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
TCL Launches ‘vetandpay’ to Combat Online Transaction Fraud

Tradewyse Concepts Limited (TCL), Nigeria-based technology solution provider has launched a product called “vetandpay” to address the issues of trust and fraud in online business transactions in the country.

Dr Kalu Ibe, founder and chief executive officer, Tradewyse Concepts Limited
Dr Kalu Ibe, founder and chief executive officer, Tradewyse Concepts Limited, stated that the software was proudly developed by a team of Nigerians.
Speaking at the product dedication ceremony in Abuja, Ibe explained that the app aims to reduce corruption by restoring trust and integrity. He added that it would inspire confidence in both business and the broader transactional environment in Nigeria.
“Today, I present vetandpay.ng, powered by Vetandpay Technologies Ltd, Africa’s foremost escrow company, a subsidiary of TCL,” Ibe said.
“What started as a spark two years ago is now shining brightly over Nigeria’s transactional space, bringing healing with its rays.”
He outlined the various escrow services offered, including auto purchase escrow, procurement escrow, service-based escrow, e-commerce escrow, and property escrow, with more services expected to be added.
Ibe emphasised that the service is available to Nigerians both at home and abroad, promising zero losses in all business transactions when using vetandpay.
Through its Corporate Social Responsibility (CSR) programme, TCL plans to initiate a comprehensive tech training programme for teenagers in Nigerian schools. Ibe highlighted that the initiative aims to equip young people with technological skills, preparing them to enter the digital economy and drive innovation.
Ntufam Ugbo, project director, commented that vetandpay is transforming the business landscape in Nigeria by building trust between buyers and sellers.
“What vetandpay does is act as a middleman between the buyer and the seller,” she said.
Mrs Rachel Samuel, head of Customer Service at vetandpay, described the platform as a secure payment solution designed to eliminate fraud in online transactions.
“Our basic goal is to address the issue of receiving something different from what was ordered,” she explained.
Referring to a report by the Federal Trade Commission, Samuel pointed out that consumers lost over 8.8 billion dollars to fraud in 2022, a 30 per cent increase from the previous year. She noted that with vetandpay, both parties to a business transaction could have peace of mind and zero losses.
She encouraged Nigerians to embrace the services provided by the platform by downloading the vetandpay app and using the technology to secure their transactions.
‘‘Today marks the beginning of a new era in secure online transactions. Whether you are a business owner, freelancer, or everyday buyer, vetandpay is here to protect your hard-earned money,” Samuel concluded.
E-Financial
FG Asks World Bank for Fresh $10.50m Loan to Enhance CBN Technical Capacity

Nigeria has approached the World Bank for a fresh $10.50m loan to enhance the Central Bank of Nigeria’s (CBN) technical capacity and modernise the country’s domestic payment infrastructure.

Olayemi Cardoso, Governor, Central Bank of Nigeria
According to information on the World Bank website on Thursday, the proposed CBN Technical Assistance Facility seeks to support integrating innovative technologies and data science into the CBN’s supervisory processes.
This is expected to help the apex bank tackle long-standing and emerging challenges in Nigeria’s rapidly evolving financial landscape while improving the domestic payment infrastructure for remittances.
The project, currently at the concept review stage, will focus on three key areas. Firstly, it aims to strengthen the CBN’s institutional capacity to keep pace with technological advancements through a robust governance framework, expert advisory support, peer-to-peer central bank exchanges, and modernisation of the CBN’s internal processes to align with the digital era.
Secondly, it will enhance the CBN’s supervisory capacity through technology and data improvements. This involves funding modern technical solutions, including Supervisory Technology systems, to improve data accuracy, operational efficiency, and risk-based supervision.
Thirdly, it aims to modernise domestic payment systems for remittances to improve their safety and reliability.
It will explore innovative methods to attract informal remittance flows into formal channels while conducting annual surveys on remittance households and fostering peer-to-peer learning for knowledge exchange.
According to the World Bank, the objective of this project is “to strengthen technology-enabled, data-driven, risk-based supervision at the CBN and improve domestic payment infrastructure for remittances in Nigeria.”
The project aligns with the government’s pursuit of a cashless economy and the increasing adoption of digital financial services in Nigeria.
The scheme, which has a commitment amount of $10.50m, is scheduled for board presentation approval on June 12, 2025. The implementing agency is the Central Bank of Nigeria.
E-Financial
Sterling Bank Makes Online Transfer Charges Free of Charge

Sterling Bank has called for the cancellation of bank transfer fees by major banks, announcing it will no longer take any money for itself for any local online transactions by its customers.
The announcement, made on April 1st, initially sparked widespread arguments, with many assuming it was a marketing prank tied to April Fools’ Day.
However, Sterling Bank, in a statement, has confirmed that it is not a stunt, that the zero-transfer-fee policy was real, and effective immediately.
With this move, Sterling becomes the first major Nigerian bank to take a definitive stand against the long-standing practice of charging customers for everyday digital transfers, an issue that has grown increasingly contentious as digital banking adoption deepens.
“We believe access to your own money shouldn’t come with a penalty,” said Obinna Ukachukwu, growth executive leading the Consumer and Business Banking Directorate, Sterling Bank
“This is more than a financial decision, it’s a values-based one. It reflects our commitment to making banking fair, inclusive, and truly customer focused.
“We’re not yet the biggest bank in Nigeria, but we’ve been the boldest,” Ukachukwu added.
“Sterling fearlessly believes in the future of Nigeria, and this is us backing Nigerians with more than words,” it sated.
Under the new policy, Sterling customers will enjoy free transfers for all local transactions conducted via the bank’s mobile app. This translates into significant savings, particularly for individuals and new small business owners who make frequent daily transfers.
The bank’s latest move has been met with widespread public approval, sparking positive reactions across social media and placing pressure on industry peers to follow suit.
We’re proud to lead this change,” Ukachukwu added. “We hope it inspires others to think differently about what customers truly need from their banks, not just in services, but in values.”
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