General News
Cashless Society: Is Nigeria Winning
![](https://www.nigeriacommunicationsweek.com.ng/wp-content/uploads/2018/11/CASHLESS-SOCIETY.jpg)
By Adeniyi Ogunfowoke
Technology is forcing both developed and emerging economies to innovate. The cashless society is one such innovation.
Cashless society according to Wikipedia describes an economic state whereby financial transactions are not conducted with money in the form of physical banknotes or coins, but rather through the transfer of digital information (usually an electronic representation of money) between the transacting parties.
The Beginning of the Cashless Society Drive
In Nigeria, the cashless society drive began in 2012. In order to limit the liquidity in circulation, the Central Bank of Nigeria (CBN) says that cash-based transactions should not exceed N500,000 for Individuals and N3,000,000 for Corporate bodies. The CBN added: “Our economy uses too much cash for transactions for goods and services, especially for buying and selling. This is not how it is done in other progressive countries of the world where there are other payment options such as, Debit and Credit Cards, Bank Transfers, Bank Direct Debits, Automated Teller Machines ( ATMs), and even Mobile Money. These achievements have been brought about by the changing needs of their people, competition among banks, and other companies, including changes in technology. Our major focus is to increase the volume of all available payments instruments in Nigeria.”
The Phase 1 of the scheme took off in Lagos on January 1, 2012, while additional states, namely Abia, Anambra, Kano, Ogun and Rivers States, as well as Abuja, were involved in Phase 2, which commenced on October 1, 2013. Phase 3 which is the final phase of the policy’s implementation commenced in the remaining 30 states of the federation on July 1st.
In other words, the cashless society has been managed and implemented for six years now. Six years down the line, is the Central Bank of Nigeria winning the cashless society war?
Is Nigeria Winning the Cashless Society War?
Despite the fact that Nigerians struggle to accept change, a good number of them, especially in the urban and semi-urban areas have wholeheartedly embraced the cashless society scheme. This is probably because they have no choice. You can say that the country is winning the cashless society war in urban areas.
Currently, you will find an average Nigerian or a market woman with an ATM card. To offer this more credence, data from an e-payment channel report in a series from the NBS, produced in collaboration with the CBN, reveal that 457 million transactions valued at N32trn were recorded on the channels in Q1 2018 and the NBS data also show that 54 million PoS transactions were recorded in Q1 2018, representing increases of 13% q/q and 101% y/y.
Furthermore, with a smartphone, you can use either Unstructured Supplementary Service Data (USSD) or mobile app to perform banking transactions at any time of the day. Again, the NBS report reveals that mobile payments recorded 15 million transactions valued at N329bn (US$1.07bn) in Q1. The value of the transactions grew by just 21% y/y and accounted for only 3.3% of total electronic transactions.
Off the cashless society policy, a notable achievement is the rise of digital payment gateways. Some of them include Jumia Pay, and others.
Owned by Jumia, Nigeria’s No.1 shopping destination, Jumia Pay enables Nigerians to make secure online payments while shopping on Jumia platforms. The payment gateway uses state-of-the-art technology and procedures to protect your online transactions. Interestingly, you get guaranteed 5% cashback for using Jumia Pay.
By the same token and in line with the cashless society policy, millions of customers who shop on Jumia, or book hotel and flights, or order food from their favourite restaurants now enjoy the services of Jumia Pay. This is because they can now pay for their transactions using Jumia Pay.
In addition to this, customers will enjoy 5% off all their orders on Jumia. If you combine this with the amazing Black Friday discounts Jumia is offering, customers will definitely save a lot of money whenever they shop on the ecommerce platform. The key reason for doing this is to encourage Nigerians to settle transactions through the use of digital payments rather than via cash.
Unequivocally, the painstaking efforts of the CBN in implementing the cashless policy are truly paying off. However, there is quite a lot to that still needs to be done. Many in the rural areas are yet to be reached.
