The Cashless Payment System as a Panacea to the National Security Challenges in Nigeria (original) (raw)

Electronic Payment in Cashless Economy of Nigeria: Problems and Prospect

2016

Before the emergence of modern banking system, banking operation was manually done which lead to a slowdown in settlement of transactions. This manual system involves posting transactions from one ledger to another with human hands. This work examines electronic payment in cashless economy of Nigeria: Problems and Prospect. The new policy by Central Bank of Nigeria (CBN) on cashless system of payment has raised a lot of concern to the growth of Nigerian economy, with the objective of reducing robbery, high cost of processing cash, revenue leakages, inefficient treasury management, promoting economic development through financial intermediation, among others. The aim of this paper is to ascertain the extent to which electronic payment affect cashless economy of Nigeria. Descriptive research design was used to carry out this study. The study indicates that the electronic system of payment has a great implication in cashless economy of Nigerian but it will led to significant decrease i...

Cashless banking in Nigeria and its implications

2012

Electronic money has ushered in the cashless banking framework across different countries of the world and this is made possible by the advances in information technology and invention that began in Japan and later the West. However this new introduction into the various economies of the world is not without reaction both favorable and unfavorable. This paper seeks to point out the implications, in a developing economy like Nigeria, of a cashless banking which still permits some cash in the economy that is home to both the formal and informal sector. Theoretical findings supports the view of some economists concerning the need for regulatory agencies to be very wary the possibly retarding effect of the introduction of such a sophisticated payment system, particularly in developing economies like Nigeria, with the coexistence of the formal and informal sectors, that may not be able to muster the wherewithal to bear the burden of electronic payments and hence the cashless banking para...

CASHLESS SOCIETY: DRIVE'S AND CHALLENGES IN NIGERIA

The purpose of this paper is to examine how we can achieve a cashless society in Nigeria especially given her infrastructure deficits. This study examines the cashless economic system so as to assess its feasibility in Nigeria with regards to timeless, preparedness and adequacy against the backdrop of our level of development both technologically and educationally. Nigeria has continued to evolve in different realms. The economy is being reformed, the institutions are being reshaped and laws are being reexamined so as to reposition the nation to take its rightful position in the international community. As a way of fast-tracking the Nigerian economy so as to be among the first 20 world economies come 2020, Nigeria proposed 2012 for the adoption of the cashless economy system starting with Lagos State but could not realized its objective. The study used structured questionnaire as a means of data collection and the collected data were analyzed using simple percentage procedure. The results indicate that: majority of Nigerians are already aware of the policy and majority agree that the policy will help fight against corruption/money laundering and reduce the risk of carrying cash and can also foster economic growth. Major problems envisaged that can hinder the implementation of the policy are: cyber fraud, limited point of sales and numeracy illiteracy. Based on the findings some recommendations made are: the government should adopt a different strategy to educate the non-literate Nigerians about the cashless economy; and the Federal Government of Nigerian should establish a Cybercrime law.

Analysis of Infrastructural Challenges, Cybercrime, and the Cashless Policy in Nigeria

ARIS2 - Advanced Research on Information Systems Security

This study makes an analysis of infrastructural challenges and the cashless policy in Kaduna state, Nigeria. A survey was conducted to collect the primary data through a structured questionnaire and interviews with bank customers, bank officials, and security personnel to obtain information on infrastructural challenges since the introduction of the Cashless policy by the Central Bank of Nigeria in 2012. Frequency distribution and simple percentage methods are used to analyze the data. Findings show that infrastructural challenges include network failure and infrastructural deficiency, debiting by Automated Teller Machine (ATM) without disbursing cash to beneficiaries, problems not rectified quickly by the banks, and charging by banks for using electronic banking methods. This leads to fraud, cybercrimes, and reduced confidence in the banking system. It is recommended that banks should be made to provide the minimum infrastructure required for cashless policy to succeed. In additio...

ELECTRONIC BANKING AND CASHLESS POLICY IN NIGERIA

The cashless policy has been introduced in Nigeria, however, there are still excess of cash in the economy despite the cutting edge measures put in place by the Nigerian inter-bank settlement system (NIBSS) aimed at removing and/or reducing to the barest minimum all glitches associated with cashless and e-transactions payment channels. As a result of this, the objective of the study is to determine the impact electronic-banking tools have on cashless policy in Nigeria for a ten year period which spans from 2006 to 2015. In this research work, the ordinary least square method was used to analyze the data. The data used for this research work was collected from the Central Bank of Nigeria (CBN) annual report and the Nigerian Interbank Settlement System (NIBSS) website. The major findings of this research work showed that there is no significant impact of electronic banking tools on the currency in circulation. The study recommends that transaction charges should be further reviewed to a little (single digit) or no charge, to encourage more patronage of e-payment platforms and CBN, Deposit money banks (DMBs), and other non-banks financial institutions should provide public enlightenment and awareness programs that will create awareness and entice the unbanked individuals into the banking system especially those in the informal sector in Nigeria.

Cashless Economy in Nigeria - Issues, Challenges and Prospects

Cashless Economy in Nigeria - Issues, Challenges and Prospects, 2012

Recently in Nigeria, issues on the CBN cashless policy have constituted the themes and subject matters of many workshops, conferences and symposia. They have also made headlines on pages of the national dailies and periodicals and have become subjects of discussions in learned circles. 1 The considerations range from the constitutionality of the policy to its economic advantage/disadvantage and criticisms. 2 The robust interest which the policy has generated is hardly surprising considering the enormous implications its applicability will have on the lives of ordinary Nigerians and the business environment. 3 A cashless economy is an environment in which money is spent without being physically carried from one person to the other. The first issue in the cashless economy is the issue of electronic purse. This is electronic information that is transmitted to a device which reveals the information about how much a person has stored in the bank and how much he can spend. An attempt is made in this paper to critically appraise the pros and cons of the cashless economy policy within the context of socioeconomic realities in Nigeria, with a view to determining its workability as intended by the apex bank. The paper also contains some considered recommendations for reforms.

The Cashless Policy in Nigeria: Prospects and Challenges

In Nigeria as it is in many developing countries, cash is the main mode of payment. This makes the country to be heavily cash-based economy. However, the cost of cash to Nigeria financial system is high and increasing. It is in this regard that the Central Bank of Nigeria (CBN) introduced the cashless policy with the objective of promoting the use of electronic payment channels instead of cash. This study seeks to point out the prospects and challenges of such policy, in a developing economy like Nigeria. The study presented useful recommendations for policy makers. In conclusion, the study posits that the move towards a cashless Nigeria brings with it numerous benefits but there is still the need to create more awareness to entice the numerous unbanked Nigerians into the banking system.

Were We Ready in the First Place?": An Analysis of Cashless Policy Implementation in Nigeria

2016

On 1 January, 2012, Nigeria commenced the implementation of cashless policy, with the kick-off in Lagos State. By the end of that year it was evident the implementation could not be extended to other states of the federation, as earlier scheduled. This raised a crucial question: was Nigeria prepared in the first place, in terms of availability of needed infrastructures, to commence implementation of the cashless economy? This study seeks to answer this question. In addition, it identifies potential consequences of implementation on the security of the nation’s cyberspace. Both primary and secondary data were collected. Our findings reveal that when the implementation of the cashless policy kicked-off, awareness, required infrastructures, and the security of the country’s cyberspace were inadequate. We suggest that the consequences of implementing cashless policy in Nigeria will have various security effects on the Nigerian cyberspace if the level of awareness and existing infrastruc...