‘Cashless economy success depends on security, adequate infrastructure’

Executive Director of UAC Nigeria Plc, Dr. Joe Dada, said speed, security, trust and adequate infrastructure are necessary conditions for achieving a successful cashless economy.

He, however, pointed out that the high cost of infrastructure acquisition, installation and maintenance could pose serious challenges to achieving a vibrant cashless economy.

Dada stated this in his book titled, ‘Cashless Policy: Evolution and Execution in Nigeria’, which was presented in Lagos, yesterday.

The book provides insights into cashless evolution, its effectiveness in Nigeria and the challenges faced in the past few months on the heels of the naira redesign.

Speaking to journalists during the presentation, Dada said small and medium enterprises (SMEs) suffered greatly during the recent cash crunch.

Adding that the cashless policy was a wake-up call to fintechs, he urged them to go through the proper channels to be licensed.

Dada charged the incoming administration to work on monetary, fiscal, and trade policies to bring foreign investors into the country. He suggested that the right people should be appointed into critical offices.

The book came at a time when many countries around the world are moving towards a cashless society, and policymakers are grappling with the challenges and opportunities of the transition.

It explores the pros and cons of the cashless transition and its potential role in shaping the economy.

“Monitoring and evaluation of policy implementation procedures seem to not incorporate feedback from the public, while Sweden has gone ahead to use the cashless system to trail money laundering, its implementation of the system was gradual with the incorporation of ticket purchase using credit cards or payment through mobile phones,” the synopsis says.
President, Guild of Public Affairs Analyst of Nigeria (GPAAN), Ayo Baje, during the presentation, said the book states the historical perspective, the rationale behind it, challenges within Nigeria’s chequered economic journey, the leading role of Sweden, the globally acclaimed leading country which has succeeded in reducing cash transactions to 3% of payments volume.

In his review, the book traced back to the global economic and financial crises that surfaced in the last quarter of 2008, left its debilitating effects on developing economies, including Nigeria, commended the Sanusi Lamido Sanusi led CBN on the radical transformation and modernization of the payments system which includes the compelling need to reduce transaction costs across the financial services industry, to improve the industry’s productivity and efficiency

As well stated in the Foreword by Former Deputy Governor, CBN, Dr. Tunde Lemo, reviewed by Baje, the book, is a vivid description of the country’s journey to a cashless economy in Nigeria, which commenced in 2012 under the Sanusi/ Lemo era “is certainly relevant to the public at large”. The reason is obvious. And that is because, “all of us, irrespective of our background and fields, interact with the financial sector through the only ubiquitous language: money”

Overall, the book serves as a valuable resource for policymakers, academics, and practitioners seeking to understand the complexities and potential benefits of cashless policies in Nigeria and other developing countries.