Stakeholders canvass for safer cashless economy

For a smooth operation of businesses, stakeholders have advocated for a safer cashless economy in Africa, especially in Nigeria.

They stated that with a safer cashless economy, it would make businesses go smoothly and also reduce corruption.

The stakeholders said this at the third edition of the Africa cashless payment system conference held in Lagos with the theme “Building a Safer Cashless Economy and Business Communities.”

The conference organised by Foreign Investment Network (FIN) UK is aimed at integrating a cashless economy that would serve everyone.

Chairman FIN UK, Dr. Oluyinka Fayomi, said in her opening remarks that the potential of a cashless system to transform lives, especially for those previously excluded from financial services, is profound.

“Through collaboration and innovation, we can create a digital ecosystem that empowers individuals and businesses across Africa,” she said.

Fayomi noted that the cashless Lagos initiative has increased digital transactions and reduced cash handling costs significantly.

“Across Africa, mobile money has flourished, with 548 million registered accounts, proving the continent’s readiness for digital transformation. These achievements highlight the impact of the cashless system on economic growth and inclusion,” Fayomi said.

Vice Chairman, Nigerian Communication Commission (NCC), Dr. Aminu Maida, said the theme emphasises a key role shared to build an ecosystem where cashless transactions are not only efficient but secure and where the community of businesses is left behind as stakeholders keep pace with the global financial ecosystem.

Speaking on the role of telecommunications infrastructure in advancing cashless payment systems, the NCC boss said the commission plays an essential role in expanding digital payment systems with rich security and efficiency, enabling business communities to thrive in this financial landscape, adding that telecoms play a critical role in advancing mobile money in Nigeria.

“As the infrastructure and services provided by the telecoms companies form the backbone of mobile financial services, increasing internet penetration through telecom services allows for more advanced mobile money applications and online banking platforms.

“The NCC plays a critical role in advancing telecom infrastructure to support the digital financial ecosystem and aims to bridge the access gaps across the country, creating the enabling environment for the provision of ubiquitous connectivity, which aligns with our goal of building a safer and more secure cashless economy,” he said.

Maida, who was represented by the Commission’s zonal controller, Mr. Tunji Jimoh, noted that the National Broadband Plan 2020-2025 is a strategic framework that enhances internet access in urban and rural areas.

“Its goal is to provide download speeds of 25 megabits per second in the urban areas and 10 megabits per second in the rural areas, covering 90 per cent of the population and the penetration rate of 70 per cent. Also, the deployment of at least 120,000 kilometres of fibre infrastructure by 2025.

“This directly contributes to the broader cashless economy by ensuring reliable and high-speed internet is available across Nigeria. The USSD code allows users to access mobile money services without requiring internet access, which is especially important for rural areas. NCC allocates codes to financial institutions such as FinTech through license exemptions,” he stated.

This shift to cashless systems, Maida said, presents an incredible opportunity for businesses to grow.

His words: “By moving away from cash-based transactions, businesses can offer digital payment options that open doors to new customers and markets. Inclusivity is vital, and telecoms empower small businesses and informal markets, enabling them to grow, compete, and prosper within the global digital economy.”

He lamented that fraud, data breaches, and identity theft are real risks in the cashless ecosystem, and addressing these issues are critical to building trust.

Speaking on insurance coverage and risk mitigation strategies for cashless transactions, Head of Technical Controller, Nigeria Insurers Association (NIA), Soji Oni, who represented the Director General, Adebola Odukale, said cashless transactions have revolutionised the financial outlook of Nigeria.

“According to the Nigerian Interbank System, cashless transactions in Nigeria grew to $611 trillion in 2023 from $395.38 trillion as of the end of 2022, indicating 54.55 per cent year-on-year growth. So the security associated with this payment mode is an important factor.”

He explained that a cashless transaction is an online exchange between two individuals, business or an organisation where payments are made or accepted without the use of hard cash to carry out the transaction.