Connect with us

Business

Can CBN Achieve Its Cashless Policy?

Published

on

It is no longer news that the Central Bank of Nigeria (CBN) is seriously gearing to commence the implementation of a nationwide cashless policy by June1, 2012.

Of major concern, however, are media reports that the ongoing pilot tests of the policy in Abuja and Lagos have continued to reveal fresh inadequacies almost on an every-other-day basis without a matching speed at remediation.

Much as Nigerians may appear to admire the ease with which modern technology is being used to facilitate non-cash payment for goods and services in the developed world, there is enormous doubt as to whether situations on the ground down here can accommodate a wholesale importation of such complex but seemingly simple payment culture.

If there are countries that need a cashless policy, it is surely the likes of Nigeria, Zimbabwe and the Francophone nations which would usually require a huge stack of their bank notes to exchange for a unit of American, British or Eurozone currency.

Whereas an American belle can conveniently walk through New York’s Wall Street with $3,000 (in $100 bills) tucked inside her handbag, her Nigerian counterpart can hardly carry an equivalent sum (N465,000 in N1,000 notes) on Broad Street in central Lagos without seeing the Area Boy in any man that smiles at her.

The CBN intends that its cashless policy would serve to encourage the use of such alternative payment channels as automated teller machines (ATMs), point of sales (PoS) terminals, mobile banking, Internet banking and electronic funds transfer alongside the long existing use of cheques and bank drafts.

Even before the kick-off of its trial runs, the apex bank had already placed ceilings on personal and institutional daily cash withdrawals at the banks.

Its initial approval of N150,000 and N1 million daily cash withdrawal limits for individuals and corporate bodies later got an upward review to N500,000 and N5 million, respectively.

This simply means that any over-the-counter (OTC) cash withdrawals exceeding these sums would attract a 10 per cent default charge and may also run the risk of raising undue security alert.

Among the benefits being touted as derivable from the CBN policy include: tracking of crimes such as armed robbery, kidnapping and money laundering; reduced risk of carrying bulk cash; saving man-hours spent queuing at the bank; easier accounts auditing; faster service at reduced cost; 24-hour service; immediate notification of transaction on user’s account; electronic buying and selling in line with modern global practice; ready access to data for economic planning and research; and elimination of problems associated with issuing change after payment.

For Nigeria, the planned introduction of a cashless policy may be ill-timed. This is partly because the country is yet to place a firm grip on its pitiable electricity supply situation. And considering that nearly all the payment channels are built on gadgets that depend on stable power sources, it becomes disturbing how the CBN hopes to achieve its new policy without first ensuring that the nation, particularly the urban centres, enjoys a modest electricity supply.

Furthermore, Nigeria suffers from high rates of illiteracy and rural underdevelopment. Even to this day, there are communities in this country where barter is still the chief means of exchange for goods and services. The absence of banks and inadequate money supply means that such communities have continued to suffer exclusion from the nation’s financial system.

This exclusion of the rural population was made even worse by the recent upsurge in armed robbery attacks, kidnapping, resource- control militancy and its associated brigandage which led to the closure of many rural bank branches, especially in southern parts of the country.

Apart from these, there is also this growing doubt in the ability of the CBN to successfully manage the cashless process.

It would be recalled that the financial systems regulator had on a number of occasions failed to push through some of its own regulatory measures. For example, in spite of its massive campaigns aimed at discouraging the abuse of naira notes (particularly at the eateries, parties and other ceremonial grounds), Nigerians have carried on as if the campaigners were a bunch of killjoys.

Even more poignant was the relentless rejection by Nigerians of the CBN’s recent attempts to reintroduce the use of coins alongside the nation’s currency notes. Instead, reports were rife that local jewellers preferred to melt such coins and have them molded into ornaments and other objects of greater face value.

Added to this is the discovery that deposit money banks (DMBs) have continued to flout the apex bank’s directive that they stop the practice of wholesale banking and concentrate on their traditional commercial banking services.

The CBN’s cashless policy is reportedly being pursued as part of measures aimed at accomplishing a stable financial system pursuant to its FSS 20:2020 vision which in itself dovetails into the wider national Vision 20:2020 project. If this is true, then the remaining eight years would still have been ample for a step-by-step approach to the introduction of the alternative payment channels than the simultaneous roll-out method being adopted.

Already, the ATMs which, at the time of their deployment a few years ago, held some promises of a success story are now confronted by long queues and a plethora of complaints. Out of the three machines that may be found at any urban bank branch, only one can be said to be functional at any given time. As for the other two, they would almost certainly be ‘temporarily out of service!’

Having apparently failed to maximize the benefits accruable from using the already existing ATMs, there is nothing to suggest that the nation stands to pull off much from the planned introduction of new multifunctional machines and the licensing of Independent ATM Deployers (IADs) into a system that would soon get saturated with diverse electronic payment channels and their vendors.

Another make-or-break factor in the implementation process is the readiness of the telecommunication network providers to improve the quality of their services. Already, Nigerians are being heavily fleeced for making mostly voice calls and using short message services (SMS). One can, therefore, imagine what awaits the nation when m-banking and the other network-dependent services are forced on the citizens.

A number of these telecoms firms are already partnering with the banks in attempts to outsmart their competitions at e-payment solutions development. What’s more, their banker partners are now in the market with very tantalizing newspaper advertisements some of which even tend to suggest that such solutions possess fail-safe characteristics. But try as they possibly can, it will only be a matter of time before mischievous bank staff, retail agents, poor network and Internet hackers rip the entire system to shreds.

