Stakeholders advocate safer cashless economy for business growth in Africa

Stakeholders are calling for a more secure cashless economy across Africa, especially in Nigeria, highlighting that safer digital transactions could streamline business operations and reduce corruption.

This message was conveyed at the third Africa Cashless Payment System Conference in Lagos, themed “Building Safer Cashless Economy and Business Communities.”

The conference, organised by the Foreign Investment Network (FIN), focused on creating a digital financial system accessible to all.

In her opening remarks, Oluyinka Fayomi, Chairman of FIN UK, emphasised the transformative potential of a cashless system, especially for those previously excluded from financial services. “Through collaboration and innovation, we can create a digital ecosystem that empowers individuals and businesses across Africa,” she said.

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Fayomi added that Lagos’s cashless initiative has already boosted digital transactions and cut down on cash-handling costs significantly.

Across Africa, mobile money services are thriving, with 548 million registered accounts, highlighting the continent’s readiness for a digital transformation that drives economic growth and inclusion.

Aminu Maida, Vice Chairman of the Nigerian Communications Commission (NCC), highlighted the summit’s focus on building a secure and efficient digital ecosystem that empowers business communities to align with the global financial landscape.

Maida noted the essential role of telecommunications in expanding mobile money and enhancing the security and efficiency of cashless transactions, which is vital for business growth in Nigeria.

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“Telecoms infrastructure is the backbone of mobile financial services,” Maida explained, “and as internet penetration grows, we’re able to support more advanced mobile money applications and online banking platforms.”

He added that the NCC is dedicated to bridging connectivity gaps across Nigeria to support this shift to a cashless economy.

Maida, represented by Tunji Jimoh, the Commission’s Zonal Controller, also discussed the National Broadband Plan 2020-2025, which aims to provide download speeds of 25 Mbps in urban areas and 10 Mbps in rural areas, covering 90 percent of the population with a target of 70 percent internet penetration by 2025.

With 120,000 km of fibre infrastructure planned, these developments will strengthen the cashless economy by ensuring stable, high-speed internet across Nigeria.

He noted that the USSD code remains crucial in rural areas, as it enables mobile money access without the internet, with NCC assigning codes to financial institutions.

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Maida emphasised that this shift to a cashless economy offers major growth opportunities for businesses. “By embracing digital payments, businesses can reach new customers and markets. Telecoms are key in enabling small businesses and informal markets to thrive in the global digital economy.”

He cautioned, however, that risks like fraud, data breaches, and identity theft must be tackled to build trust in cashless systems.

Soji Oni, Head of Technical Control at the Nigeria Insurers Association (NIA), representing the Director-General, addressed the importance of insurance and risk management in cashless transactions.

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He shared that cashless transactions in Nigeria reached $611 trillion in 2023, up from $395.38 trillion in 2022, a 54.55 percent year-on-year increase. The security of these transactions is, therefore, a critical factor.

Oni described cashless transactions as the online exchange of funds between individuals, businesses, or organisations, without the need for physical cash, highlighting how they have revolutionised Nigeria’s financial landscape.