The World Bank has approved the recently cashless banking policy announced by the Central Bank of Nigeria (CBN). The approval is based on the fact that the policy will fast track the nation’s financial sector.
The World Bank believes that what is considered normal in Nigeria by moving cash around will take the nation’s financial sector backward.
It opines that Nigeria society must move along with the world towards improving the norm of a cashless society, as it will develop a vibrant market.
It should be recalled that CBN cashless policy was announced to take effect from June 2012.
Although this has created a lot of anxiety from general public and stakeholders, the senate committee on Banking and currency has organized a public hearing where the Governor of CBN, Sanusi Lamido stated that the cashless policy will enable the economy and the Banking system to grow.
The Apex Bank Governor has however said that CBN will embark on enlightenment campaigns and any adjustment will be made if found necessary.
Meanwhile, according to a report published by 234Next, finance experts in Nigeria say people are reluctant in adopting the “cashless” ideology and are still embracing cash transactions over e-payment.
“A cashless society is a culture where no one uses cash, all purchases being made are by credit cards, charge cards, cheques, or direct transfers from one account to another through mobile banking. The cashless society envisioned refers to the widespread application of computer technology in the financial system.”
“The biggest barrier to change is change itself. It costs an average of N4 to print a note. Consider how much it costs the country to print the notes in circulation,” Valentine Obi, chief executive officer of eTransact International Plc, an epayment solutions provider.
The benefits of a cashless society
To banks and merchants:
Larger customer coverage,
Reduction in cost of operations,
International products and services promotion and branding,
Increase in customer satisfaction and personalised relationship with customers,
And easier documentation and transaction tracking;
Benefits to government:
It aids adequate budgeting and taxation,
Improves regulatory services,
Improves administrative processes, and reduces cost of currency administration and management.
It aids convenience, as it is available 24 hours a day and seven days of the week.
It also helps reduce transfer costs and processing fees;
It increases processing and transaction time; supports multiple payment options;
and also facilitates immediate notification of all transactions on customer’s account
Read more on the current policies being put in place to ensure its implementation. Click here