Since moving to implement the cashless economy policy in Lagos in 2012, the Central Bank of Nigeria has been immensely invested in this ambition to reduce the physical cash in circulation and encourage the use of electronic measures for payment of goods and services. The Apex Bank also explained that the policy would help in scaling up financial inclusions, whilst reducing criminal cases such as robbery, kidnapping, terrorism and extortion. Since the Naira redesign however, there has been an evident scarcity of physical money, thus prompting the enactment of cashless transactions across the country.
The idea of a cashless society has the potential to encourage numerous social and economic opportunities for Nigerians, if properly implemented. The transformation in this financial landscape is said to have had a significant impact on the government, businesses and the society. With the world being so dependent on technological advancements, the traditional approaches to transaction have become so infeasible and more uncomfortably insecure. The cashless system offers a wide range of benefits such as faster transactions and reduced risks like theft and fraud.
CBN moves to reduce the dependence on physical payments.
With the advancements of digital technology, it has become increasingly achievable than ever. Mobile transfers, electronic funds transfer, payment apps and digital wallets have been inculcated into our everyday transactional schemes in Nigeria and globally. With this development, Nigeria is said to be on the path to becoming a cash-lite economy which presents an tremendous opportunity for digital payment providers. In Sweden for instance, over 85% of their transactions are performed electronically which has helped the country in creating innovative solutions like the national digital currency, to their economic problems.
The CBN has overtime, driven its efforts towards establishing a cashless economy by enacting various initiatives to promote the use of digital payments and reduce the country’s reliance on physical payments. The digital payment directive which was issued by the CBN in 2012 was a major indication of the institution’s efforts. This directive implored financial institutions to further invest in digital payment systems, promote the usage among customers and collaborating with the CBN to enact a strong regulatory framework. This initiative was designed to improve transparency and modernism in the financial sector.
Less cash and promote the use of electronic transactions.
As a result of this initiative, the financial sector witnessed immense developments by the expansion of financial access point such as point of sale (POS) terminals, mobile cash facilities, as well as the proliferation of e-payment services. Recently, CBN emerged with a new cash transaction policy, imposing the daily cash withdrawal limit of N500,000 for individuals and N3,000,000 for corporate organizations, all in a bid to reduce the amount of physical cash in circulation and promoting the use of electronic transactions.
Since adoption, this cashless policy has made substantial progress over the years. The number of POS terminals for instance, has significantly increased from about 155,000 to over a million between 2017 and 2022. NIBSS also indicated that the recorded electronic transactions under the NIP platform surged by 42 percent from N272 trillion in 2021 to N387 trillion in 2022. This development can be attributed to the increase in awareness and availability of digital payment services.
Nigerians are easing themselves into the digital payment options.
Amidst the present shortage of Naira in circulation, Nigerians continue to ease themselves into the convenience of digital payment options. Financial institutions have been able to implement the operation of seamless transactions online and platforms like JumiaPay, Palmpay and Opay have been able to assist its customers with seamless payment solutions. Though with some discrepancies such as occasional transaction failures, the CBN’s efforts at modernizing the financial system in the country must be immensely commended for its encouragement of financial inclusion across the country.
Related Link
Central Bank of Nigeria: Website
Cashless policy, an opportunity for growth. – Policy designed to improve transparency and modernism of financial sector. – Express your point of view.
Cashless policy is a good policy and it is a great opportunity for growth. Unfortunately, we are not there yet. A lot of people still don’t have access to mobile means of keeping money so they deal in cash. The policy is badly implemented.
The introduction of cashless policy will have good advantage on the economy which will later benefit the majority of the citizen.
This goal of reducing the amount of physical cash in circulation has received a significant amount of investment from the Central Bank of Nigeria.
It is to the bank’s credit that they have highlighted that the policy will assist in expanding financial inclusions while simultaneously lowering the number of criminal prosecutions.
Ever since the redesign of the Naira, there has been a discernible lack of real money, which has resulted in the widespread implementation of cashless transactions across the country.
Cashless policy is a good policy that will help the country and improve things and transparency also but the way is been implement is not okay and as cause issue in the country
It is said that the shift in this financial landscape has had a profound impact on the government, corporations, and society as a whole.
If it is carried out in the right way, the concept of a cashless society has the potential to open up a great deal of social and economic opportunity for Nigerians.
The Central Bank of Nigeria’s (CBN) efforts to modernize the financial system in the country should be commended to the highest possible degree for their promotion of financial inclusion across the nation.
This program was developed with the intention of bringing greater openness and contemporaneity to the financial industry.
Almost everyone will eventually reap the rewards of a cashless society once it is fully implemented.
Truthfully, The cashless system offers a wide range of benefits that will help improve transparency and modernism in the financial sector. It currently difficult to cope with the system.it would be better if there is provision for better ways to make it easy.
The adoption of a cashless policy is commendable and presents a fantastic expansion prospect. I have no doubt that cashless transactions will become the norm and will require less explanation in the near future.
The adoption of a cashless policy is a progressive move that has tremendous potential for expansion. We are not there yet, unfortunately. Since many people still don’t have access to mobile means of retaining money, transactions are typically conducted with cash.
Policy designed to improve transparency and modernism of financial sector. Is not opportunity to increase growth because banks network is too or over bad. Bad network in Nigeria banking system
Honestly, cashless policy is the greatest thing that has ever happen to Nigeria. It will reduce the dependent on physical cash thereby prevent rough handling of the Nigerian currency. it ensure easy transaction. you don’t to go about with the physical cash.
Our less use of the physical cash is a pointer to the fact that we are developing. The cashless policy will definitely several opportunities for Nigeria. Transaction will be made without fear of armed robber attacks or any form physical theft.
The Central Bank of Nigeria has put a lot of resources towards achieving its objective of decreasing the amount of currency in circulation.
If successfully implemented, the concept of a cashless society might foster a variety of social and economic opportunities for Nigerians.
A policy intended to increase the financial sector’s modernity and transparency. Since the banks’ network is too or excessively bad, there is no potential to expand expansion. Banking system in Nigeria has a poor network.