General News
Cashless Society: Is Nigeria Winning
By Adeniyi Ogunfowoke
Technology is forcing both developed and emerging economies to innovate. The cashless society is one such innovation.
Cashless society according to Wikipedia describes an economic state whereby financial transactions are not conducted with money in the form of physical banknotes or coins, but rather through the transfer of digital information (usually an electronic representation of money) between the transacting parties.
The Beginning of the Cashless Society Drive
In Nigeria, the cashless society drive began in 2012. In order to limit the liquidity in circulation, the Central Bank of Nigeria (CBN) says that cash-based transactions should not exceed N500,000 for Individuals and N3,000,000 for Corporate bodies. The CBN added: “Our economy uses too much cash for transactions for goods and services, especially for buying and selling. This is not how it is done in other progressive countries of the world where there are other payment options such as, Debit and Credit Cards, Bank Transfers, Bank Direct Debits, Automated Teller Machines ( ATMs), and even Mobile Money. These achievements have been brought about by the changing needs of their people, competition among banks, and other companies, including changes in technology. Our major focus is to increase the volume of all available payments instruments in Nigeria.”
The Phase 1 of the scheme took off in Lagos on January 1, 2012, while additional states, namely Abia, Anambra, Kano, Ogun and Rivers States, as well as Abuja, were involved in Phase 2, which commenced on October 1, 2013. Phase 3 which is the final phase of the policy’s implementation commenced in the remaining 30 states of the federation on July 1st.
In other words, the cashless society has been managed and implemented for six years now. Six years down the line, is the Central Bank of Nigeria winning the cashless society war?
Is Nigeria Winning the Cashless Society War?
Despite the fact that Nigerians struggle to accept change, a good number of them, especially in the urban and semi-urban areas have wholeheartedly embraced the cashless society scheme. This is probably because they have no choice. You can say that the country is winning the cashless society war in urban areas.
Currently, you will find an average Nigerian or a market woman with an ATM card. To offer this more credence, data from an e-payment channel report in a series from the NBS, produced in collaboration with the CBN, reveal that 457 million transactions valued at N32trn were recorded on the channels in Q1 2018 and the NBS data also show that 54 million PoS transactions were recorded in Q1 2018, representing increases of 13% q/q and 101% y/y.
Furthermore, with a smartphone, you can use either Unstructured Supplementary Service Data (USSD) or mobile app to perform banking transactions at any time of the day. Again, the NBS report reveals that mobile payments recorded 15 million transactions valued at N329bn (US$1.07bn) in Q1. The value of the transactions grew by just 21% y/y and accounted for only 3.3% of total electronic transactions.
Off the cashless society policy, a notable achievement is the rise of digital payment gateways. Some of them include Jumia Pay, and others.
Owned by Jumia, Nigeria’s No.1 shopping destination, Jumia Pay enables Nigerians to make secure online payments while shopping on Jumia platforms. The payment gateway uses state-of-the-art technology and procedures to protect your online transactions. Interestingly, you get guaranteed 5% cashback for using Jumia Pay.
By the same token and in line with the cashless society policy, millions of customers who shop on Jumia, or book hotel and flights, or order food from their favourite restaurants now enjoy the services of Jumia Pay. This is because they can now pay for their transactions using Jumia Pay.
In addition to this, customers will enjoy 5% off all their orders on Jumia. If you combine this with the amazing Black Friday discounts Jumia is offering, customers will definitely save a lot of money whenever they shop on the ecommerce platform. The key reason for doing this is to encourage Nigerians to settle transactions through the use of digital payments rather than via cash.
Unequivocally, the painstaking efforts of the CBN in implementing the cashless policy are truly paying off. However, there is quite a lot to that still needs to be done. Many in the rural areas are yet to be reached.
They largely still use cash that is not even kept in the bank. This means there are still millions of unbanked Nigerians out there. The cashless society campaign needs to be taken to their doorsteps. Importantly, the cashless society message should be available in local languages. Ultimately, the CBN has to take a look again at the fees banks charge customers. Understandably, banks need to cover their costs and expenses but it should not be at the expense of their customers.
Sweden is the most cashless society on the planet, with barely 1% of the value of all payments made using coins or notes last year. Nigeria is nowhere near Sweden. But we are on the march towards a cashless society. The country only needs to integrate more inhabitants of rural areas into the scheme, effectively regulate banks and fintechs and continue to push the cashless society campaign.
Independent Corrupt Practices and Other Related Offences Commission (ICPC) indicted the National Information Technology Development Agency (NITDA) and other ministries over administrative lapses that allowed the fictitious Presidential Foreign Investment Promotion Council (PFIPC) to operate.
