FAB SCHOOLS NIGERIA

CASHLESS ECONOMY PHASE II: HOW PREPARED IS NIGERIA FOR THE NEW MOVE?

Written by: Boluwatife Nathaniel Awofadeju.

The introduction of the cashless economy initiative by the Central Bank of Nigeria (CBN) though it is not a new initiative but a good step in the right direction of preserving and improving financial transactions that are done within the economy. Phase one of this initiative was implemented in Lagos state, Nigeria and it included the introduction of more ATM machines, POS terminals, the use of more ATM cards for business transactions, internet banking transactions and mobile banking platforms and the setup of maximum amounts to be deductable by individuals or corporate bodies over the counter in one day transaction.

All of these are tools already applicable outside the shores of Nigeria but lessons gained from the Lagos story shows that enlightment of the populace needed to be improved upon as well as the enlightment of individuals especially those living in rural communities on how to enjoy mobile banking transactions from their various commercial banks. According to the Head, Shared Services CBN, Mr. Chidi Umeano; rural communities were barely captured (in terms of mobile banking services) in the Lagos project by a mere forty percent, still he is fully confident that the apex bank would be able to improve on past errors and misdeeds that occurred in the Lagos project to make such corrections serve as a guide in the implementation of the second stage of the cashless policy project.

In a recent interview conducted on Channels Television’s programme “BUSINESS THIS MORNING”, Mr. Chidi explains that the second phase would be implemented in Aba, Abuja, Port-Hartcourt, Borno, Kaduna and the Federal Capital Territory (FCT), Abuja. According to him, these places coupled with Lagos form the major areas where more bulky financial transactions are conducted in the country. For each of the states, the state co-ordinators in each of the CBN branches would be responsible for the full implementation and awareness creation of the policy in their various domains; starting from within the state branches to conducting meetings with commercial banks and other financial institutions within each state chapter and the eventual awareness preparation that would be given to the individuals living within the various states.

Pecularities and unique features in the different states and the nature of business and financial activities would also be thoroughly considered as what is a peculiar feature in the terrains of one state might be different from that of another, therefore solutions and suggestions for improvements of the cases applicable for each of the states might be different as well. Mr. Chidi also believes that if at least fifty to sixty percent of the overall goal of the cashless economy initiative is been achieved; it would eventually be great for the country; implying that the policies, decisions and plans that would be made by the Monetary Policy Committee (MPC) would be more effective for the economy; as the formal sectors which forms the major driving force of Nigeria would be positively affected by these actions and decisions.

Asides from the preparatory stage being implemented; select individuals within each of the state branches of the CBN known as “cashless champions” are also going to be coordinators of the cashless initiative in their CBN organizations and the states as well. In addition, a new customer complaint department has being established within the walls of the CBN; this department would be responsible for receiving queries, questions, suggestions and so on from customers as regards to their reaction to the initiative before and when the policy would be established.

Though; it may be a new development that might initially affect ones’ spending capacity, saving ability and standard of living; but in due time, Nigerians would eventually be prudent in their spending as this initiative is meant to reduce high cashflow in circulation within the economy by 80%, increase more access and channels of investments and more convenience in investing and reduce cost of capital and the cost of services that banks and other financial institutions offer to their customers. He stated that if Nigerians are being charged any amount for transacting business with their ATM cards in any bank ATM machine whatsoever, such individual(s) have the right to report the treatment they receive to the CBN customer compliant department. This and any other queries can be forwarded to them for immediate treatment.

The question now is this “how prepared are Nigerians for this new move”. Illiteracy must be erased in this economy for full understanding of this concept especially for our rural dwellers. Let’s accept change now; it’s the best solution for Nigeria’s move to the next level. If you don’t fully get the terrain of things as regards this initiative, then ask people and qualified experts for proper explanations, be IT complaint and surf on the net regularly, watch or listen to business, investment programs or adverts on the television and on the radio, read newspapers and magazines, go to your bank or financial institution and ask questions; be informed always, as the saying goes “knowledge is power”, don’t be caught in the dark so that you won’t be left alone when the ship comes to take its passengers, we all must get to the promised land together. Don’t be passive to change, accept it, apply and adapt it to your life and grow in it; Nigerians change is coming soon, are you ready for it?

BOLUWATIFE NATHANIEL AWOFADEJU

(+2348132327213)

(boludearie@yahoo.com)