 million transactions in October 2018 while the value of mobile transactions rose by 373 percent to N104 billion in October 2019 from N22 billion in October 2018.

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