Nigeria has been implementing a cashless policy in a bid to move towards a more digital and efficient economy. The policy has been met with mixed reactions, with some states even taking it to court. However, despite the challenges, the cashless policy has been making significant strides in Nigeria.
The use of mobile money has been on the rise, particularly in light of the lingering cash crises in Nigeria. In January 2023, mobile banking surged by 125% to N2.37 trillion. Meanwhile, cashless transactions in Nigeria have surged 45.41% to N39.58 trillion. This demonstrates that more and more Nigerians are embracing digital transactions and moving away from traditional cash-based transactions.
One major challenge with the cashless policy is the lack of financial inclusion for many Nigerians, particularly those in rural areas. However, there have been efforts to increase financial literacy and inclusion, particularly through the use of mobile money. The rise of mobile money has enabled Nigerians to make transactions without the need for a physical bank account, which is particularly beneficial for those who live in areas with limited access to traditional banking services.
There have been concerns about the security of digital transactions, particularly in light of the rising cases of cybercrime. However, the Central Bank of Nigeria has been taking measures to ensure the safety and security of digital transactions. One such measure is the implementation of a risk-based cybersecurity framework that aims to mitigate risks associated with digital transactions.
The cashless policy has the potential to transform the Nigerian economy and bring about increased efficiency and transparency in financial transactions. While there are challenges to overcome, particularly in terms of financial inclusion, the rise of mobile money and digital transactions is a positive sign for the future of Nigeria’s economy.