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Nigeria's SWIFT Payment Traffic Rises 353% in Four Years

News » Health and Beauty

27th June 2014

Payments traffic on the SWIFT platform in Nigeria recorded an amazing 353 per cent rise in the last four years, according to figures released yesterday and made available to THISDAY.

The development specifically underscores the explosive growth in the value and volume of trading in the country.

The figures released at the SWIFT's  21st African Regional Conference holding in Marrakech, Morocco thus provide more evidence of Africa’s growth and long term trends and especially the rising profile of countries like Nigeria in financial messaging platforms and payment markets.

Africa's growth was particularly marked in the payments markets as volumes rose by almost 21 per cent versus just eight per cent worldwide.

In payments, nearly 80 clearing and settlement systems, including banks rely on SWIFT for the secure messaging connectivity and common message standards essential to their smooth operation.

SWIFT's traffic at a country levels indicate that many have experienced startling and differing pace of growth. In Nigeria, payments traffic grew by almost 42 per cent in the past 12 months and by a staggering 353 per cent in the past four years.

The SWIFT data thus underscores the strong organic growth across Africa and in Nigeria particularly. 

The data revealed that its business in Africa had outperformed the total growth of the business globally. In the year to date, African volumes grew by more than 16 per cent versus 10 per cent growth for SWIFT worldwide, highlighting the vitality of the region.

SWIFT, headquartered in Brussels, is a global provider of secure financial messaging services. It  is a member-owned cooperative that provides communications platform, products and services to connect more than 10,000 financial institutions and corporations in 212 countries and territories.

Specifically it enables its users to exchange automated, standardised financial information securely and reliably, thereby lowering costs, reducing operational risk and eliminating operational inefficiencies.

It also brings the financial community together to work collaboratively to shape market practice, define standards and debate issues of mutual interest.

Speaking at the African Regional Conference (ARC), being held this year in Marrakesh, Head of Africa South at SWIFT, Hugo Smit, says: "Africa is an increasingly important market for SWIFT. Again this year it has outperformed most of our other regions and has proven itself a vital component of our business globally.

"Most importantly, we know that the continent has huge growth potential, so we are committed to dedicating more resources, services and opportunities to the local financial community.”

Smit also stressed the value of his company's data in the story it tells, saying that SWIFT data has been independently validated to be closely correlated to economic activity through the development of the SWIFT Index.

The SWIFT Index provides a range of proprietary fact-based indexes which can be used to derive an early indication of the short-term evolution of the Gross Domestic Product (GDP) for a country or group of countries.

“Rising SWIFT traffic volumes are therefore an indicator of economic growth. The figures revealed today show strong organic growth across Africa and in Nigeria particularly, and serve as validation of the positive growth trends we are witnessing in the region," according to the statement from the company.

The growth figures are the latest data showing a long-term growth trajectory with Africa’s total Swift traffic rising by 63 per cent over the last four years, compared to the total growth of traffic globally of 36 per cent.

Payments had been the locomotive of this long-term growth, with a 75 per cent rise over four years (versus 37 per cent globally) but securities also significantly outperformed, with a rise of 52 per cent across Africa versus 41 per cent globally in the same time period.
North African growth has been indicated as not been as strong as the rest of the continent, struggling to recover to the same levels following the Arab Spring; for example, SWIFT traffic growth for Morocco for the full year 2013 was just 2.7 per cent compared to 39.5 per cent in 2011.

The statement however noted that volumes are beginning to recover with 5.8 per cent in the year to date and the long term trends is very positive, with 49 per cent growth in four years.

Head of Middle East & North Africa, SIDO Bestani, said: “It’s clear that North Africa has not yet recovered to its earlier growth levels, but the positive story is that volumes are coming back. It’s also important to note that in Morocco, for example, payments growth is very similar to that in Europe, and that securities traffic growth is aligned with Africa. So taking a broader view, the trend in Morocco is very positive.”


Article Credit: This Day News

Updated 5 Years ago

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