E-Financial
Dissecting CBN’s Cashless Programme In A Cash-Oriented Society

In 2012, when the Central Bank of Nigeria [CBN] introduced the cashless policy, the crux of the objectives was to encourage more electronic-based transactions for payments of goods, services, and transfers, etc.
Between 2012 and now, come one say if the policy has achieved these objectives? Has the CBN encouraged more electronic-based transactions for payments of goods, services and transfer? Is there an answer in the CBN’s e-collection platform, a solution that allows electronic collection of government fees, taxes and custom duties, which equally let government agencies exploit the full capabilities of the technology to transform its services to the public?
The digitization of collection process may have served the CBN as a means to achieve its cardinal objective, which is to engender a cashless environment.
According to Director, Banking and Payments System of the CBN, Dipo Fatokun in a report, the cashless policy drive development and modernization of CBN’s payment system in line with Nigeria’s vision 2020 goal of being amongst the top 20 economies by the year 2020.
The cashless policy, he concurred, is designed to reduce, “not eliminate the amount of physical cash” circulating in the economy, while encouraging more electronic-based transactions.
The CBN director agreed that the cashless policy has reduced the cost of banking services including cost of credit and drives financial inclusion by providing efficient transaction options and greater reach, and improves the effectiveness of monetary policy in managing inflation and driving economic growth.
However, has this policy driven financial inclusion, reduce high security and safety risks, facilitate the growth of e-commerce, foster transparency and curb corruption/leakages?
To answer these questions, let us dissect how the policy has affected banking, corporations, government and the banking public.
For the banks, again let us turn to Fatokun, the policy has enhanced profit and income line, reduced risk of cash related attacks, reconciliation and tracking of transactions and payments.
It has opened efficient and effective means of processing transactions on e-channels thereby reducing cost of operations such as cash handling and other associated cost of dealing with cash transactions.
For corporations, research shows that the policy has given the corporations faster access to needed capital, reduced revenue leakage and reduced cash handling cost.
With the myriads of e-channels installed, a corporation can easily make bulk payment across multiple banks in real time.
Added to that, accounts reconciliation, which is described as a “monster” by MD/CEO, PFS the company behind the cheque truncation regime, Yele Okeremi, is now being nip in the bud.
For bank consumers, the CBN cashless policy has increased convenience, cheaper access to (out-of-branch) banking services and access to credit.
This is debatable: my company approached a bank for an overdraft. The bank asked for collateral that is above the overdraft.
In short, the bank did not grant the over draft because our company did not produce the collateral. Case closed.
The policy, according to the CBN, has reduced over-all cost of handling cash and risk of cash related crimes.
This is accurate: Most bank customers have now adjusted to making payments using e-channels such as card, PoS, online and mobile banking as well as ATM for cash withdrawal.
Besides, bulk payment across multiple bank accounts is now possible. With a mobile app installed on my smart phone, I regularly make payments to friends and siblings without visiting the banking hall. Making payment with the PoS is catching on but it can be better.
Paying for good on e-commerce sites in Nigeria is now trending. Booking hotel room, buying air ticket is now a fad.
For government, the policy has brought firmer grip on monetary policy and its attendant effects on inflation and economic stability, greater financial inclusion, increased economic development and transparent tax collection.
It has also increased internally generated revenue [IGR]. The success stories of increased IGR by some state governments such as Lagos would include the introduction of the Lagos State Government Electronic Banking system of Revenue Cycle Management (LASG EBS-RCM) with the Direct Bank Lodgment System (DBLS) of the revenue collection process in 2002.
IGR has grown annually at an average of 6%.
After the pilot of the cashless policy in 2012, IGR grew by 10%.
In Ogun State, which introduced a cashless pilot scheme in 11 state-owned tertiary institutions in response to revenue leakages, witnessed increase in revenues in 2012 to the tune of N2.5billion, which is 195% increase from reported revenues in first quarter of 2011 without an increase in fees.
However, to plug loopholes in the Federal Government revenue collection system and enthrone a new regime of transparent and accountable IGR management, the Office of Accountant General of the Federation [OAGF] has created Government Integrated Financial Management Information System [GIFMIS] in association with Remita, the asset of SystemSpecs, which is the CBN payment gateway.
This is done in collaboration with Deposit Money Banks (DMBs) and other electronic collection channels like cards, PoS, ATMs, mobile wallets.
This, too, is in line with the CBN e-payment policy.
With GIFMIS, all government payments are now routed to the CBN Payment Gateway for onward payment into beneficiary’s accounts.
This indicates that all 700 ministries, directorates and agencies [MDAs] are involved directly in this set up. Meanwhile, the Payment Gateway, hosted by Remita, is connected with the CBN T24 banking application and GIFMIS solution for an end-to-end automation of payment and collection processes of federal government.
The CBN policy has enthroned a new regime of transparency in the allocation of funds, as the budgets of all 700 MDAs is handed over to individual management, separate from that of the supervising ministry.
As it stands MDAs cannot spend beyond the approved budget. If you understand what operates in the MDAs environment, cash is king.
The CBN has successfully eliminated cash and enthroned e-collection and e-payment. Through this process, the government has already saved over N500 billion. One wonders who were the beneficiaries of this N500 billion?
Anyway, the journey is still far, the road tortuous. From the above, could one clearly say that the CBN has created a cashless environment in a cash-minded Nigeria?
Has the CBN encouraged more electronic-based transactions for payments of goods, services and funds transfer in Nigeria?
Rarzack Olaegbe works with eMaginations, with baise for electronic payments, based in Lagos
E-Financial
CITN Tasks New Tax Professionals to Shape Fiscal Policies for Efficient Tax System

