Cashless economy: Economist tasks govts on provision of adequate electricity, telecommunications infrastructures

An economist, Dr Chiwuike Uba, has urged Federal and State Governments to invest in the provision of stable electricity and telecommunication infrastructure for Nigerians to maximize the gains of cashless economy.

“Without the provision of these infrastructures, Nigerians and indeed the country will find it hard to reap enormous benefits from the cashless economy as observed in developed countries,” Uba, Board Chairman of Amaka Chiwuike-Uba Foundation (ACUF), said.

He said this in Enugu on Sunday on the sidelines of the Central Bank of Nigeria (CBN) redesign of the Naira, limit cash withdrawal and encourage electronic/cashless payment systems.

Uba, who is the Lead Researcher of Afri-Heriatge, an economic-political research and analytic institution, said that the infrastructures necessary to effectively implement the policy, “are not currently in place in an adequate manner.”

The economist noted that in most cases, it takes months for banks to solve and reverse failed transactions due to very poor banking network and inter-bank connectivity issues.

According to him, the redesign of the Naira and cash withdrawal limits are, without any doubt, good policies geared towards the migration of transactions from physical money to electronic money.

He noted that the short transitional period for the redesigning of the currency, while not the best strategy, could help prevent asset bubbles by slowing the flow of black money into the sector.