How to make cashless policy work in Nigeria

April 25, 2023

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 experienced to access cash for subsistence. It is now a household name in every nook and cranny that somehow leads to brawl in the nation. Many people who did not have acquaintance 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.

For a system to function there must first be structure. In every developed country around the globe, the system practices 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; sensitizing 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, lavish spending of cash at ceremonies, theft and it will engender equity and inclusion in access to cash for all Nigerians.