Experts Thump Up CBN’s Cashless Policy

The cash-less policy of the Central Bank of Nigeria (CBN) designed to reduce cash-based transactions is working despite the teething problems according to some experts who spoke to Nigeria CommunicationsWeek at the weekend.

 
They were of the consensus that the policy transform the payment system largely which is still largely cash driven.

 
James Agada, managing director, ExpertEdge, a major Automated Teller Machine (ATM) deployer, said that the cashless policy of the Central Bank of Nigeria has achieved massive penetration of Point of Sale terminal in the country.

 

The CBN had last year begun the implementation of cashless regime with Lagos as test state.

 

The regime stipulates a ‘cash handling charge’ on daily cash withdrawals or cash deposits that exceed N500, 000 for Individuals and N3,000,000 for Corporate bodies.

 

Agada said that the policy has impacted positively on the citizens as they are gradually imbibing the culture of carrying card instead of cash.

 

According to him the policy would help in the measurement of economic activities as transactions will be captured.

 

Nodding in agreement, Valentine Obi, managing director, eTranzact limited, said the policy has created awareness that one can do a lot without carrying cash. “The policy provides convenience, security as well as measurement of economic parameter,” he stated.

 

He identifies communications infrastructure challenge as a major hiccup in the implementation of the policy, while urging that every good policy do have hiccups but with time such hiccups are taken care of.


 
Ugo Okoroafor, head, corporate Communications, CBN, expressed satisfaction with the implementation of the policy, adding that the apex bank has gathered report on the implementation of the policy in Lagos and is studying the report before extending the policy to other parts of the country.

 

Okoroafor,  said that the volume of transactions through the various e-payment channels is increasing which is the resultant impact of cashless policy.



He explained that the policy has to a large extent reduced currency management which is the highest operational cost incurred by banks.

 

 “The more people go cashless the more significant cash saving they get,” he said.