Nigeria’s cashless campaign goes nationwide

In spite of obvious hiccups, the cashless initiative of the Central Bank of Nigeria (CBN) goes live in the 36 states of the federation and Abuja, the Federal Capital Territory (FCT) today.

The policy, one of the reform programmes of former CBN governor, Sanusi Lamido Sanusi (now a first class traditional ruler in his home state, Kano) was designed to promote financial inclusion, reduce risks associated with carrying cash and also lower the huge cost of managing cash in the economy by the apex bank.

The programme was initiated about 30 months ago with the first pilot in Lagos, Nigeria’s commercial capital. It was later extended to about six states in the country.

Emir Sanusi’s successor, Godwin Emefiele had in pursuant to the policy, removed the three per cent charge on cash deposits above N500,000 for individuals and N3 million for corporate organizations for lenders in the country.

The financial sector regulator said it has not changed its mind to roll out the programme across the country today.

Analysts say going by the low success rate of the programme in states where it had been implemented, the apex bank ought to have tarried a while.

Under the initiative, alternative channels of payment such point of sales (PoT) terminals, automated teller machines (ATMs), e-channels such web based money transfers were encouraged by the apex bank in an economy widely believed not be literate.

While the PoS terminals have largely failed to live up to people’s expectation owing to poor service delivery (itself due to dearth of infrastructure especially bandwidth for internet connectivity), the ATMs are more often than not out of service. Customers still get debited for transactions that were initiated but never concluded. It takes several agonizing days for customers to get reversals of such transactions.

Long queues that used to be the hallmarks of the banking halls have moved to ATM points. Queues in the banking halls have not given way either. So, for bank customers in the country, it is fear of the Nile and deep blue sea. "When you need money, you have money in your account, the challenge that comes to your mind is how to get the money. Going to the counter is problem while going to queue up at an ATM point is also whahala," Esther, a civil servant lamented.

While ATM related frauds have reduced tremendously, according to the CBN, insider abuse that has facilitated frauds associated with online banking still persists.

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