The Nigerian card payments channel recorded strong growth during the review period both in terms of volume and value. The card payments channel grew at a review-period CAGR of 12.89%, rising from 30.5 million cards in circulation in 2009 to 49.5 million in 2013. Over the forecast period, the card payments channel is forecast to register a CAGR of 9.76%, rising from 56.1 million cards in circulation 2014 to 81.4 million in 2018.
The review-period growth was a result of the Nigerian government's efforts to move its cash-based economy towards non-cash payments. Projects such as Cash-Less Lagos have been launched to promote electronic payments and curb issues such as tax evasion and money laundering.
In terms of transaction value, the card payments channel grew at a significant CAGR of 31.69% during the review period, from NGN1.1 trillion (US$7.1 billion) in 2009 to NGN3.2 trillion (US$20.3 billion) in 2013. The channel is expected to post a forecast-period CAGR of 11.09%, from NGN3.6 trillion (US$22.4 billion) in 2014 to NGN5.5 trillion (US$31.1 billion) in 2018.
Mobile payments (m-payments) registered an exponential review-period CAGR of 147.46%, from NGN1.3 billion (US$8.4 million) in 2009 to NGN47.1 billion (US$300.4 million) in 2013. M-payments are anticipated to record a forecast-period CAGR of 23.24%. E-commerce also grew at a healthy review-period CAGR of 24.29%, from NGN38.6 billion (US$259.2 million) in 2009 to NGN92.1 billion (US$586.9 million) in 2013, and is anticipated to record a forecast-period CAGR of 12.63%. Outbound travel spending by retail and corporate consumers increased during the review period at a CAGR of 17.25%, and is anticipated to increase further over the forecast period at a CAGR of 9.31%, fueling the growth of travel cards.
In 2012, the Central Bank of Nigeria (CBN) introduced a new policy stipulating a cash handling charge on daily cash withdrawals or deposits which exceed NGN500,000 (US$3,188.6) for individuals and NGN3,000,000 (US$19,131.5) for corporate bodies, in order to reduce the amount of physical cash in circulation. The policy is initially piloted in Lagos and will be gradually introduced in other Nigerian states. Consumers, financial institutions and the government are all expected to benefit from the policy.