Cleared Cheques Hit N1.9tn Value

 CBN Governor, Sanusi Lamido Sanusi

Following the ongoing reforms in the Nigerian payment system by the Central Bank of Nigeria (CBN), the total worth of cheques cleared by banks in the country rose by 8 per cent to N1.954 trillion in May.

The figure represented an increase by N145 billion compared with the N1.809 trillion recorded in the month of April, the Managing Director and Chief Executive Officer, Financial Derivatives Company Limited (FDC), Mr. Bismarck Rewane has said.

The CBN had said its priority is to reform Nigeria's payments system which presently remains largely cash-based. Part of this is the plan by the regulator to introduce mobile payment scheme in the country. The apex bank had also announced a policy that seeks to limit the daily cash withdrawal and lodgment in the country.

Rewane disclosed this in a report at his monthly economic news and views presented at the Lagos Business School (LBS), executive breakfast meeting tagged: “Nigeria’s Make or Break,” a copy of which was made to THISDAY Tuesday. He also revealed that the retail sector of the Nigerian economy enjoyed significant increase in cashless transactions which according to him also climbed from 9 per cent in 2010 to 12 per cent in the first quarter of this year.

The report also said that forex demand decreased by 10.5 per cent from $2.8 billion in April to $2.5 billion in May

“Total Baker Hughes oil rig count dropped from 14 in March to 13 in April. The retail sector has experienced an increase in walk in traffic and sales. This can be attributed to post election spending and optimism. Supermarket operators have grown product base to attract middle class as the industry enjoyed annual growth rate of 10 per cent. But the formal retail sector remains hugely untapped,” he added.

Commenting on the real estate sector, Rewane argued that price discovery mechanism remains faulty in the sector, adding that high brow properties in Ikoyi, Victoria Island and Lekki axis, are seriously experiencing high vacancy factor and decreasing values

According to the financial market experts, middle and low end properties are on the other hand, experiencing increased values and low vacancy factors experience