They largely still use cash that is not even kept in the bank. This means there are still millions of unbanked Nigerians out there. The cashless society campaign needs to be taken to their doorsteps. Importantly, the cashless society message should be available in local languages. Ultimately, the CBN has to take a look again at the fees banks charge customers. Understandably, banks need to cover their costs and expenses but it should not be at the expense of their customers.
Sweden is the most cashless society on the planet, with barely 1% of the value of all payments made using coins or notes last year. Nigeria is nowhere near Sweden. But we are on the march towards a cashless society. The country only needs to integrate more inhabitants of rural areas into the scheme, effectively regulate banks and fintechs and continue to push the cashless society campaign.
General News
FG Drops Merger of NCAA, NAMA
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The Minister of Aviation and Aerospace Development, Festus Keyamo has disclosed that President Bola Tinubu has stepped down the merger of the Nigeria Civil Aviation Authority (NCAA) and the Nigerian Airspace Management Agency (NAMA) as recommended by the Steve Oronsaye report.
He also revealed that the aviation industry was exempted from the foreign travel ban placed on federal government officials last year. The President announced the ban which took effect from April last year.
Keyamo disclosed that the aviation sector was exempted from the ban because President Tinubu is desirous of change and growth in the sector.
The ban was placed following the rising cost of travel expenses by Ministries, Department and Agencies of Government.
The memo released last year stated: “Considering the current economic challenges and the need for responsible fiscal management, I am writing to communicate Mr Presideni’s directive to place a temporary ban on all publicly funded international trips for all federal government officials at all levels, for an initial period of three months from 1st April 2024.
“All government officials who intend to go on any publicly funded international trips must seek and obtain Presidential approval at least two weeks before embarking on any such trip, which must be deemed necessary”.
The Minister disclosed the reasons for the exemption in Abuja at the 25th anniversary celebration of the Nigeria Civil Aviation Authority (NCAA).
On the merger of NCAA and NAMA, he said: “From modest beginnings, we have witnessed remarkable transformations in our sector, ranging from enhanced supervisory measures and policies formulation, safety and security oversight, robust legislative and regulatory frameworks, advancements in air traffic management, development, expansion and certification of airports, accurate meteorological services, timely accident investigations, manpower development, and indeed, the growth of indigenous airlines.
“These achievements have not come without challenges. However, with the efforts of past administrations and the total support of the present administration under the dynamic leadership of His Excellency President Bola Tinubu through the Renewed Hope Agenda and the five focus areas of the ministry, we have overcome challenges and reached new heights.
“NCAA is a child of God, and despite turbulent waters and attempts sometimes to kill the NCAA, the NCA has survived 25 years. And I’m sure you know that any child that is born at the age of 25, of course, is undoubtedly an age of maturity.
“The Oronsanye reports also recommended the merger of NCAA and NAMA. And so that was also another attempt to kill the NCAA. That report was passed from Jonathan’s government to Buhari’s government, and then to the present government.
“It was one of the first items we considered in this government. So the Oronsanye reports came up that day, and the president went on and on, considered every item in the Oronsanye report, and asked the council to vote. And for each item, they would listen to the ministers and so the president came to the merger of NCAA and NAMA as one body.
“I raised my hand, I spoke for about five minutes and because we have a wonderful president who listens to good counsel and good arguments, after I finished speaking, he said, an item dropped, the merger of NCAA and NAMA would not remain”.
On the reasons for the exemption, he said: “It is a fact that the aviation sector remains a pillar of national development, facilitating trade, tourism, investment, and cultural exchange. Whilst it is yet to realize its true potential in terms of contribution to our nation’s Gross Domestic Product (GDP), we must renew our commitment to ensuring a more progressive, sustainable, inclusive, innovative, and prosperous aviation industry.
“This necessitates the continuous adoption and integration of emerging technologies, enhancing infrastructure, and investing in human capital development to keep our skies safer and secure and attain cohesive and efficient air transportation services.
