Business Cashless Policy: 83% of retail transaction still cash-based

Barely eighteen months after the introduction of the cashless policy, eighty-three (83) per cent of retail transactions across the country still financed by physical cash.

Meanwhile, the Central Bank of Nigeria (CBN) has continued its enlightenment campaign on the policy with an interactive session with stakeholders in Awka, Anambra State.

Mr. Bismarck Rewane, Managing Director/Chief Executive, Financial Derivatives Company, in his monthly economic news and views lamented the continued dominance of cash-based transactions. “Card-based transactions remained relatively unchanged at 17 per cent. Approximately 83 per cent of transactions are cash-based. Network challenges continue to hinder wide adoption of cashless policy. Network challenges need to be addressed to further improve card-based transactions.”

On his part, Deputy Governor, Operations, CBN, Mr. Tunde Lemo said the objective of the cashless initiative was to modernize the financial system to enable Nigeria realize her goal of becoming one of the largest economies in the world by the year 2020.

Represented by the Deputy Team Manager, Share Services Unit, Mr. Babatunde Ajiboye stated that the essence of the cashless policy was to reduce the cost of cash management and achieve a more efficient payment system in Nigeria. According to him, in support of the extant Money laundering Act, the CBN being the custodian of the Nigerian payment system, decided to lead the crusade to migrate from the present cash-based to cashless transactions.
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