Information technology is critical to the success of cashless policy in Nigeria – FintechNGR

By Ibiyemi Mathew

The Fintech Association of Nigeria, FintechNGR has stated that Information technology (IT) is pivotal to driving the success of the cashless policy in Nigeria.

At its Thought Leadership Series, the association while reacting to the new naira policy of the Central Bank of Nigeria (CBN) introduced to operate alongside the cashless policy stated that the cashless economy will be determined by the number of benefits provided to encourage mainstream adoption.

According to the association, “The drive for a cashless economy at all costs by the CBN is strategic, however, the execution and results have been described by many pundits as suicidal.The cash swap is being driven on steroids. This may be perceived to signal insensitivity and a lack of consideration of key stakeholders by the apex bank.”

“A cashless policy should bring about greater ease and convenience of payments, but is the opposite effect materializing in Nigeria today.”

“A key question needs to be asked: ‘can our current IT infrastructure handle the increase in transaction volumes if a significant chunk of the population moves towards digital payments?”

“If the answer is yes, then half of the anticipated problems are gone already. If the answer is no, then perhaps more efforts must be made to prepare a country with a large population like Nigeria to adopt a cashless policy,” it said.

“The rise of financial technology (FinTech) companies in Nigeria has revolutionised the way we perceive and consume financial services. Nigeria is now the third African country with the most progress in FinTech activity, following South Africa and Kenya.”

“Digitally-led banks and FinTechs with strong e-payment capabilities are leveraging the cashless strategy to drive further growth and focus on operational efficiency,” The association noted.