“The President directed that foreign travels should stop, except in exceptional circumstances. Last year, there was a memo around March that said it was for three months, and the President, because of his desire to ensure that we are frugal in our spending; there was another memo again in December reiterating that memo last year we should cut down on foreign travels, except by direct presidential approval.
“But let us also give particular thanks to Mr. President, because despite that memo, since last year, he has made an exception for the aviation industry. I wrote a memo to him after that directive on behalf of the entire agency that says; Sir, we respect your directive; yes, we need to be frugal because the Nigerian people have also tightened their belts in the face of the economic reforms that are taking place.
“However, because of the safety of this sector, Sir, we need to make some exceptions for this sector. And the President graciously granted this for the aviation sector”.
General News
Researchers Develop Innovative Treatment for Malaria
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An international team of researchers have introduced a groundbreaking drug, known as the covalent kinase inhibitor, which shows promise in combating treatment-resistant malaria.
Developed by chemists and bioscientists from the University of Glasgow, this innovative drug could surpass current medications by effectively targeting and disabling the proteins used by the Plasmodium falciparum parasite to replicate within the human body.
This is according to a report titled “Targeting Pf CLK3 with Covalent Inhibitors: A Novel Strategy for Malaria Treatment.”
The development, led by chemists and bioscientists from the University of Glasgow, was outlined in a November publication in the “Journal of Medicinal Chemistry.”
According to the researchers, covalent inhibitors form bonds with proteins, usually irreversibly modifying them, and this new drug could be more effective than current medications at all stages of malaria infection.
The new drug works by permanently disabling a protein that Plasmodium falciparum, one of the mosquito-borne parasites that spread malaria, uses to replicate itself inside the human body.
The drug also has the potential to work as a single-dose treatment, a significant improvement over existing therapies.
This breakthrough marks the first adaptation of an approach from cancer treatments to tackle malaria.
The team expressed optimism that the parasite is unlikely to develop resistance to the new drug, which targets the protein Pf CLK3 and disrupts the parasite’s ability to splice RNA.
The researchers, including Prof. Martins Emeje from the Nigerian Natural Medicines Development Agency and Prof. Oyewale Tomori from the West African Academy of Sciences, emphasise the importance of regular calibration and accreditation for medical laboratories to ensure accurate results and reliable treatment.
General News
Nigeria to Host ICEGOV 2025, A Milestone in Digital Governance and Global Leadership
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The Federal Ministry of Communications, Innovation & Digital Economy, Nigeria has been officially confirmed as the host country for the 2025 International Conference on Theory and Practice of Electronic Governance (ICEGOV) edition.
This confirmation by the United Nations University Operating Unit on Policy-Driven Electronic Governance (UNU-EGOV) marks a historic milestone in our nation’s digital transformation journey, showcasing Nigeria’s leadership in digital governance, innovation, and technological advancements on the global stage.
ICEGOV is a prestigious global conference that convenes governments, academia, international organisations, industry leaders, and civil society to exchange insights, research, and best practices in electronic governance.
Hosting this event presents a unique opportunity to strengthen Nigeria’s digital ecosystem, foster multidisciplinary collaborations, and drive policy innovations that will shape the future of governance in Africa and beyond.
Speaking on this momentous achievement, the Honourable Minister of Communications, Innovation & Digital Economy, Dr. ‘Bosun Tijani, stated: “Nigeria’s selection to host ICEGOV 2025 is a recognition of our efforts to drive digital transformation and innovation in governance.
“I am a firm believer in the importance of the academia and research in supporting global discussions on e-Governance and we have seen this in some of the input in government initiatives like the National AI Strategy and the National Digital Economy and e-Governance Bill which are laying the foundation for the growth of Nigeria’s Digital Economy.
“As we prepare to welcome you all to Nigeria, we look forward to very useful outcomes that will be beneficial for the growth of digital governance and policy development globally.”
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