Mr. Samuel Agbeluyi, the President of the Chartered Institute of Taxation of Nigeria, has charged incoming tax professionals to see their roles as critical to shaping Nigeria’s fiscal policies and building a more efficient tax system.
Agbeluyi gave the charge on Tuesday at the opening of the April 2025 Pre-Induction Orientation Programme held in Abuja.
While addressing participants, the CITN President said the orientation marked not just a personal achievement for inductees but the beginning of a greater national responsibility.
According to him, “Ultimately, it is expected that at the end of this programme and the induction thereafter, the number of tax professionals in the roll call of the CITN and indeed Nigeria would grow.
“Most importantly, more professionals would be added to the struggle of building an efficient and effective tax system in Nigeria, whilst influencing government fiscal policies and adding immense value to various stakeholders.”
Agbeluyi stated that the institute’s charter empowers it to determine the standard of knowledge and skills required to become a professional in the field, adding that the training was a deliberate step towards producing competent tax administrators capable of delivering value in the Nigerian economy.
He also noted that facilitators had been carefully selected from among experienced tax professionals and administrators to guide inductees using practical scenarios.
In her remarks, the Deputy Director of the CITN Tax Academy, Mrs Yetunde Suleiman, said the training was designed to expose participants to key developments in national and international tax administration, as well as emerging issues in the digital economy.
She noted that taxation remained central to Nigeria’s economic development and urged the inductees to take their training seriously in light of growing challenges in the country’s tax system, such as evasion, ambiguity of laws and high compliance costs.
Suleiman said, “There is a continuous need to produce, train and unleash qualified tax professionals to tackle these hydra-headed tax challenges.”
She urged participants to approach the sessions with enthusiasm, noting that the knowledge acquired would prepare them to become ambassadors of the institute and sound professionals equipped to drive reform in the tax space.
E-Financial
FCMB Capital Markets Leads ₦11.85bn GLNG Bond for LNG Plant Expansion

FCMB Capital Markets Ltd. successfully led the issuance of GLNG Funding SPV Plc’s ₦11.85 billion 10-Year Series 2 Senior Guaranteed Fixed Rate Infrastructure Bond, which closed in February. This milestone underscores investor confidence in Nigeria’s clean energy transition.
The bond, issued by GLNG Funding SPV Plc and sponsored by Green Liquified Natural Gas (GLNG) as part of its capital-raising plans, is a key step in financing the construction of a mini-LNG plant with a liquefaction capacity of 200,000 standard cubic meters of gas per day.
The facility will help bridge Nigeria’s power supply gap and offer industries a cleaner, cost-effective alternative to diesel.
The issuance was backed by InfraCredit, an AAA-rated infrastructure credit guarantee firm, and is expected to generate over 500 direct and 2,000 indirect jobs, supporting Nigeria’s sustainable economic growth.
“FCMB Capital Markets remains committed to financing projects that drive clean energy adoption and long-term economic impact,” said Ikechukwu Omeruah, Managing Director, FCMB Capital Markets Limited.
“We appreciate the trust placed in us by GLNG and the invaluable role played by InfraCredit and investors in enabling the successful conclusion of this transaction.”
As gas adoption accelerates in Nigeria, a 2022 Clarke Energy report estimates that manufacturers could save up to 30% by switching to gas from the grid and as much as 80% compared to diesel.
FCMB Capital Markets, a part of FCMB Group, has been instrumental in raising over ₦3 trillion in debt and equity capital for leading corporate organizations in Nigeria over the past five years, reinforcing its position as a key player in the country’s capital markets.
E-Financial
How Nigerian Banks Earned N14.26 Trillion in Interest Income in 2024

Nine leading Nigerian banks collectively generated N14.26 trillion in interest income in 2024, reflecting a 119.55% increase from N6.49 trillion in 2023.
This surge is attributed to the Central Bank of Nigeria’s Monetary Policy Committee raising benchmark interest rates to combat inflation, which reached 34.80% by the end of the year.
Among the banks, Zenith Bank recorded the highest actual income increase, while First Holdco led in percentage growth. Access Holdings, UBA, GTCO, Stanbic IBTC, FCMB Group, Fidelity Bank, and Wema Bank also reported significant gains.
However, a portion of this income was derived from non-performing loans, raising concerns about the sustainability of these earnings.
In contrast, the manufacturing sector faced operational costs of N2.5 trillion, with high interest and energy expenses straining growth. Industry leaders have called for a halt to further rate hikes, warning of potential risks to the real sector’s recovery.
This financial dynamic underscores the contrasting fortunes of Nigeria’s banking and manufacturing sectors. What are your thoughts on these developments?
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