· Reveals electronic payment transactions rose to N122.98trn in July
· Projected to hit N126.7trn in August
Nume Ekeghe
The Managing Director and Chief Executive of Financial Derivatives Company (FDC), Mr. Bismarck Rewane, has called on the federal government to extend the recently approved increase in the salary of military personnel to other security agencies, warning that excluding them could create distortions within the country’s security architecture.
This is as the economist also revealed that the value of electronic payment transactions in Nigeria increased by 5.54 per cent month-on-month to N122.98 trillion in July 2026, up from N116.52 trillion recorded in June. He projected that the figure would climb further to N126.70 trillion in August, as seasonal spending and the continued adoption of digital payment channels lift transaction values.
Rewane, while weighing in on the increase in emoluments, in a presentation he made at the August edition of the Lagos Business School (LBS) Breakfast Session, a copy of which was obtained by THISDAY yesterday, argued that following the federal government’s approval of a comprehensive wage review for personnel of the Nigerian Army, there should be a corresponding salary adjustment for the Nigeria Police Force, Nigeria Security and Civil Defence Corps (NSCDC) and other security agencies to maintain equity and morale across the security services.
The wage review approved for the Nigerian Army provides for an 80 per cent increase for lower-ranking personnel, 50 per cent for officers from warrant officers to colonels, and 30 per cent for officers from colonels to generals, with the total cost estimated at N924 billion.
While acknowledging the importance of improving the welfare of military personnel, Rewane warned that the policy would inevitably have wider implications for the public and private sectors.
He said the salary adjustment would affect wage relativities across the public service and place pressure on private sector employers to review compensation packages.
“The knock-on effects will affect the rest of the public sector and the relativity factor for the private sector,” he stated.
He further cautioned that higher wages without a corresponding increase in productivity could fuel inflation, estimating that the adjustment could add between two and three percentage points to inflationary pressures.
“This will push wages higher without productivity. Inflation is bound to increase by a minimum of two to three per cent,” he noted.
Rewane stressed that fairness demanded a compensating salary review for all other security agencies.
“There must be a compensating review of all other security agencies and armed forces, including the Police and Civil Defence,” he said.
He, however, warned that such an expansion of the wage review would significantly increase recurrent expenditure across all tiers of government.
According to him, extending similar salary adjustments across the security services would lead to “a ballooning of government revenue expenditure at all levels,” further tightening fiscal conditions.
The economist urged policymakers to balance the imperative of improving the welfare of security personnel with measures that enhance productivity and strengthen government revenue in order to avoid worsening inflationary pressures and fiscal deficits.
Meanwhile, the report presented at the LBS showed that the Nigeria Instant Payment (NIP) platform remained the dominant payment channel, accounting for the bulk of transaction values. NIP transactions rose by 4.89 per cent to N109.59 trillion in July from N104.48 trillion in June.
The report also showed that the Nigeria Electronic Funds Transfer (NEFT) platform recorded the fastest growth among the major payment channels, with transaction values surging 18.03 per cent to N6.48 trillion from N5.49 trillion in June. Point-of-Sale (PoS) transaction values increased by 5.56 per cent to N6.65 trillion, while cheque transactions rose modestly by 4.35 per cent to N264 billion.
Looking ahead, FDC projected that electronic payment transactions would expand further to N126.70 trillion in August. NIP transaction value was expected to rise to N112.21 trillion, while PoS transactions are forecast to jump sharply to N7.97 trillion as consumer spending strengthens during the holiday period. Although NEFT transactions are expected to moderate slightly to N6.29 trillion, overall electronic payment activity is projected to remain resilient, reinforcing the steady transition towards a cashless economy.
The latest monthly performance mirrors the longer-term expansion of digital payments highlighted in the Central Bank of Nigeria’s (CBN) 2025 Annual Report and Statement of Accounts.
According to the apex bank, the value of electronic payment transactions increased by 26.07 per cent to N3, 458.77 trillion in 2025, while transaction volume rose by 2.62 per cent to 47.88 billion transactions.
The CBN attributed the growth to stronger consumer preference for digital payment channels, expanding e-commerce activity and continued improvements in payment infrastructure.
It stated: “Analysis of retail payments showed notable changes between 2024 and 2025. The volume of e-payments transactions increased by 2.62 per cent to 47,879.73 million in 2025, compared with 2024. The value of transactions also rose by 26.07 per cent to N3, 458.77 trillion.
“The increases reflected user preferences, adoption of digital channels, growth in e-commerce, and infrastructure improvements.”
At the recent launch of the Payments System Vision 2028 (PSV 2028), CBN Governor, Mr. Olayemi Cardoso, had reaffirmed the apex bank’s commitment to achieving 95 per cent financial inclusion and enabling “faster-than-a-blink” digital transactions through sustained reforms of Nigeria’s payment ecosystem.
