The recent enforcement of the cashless policy in Nigeria by the Central Bank of Nigeria ahead of the presidential election on February 25, 2023 can best be described as chaotic given the hardship that the citizens and businesses experience to access cash for subsistence. It is now a household name in every nook and cranny that somehow leads to brawl in the nation. It is now streanous and costly to take what belongs to you from the Bank. Many people who do not have acquittance with workers in the banking industry have to pay huge amount of money to have access to their money, leading to buying of cash from Point-of-Sale (POS terminal) personnel.
Every day, one struggles to make ends needs. It has become increasingly difficult to commute from one point to another. Visitation for business or pleasure has become an exception rather than the norm. Thus, we practice stay-at-home, purchase money with money, and pay double for every transaction. E-banking platforms such as Opay, Kuda, MoneyPoint, Palm Pay, and Fair Money begin to take over the banking system. ‘POS people’ are cashing out. The axiom ‘if POS person or petrol attendant is not your guy, omo you are missing’ becomes the quote on every lady’s lips. Yahoo guys lost it to POS guys and petrol attendants.
For a system to function, there must first be structure. In every developed country around the globe, the system practises structuralism and functionalism. For cashless policy to thrive in Nigeria, there must first be a functional structure before it can become effective. Since the basic need of man in order of priority is food after clothing, it is therefore important for structure to be put in place and this entails but is not limited to:
• availability or provision of POS machines at affordable price for every trader (both retailer in the rural area and wholesaler in the urban area) by the government in collaboration with the banking systems,
• sensitising traders on how to use the machine,
• encouraging traders to utilize the workability and durability of the machine for transactions,
• persuading commercial drivers to use the POS machine for logistics/transportation payment,
• sensitising and encouraging Nigerians to use their ATM cards for daily transactions,
• approving online banking, and
• reducing charges deduction on transactions by banking system.
If all these are designed and developed, the implementation of a functional cashless policy will not be difficult to achieve. The use of cashless policy is a good idea to eradicate hoarding of cash, lavishly spending of cash at ceremonies, theft and it will engender equity and inclusion in access to cash for all Nigerians.
- Sarah Oyetola is a masters student in the University of Ibadan.
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