Electronic payment contributes $640 million to Nigeria’s GDP - Moody's

14 Mar 2016
Chibuike Oguh


Countries which saw large increases in card usage also saw larger contributions to overall growth in their economies.

Chief Economist of Moody’s Analytics Mark Zandi

The usage of electronic payments added $640 million to Nigeria’s GDP between 2013 and 2015, according to a report released by Moody’s Analytics last week.

The report showed that e-payments made no contributions to Nigeria’s GDP in 2011 and 2012, but contributed $160 million in 2013, $200 million in 2014, and $270 million in 2015.

The Moody’s Analytics report was commissioned by Visa, a global payments giant and studied e-payments in 70 countries (constituting 75 percent of global GDP) between 2011 and 2015.

The average contribution of e-payments to Nigeria’s GDP between 2011 and 2015 stood at 0.03 percent, according to the report.

Between 2012 and 2015, the Moody’s Analytics report stated that Nigeria’s e-payments industry supported 17,810 jobs in 2013; 21,390 jobs in 2014; and 28,480 jobs in 2015.

In Africa, increased usage of e-payments contributed 0.05 percent to GDP and an average of 8,000 jobs between 2011 and 2015. In Ghana, e-payments added $50 million (or 0.03 percent) to GDP and 2,820 jobs. In Kenya, e-payments added $70 million (0.03 percent) to GDP and 5,330 jobs. In Rwanda, e-payments added $10 million (or 0.02 percent) to GDP and 1,020 jobs. In South Africa, e-payments added $3.11 billion (or 0.18 percent) to GDP and 26,550 jobs.

“Africa had the fewest average number of jobs added per year from increased card usage, which is not surprising given the region’s low usage rates and developing financial infrastructure,” the report said.

Globally, electronic payments added $296 billion to GDP in the 70 countries studied between 2011 and 2015. This resulted in the creation of about 2.6 million jobs on average per year over the five-year period, or about 0.4% of total employment in the 70 countries.

In emerging markets, electronic payments contributed 0.11 percent to GDP while it contributed 0.08 percent to GDP in developed markets.

“Electronic payments are a major contributor to consumption, increased production, economic growth and employment creation,” said Mark Zandi, the Chief Economist of Moody’s Analytics.

“Those countries which saw large increases in card usage also saw larger contributions to overall growth in their economies.”

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