Lack of Infrastructure stalls CBN cashless policy

Efforts by the Central Bank of Nigeria for a cashless society will suffer challenges as a result of a lack of adequate infrastructure and awareness in some parts of the country.

The policy which has since taken off in Lagos and is about to kick off in five other states and federal capital territory has been relatively successful, however, there are fears that the lack of infrastructure in the rural area will militate against the policy thriving in other states of the federation.

This is the observation of stakeholders in the financial sector at the second annual Nigerian Transiting to a Cashless Society conference organized by DeNovo and Reach Legal.

“Over 40 percent of rural Nigeria lack mobile coverage at present and the cashless policy can not be deployed in these areas as a result of no telecommunications infrastructure,” said Tope Fashedemi, director e-government, Federal Ministry of Communications Technology representing Omobola Johnson, Minister of Communications Technology at the event.

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However while this is a major challenge the ministry of communications technology is embarking on new projects such as encouraging new technologies, and increasing the spectrum scope of communication services by encouraging new technologies.

The ministry is also planning to release new spectrums that will allow for a wider reach at a cheaper cost of rolling out these services, Fashedemi explained.

Musa Jimoh, deputy director, banking and payment system department, Central Bank of Nigeria noted that the challenges -such as lack of infrastructure and awareness- faced by the CBN has made the governing bank foster a close working relationship with the National Communication Commission (NCC) to ensure there is adequate coverage of the locations the CBN will deploy the cashless policy to.

“In terms of awareness we are basically working with the banks to provide adequate information and consumer education to sensitize people so that the Nigerian populace can understand the benefits of this policy,” Jimoh said.

He urged the public to see the policy by the governing bank as an initiative to reduce the circulation of cash within the country and not as an antagonistic move.