The potential of the e-payments sector in Nigeria is still relatively untapped in spite of improvements, according to Uche Elendu, divisional head of e-banking and payments at financial IT solutions provider AppZone.
HumanIPO reported earlier this month South African Business Connexion (BCX) had acquired a 30 per cent stake in AppZone, and Elendu told a three-day conference on the development of cards and payment systems in Nigeria opportunities were there in the e-payments sector for those who could recognise them.
“The sector is a money spinner for those who know the act of spinning,” he said.
Elendu said Nigeria had witnessed an increase in the adoption of electronic payment systems as a result of government policies, which he said favour the increase in the adoption of electronic means.
“That regulation alone has already created a lot of demand and driven the adoption of electronic payment system, overall, across the country,” he said.
According to him, Nigeria has an enormous purchasing power that could drive the ecosystem.
”Currently Nigeria is known as a consumer nation. We spend hundreds of billions of naira here only on consumption. Now the benefit in this is that since electronic payment business is directly proportional to spending power, there is a huge market here,” he said.
“In my estimation, Nigeria is about NGN$1 trillion (US$6 billion) e-market. If you calculate the level of adoption of e-payment in the formal sector business and add the about 60 per cent informal sector which make up the large chunk of enterprise customers you can see this market as a NGN$1 trillion market. And there’s no doubt, it’s a market that the potentials are barely being tapped.
“Now, if the government protects this sector, sustains the policies in place at the moment by ensuring financial inclusion and prioritising use of cards and electronic transactions, the sector will provide a strong pillar to complement gains from oil and telecom sectors.”
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