Current accounts drop by 4.5 million, as PoS transactions hit N373 billion

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The current accounts held by bank customers have dropped by 4.5 million as at the end of 2019. This was disclosed by Nigerian Inter-Bank Settlement System () in its latest industry statistics data.

Current accounts drop by 4.5 million, as PoS transactions hit N373 billion

The NIBSS’ Data stated that the number of current accounts held by bank customers dropped from 29.8 million in November 2019 to 25.3 million in December 2019. It also added that Point of Sale () transactions hit N373 billion within same period.

Meanwhile, bank customers have attributed the decline to the rigid procedures of commercial banks and charges made on the accounts.

“There are various categories of customers who can own a current account. But basically we have the individual and business (corporate or commercial) customers.

“Current account helps businessmen to make a direct payment to their creditors by issuing cheques, demand-drafts or pay-orders. It also enables a bank to collect money on behalf of its customers and credits the same in their customers’ current accounts.

“The reason bank customers are abandoning their bank accounts is due to the Commission on Turnover (CoT) and other outrageous charges on transactions they perform.”
On the other hand, the value of Point of Sale (PoS) transactions hit N372.68 billion with a total of 46.16 million transactions carried out in December 2019. When compared with the N303. 82 billion worth of transactions done in November 2019, the value of PoS transactions increased by N68.85 billion.

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In all, despite the recent policies of the Federal Government around taxes/stamp duty charges on PoS transactions as recently published on Nairametrics, technology seems to have won and aided the charge of the Nigerian government towards a cashless economy with the increase in volume and value of PoS transactions.