Going further, the Economic and Financial Crimes Commission (EFCC) and indeed all the law enforcement apparatus should brace up against the impending upsurge in cases of identity theft, issuance of dud cheques and other related misconducts.

Cashless policy may be the vogue, but certainly not for a clime with so much illiteracy, poor infrastructure and a terrible maintenance culture. Talking of Nigeria, that is.

 

Ibelema Jumbo

Continue Reading

Business

NPA Assures On Staff Welfare 

Published

on

The Managing Director, Nigerian Ports Authority (NPA), Dr. Abubakar Dantsoho, has said the management will continue to accompany its port infrastructure  and equipment  modernization drive  with the development of the welfare of its personnel.
Dantsoho made the disclosure recently while responding to the commendation by the Maritime Workers Union (MWUN) and the senior Staff Association of Statutory Corporations and Government-Owned Companies (SSASGOC) on the  clearing  of the age-long problem of employee stagnation, when the union paid him a courtesy visit at the Authority’s headquarters in Lagos.
A Statement by NPA’s General Manager Corporate & Strategic Communications, Mr. Ikechukwu Onyemekara, quoted Dantsoho as saying,  “our Port infrastructure and equipment modernization drive will go hand-in-hand with continuous staff welfare improvement”.
The NPA MD disclosed that human capital development constitutes the key strategy for creating and sustaining superior performance under his watch, adding that “talent development constitutes a critical success factor for the actualization of the big hairy audacious goals we have set for ourselves especially in the area of Port competitiveness.
“The only way we can meet and indeed exceed stakeholders’ expectations is to deepen the competencies of our human resources assets and boosting their morale.”
Speaking further, Dantsoho commended the Honourable Minister of Marine & Blue Economy, Adegboyega Oyetola, for approving the strategic proposal of the Dantsoho-led Management team that solved the over a decade-long problem of lack of promotion that had fuelled industrial disharmony.
“I must specially appreciate our amiable Minister for graciously approving the multi-pronged stratagem we deployed that cleared all outstanding cases of employee stagnation by conducting examinations in one fell swoop and instituted timelines to forestall a recurrence of such anomaly”, he sad.
Speaking on behalf of the joint maritime labour unions, the President  of Senior Staff Association of Statutory Corporations & Government-Owned Companies (SSASCGOC), Comrade Bodunde stated, “In addition to clearance of the backlog of stagnated promotions, we also wish to express our appreciation for the increase in productivity bonuses, provision of end-of-year welfare packages for staff, and the revision of the Financial Guide to the Condition of Service, which now addresses our members’ concerns about inflationary pressures.”
Nkpemenyie Mcdominic, Lagos
Continue Reading

Business

ANLCA Chieftain Emerges FELCBA’s VP

Published

on

National Secretary of the Association of Nigerian Licensed Customs Agents (ANLCA), Elder Olumide Fakanlu, has been elected Vice President of the Federation of ECOWAS Licensed Customs Brokers Association (FELCBA).
The election took place during the FELCBA Congress, held from Tuesday, June 17th to Thursday, June 19th, 2025, in Freetown, Sierra Leone.
Fakanlu’s emergence as Vice President marks a significant achievement for Nigeria within the regional customs brokerage community.
Apart from Fakanlu, Secretary of the Seme Chapter of ANLCA, Austin Nwosu, was also elected, securing the role of Secretary of Relations with Institutions.
The Nigerian delegation played an active role in the congress, with Michael Ebeatu nominated as a member of the electoral officer team, ensuring a fair and transparent election process.
The three-day congress concluded with delegates undertaking a visit to the Sierra Leone Port, offering insights into the host nation’s maritime operations, followed by a recreational trip to the Tokeh Beach.
The newly elected executives are expected to lead FELCBA in its efforts to harmonize customs brokerage practices, promote trade facilitation, and advocate for the interests of licensed customs brokers across the ECOWAS sub-region.
Nkpemenyie Mcdominic, Lagos
Continue Reading

Business

NSC, Police Boost Partnership On Port Enforcement 

Published

on

In a bid to enhance more enforcement in the nation’s Port, the Nigerian Shippers’ Council (NSC) has reaffirmed its commitment to stronger inter-agency collaboration with the Nigeria Police Force (NPF).
The Council said the collaboration is aimed at enhancing stronger enforcement, compliance and improve operational efficiency across Nigeria’s ports.
Executive Secretary/Chief Executive Officer of  NSC, Dr. Pius Akutah, made this known during a visit to the  Inspector-General of Police, Dr. Kayode Adeolu Egbetokun, at the Force Headquarters, Abuja.
The visit, which he said, focused on strengthening institutional synergy, comes in the wake of growing responsibilities for the NSC under the newly created Ministry of Marine and Blue Economy.
Akutah emphasized the critical role of security agencies in supporting port operations and ensuring regulatory compliance.
He called for the posting of police officers to assist the Council’s monitoring and enforcement teams at key port locations including Lagos, Warri, Onne, Port Harcourt, and Calabar.
“The posting will complement the activities of our revived task teams and enhance our ability to enforce standards across the maritime logistics chain”, he said.
Earlier, the Inspector-General of Police, Dr. Egbetokun, assured the Council of the Force’s readiness to continue supporting the growth of the maritime sector.
The IGP acknowledged that compliance enforcement is essential to the successful implementation of Nigeria’s Blue Economy objectives.
“The NSC and NPF are expected to deepen collaboration in the months ahead, with a shared focus on building a secure, efficient, and competitive port environment”, to the IGP emphasized.
Chinedu Wosu
Continue Reading

Trending