Musa Aliyu, chairman, ICPC, stated that NITDA, alongside the Office of the Secretary to the Government of the Federation (OSGF), the Budget Office, and other bodies, failed to carry out adequate due diligence and standard operating procedures.
ICPC said however, clarified that the findings pointed to severe internal control weaknesses and administrative negligence rather than active official complicity by NITDA and the other affected agencies.
The briefing followed a 30-day investigation ordered by the president on July 7 into allegations surrounding the purported presidential council.
The commission also cleared the presidency and the Central Bank of Nigeria (CBN) of any wrongdoing but blamed institutional lapses in several ministries, departments and agencies (MDAs).
Aliyu said investigators established that Adeniyi Adeyemi, the director-general, was never appointed by the federal government and that the PFIPC had no legal existence.
“As you may recall, on the 7th of July, Mr. President directed the ICPC to conduct an investigation into the fake Presidential Foreign Investment Promotion Council and submit a report within 30 days,” he said.
“Today, exactly within the stipulated period, we have submitted an interim report based on our interactions with all stakeholders involved.”
According to Aliyu, Tinubu directed the commission to make its findings public in the interest of transparency and accountability.
He said the investigation found that Adeyemi’s purported appointment letter was forged.
“It has been established that Adeniyi Adeyemi Matthew was never appointed by the Federal Government or any authority whatsoever,” he said.
“The Presidential Foreign Investment Promotion Council, which sometimes they called the Presidential Foreign Intervention Promotion Council, was never established by any law, executive order or any valid instrument of government.
“The appointment letter presented by Adeniyi Adeyemi Matthew was completely forged alongside similar documents used to perpetuate the illegal activities of the fake agency.”
Aliyu stated that a purported government gazette used to legitimise the organisation was also fabricated.
“If you recall, there was a gazette which he used to support the fake agency. That gazette is an illegal document that never passed through the processes prescribed by law,” he stated.
“Our investigation found that the office used by the fake agency was the office of the Presidential Economic Advisory Council. The office was broken into and access was gained illegally. That was how he was able to operate from there.”
Aliyu also revealed that investigators uncovered two additional fictitious government agencies allegedly created by the suspect — the FCT Investment Promotion Agency (FIPA) and the Foreign Investment Promotion Agency/Public-Private Partnership (FIPA-PPP).
According to him, fake legislative instruments were used to create the agencies and open bank accounts.
Despite the elaborate scheme, the ICPC chairman said the investigation found no evidence that federal government funds were disbursed to the fake council.
“Our investigation found that no funds of the federal government were approved or disbursed to the fake PFIPC,” he said.
“We also discovered no weaknesses in the systems of the State House or the Central Bank of Nigeria during our investigation. The fake appointment letter did not originate from the presidency.
“Our investigation found that some public officers failed to carry out due diligence and failed to comply with standard operating procedures in their ministries and departments. That gave him the opportunity to carry out these illegal acts.”
Nigeria tax system is build on taxing prosperity not poverty, according to Dr. Zacch Adedeji, executive chairman, Nigeria Revenue Service (NRS).
Dr. Zacch Adedeji, executive chairman, Nigeria Revenue Service
Adedeji, also dismissed the insinuation that the government’s tax reform is aimed at extracting money from Nigerians .
He said the essence of reform is creating an economic environment where individuals and businesses can prosper.
Dr. Adedeji made the clarifications on Sunday night while appearing on Channels Television’s Politics Today, where he defended the administration’s tax reforms and addressed concerns over rising government revenue amid the economic hardship facing Nigerians.
According to him, the government’s objective is to tax the fruits of investment rather than the investment itself.
“For us at Nigeria Tax, we are not there to extract. Our focus is not revenue. I don’t want to tax poverty. I’m to tax the fruit, not the seed, and I’m to tax the return, not investment.”
Adedeji explained that the government would generate more revenue as businesses became more profitable, without necessarily increasing the tax burden on individuals and companies.
He said a company that made N100 in profit could generate N30 in tax revenue for the government, but if its profit increased to N200 or N300, government revenue would rise accordingly.
“So, if I want to make more, I must work for you to make more. And that is why it is in the best interest of us in Nigeria Revenue Service that businesses are doing well, individuals are doing well,” he said.
He said the approach was consistent with President Bola Tinubu’s economic agenda, which seeks to remove barriers to investment and create a more conducive environment for businesses to operate and expand.
Adedeji cited reforms in the electricity sector as part of the government’s efforts to stimulate economic activity.
He noted that the Electricity Act had devolved powers to state governments to generate, transmit and distribute electricity, arguing that improved power supply would boost production and productivity across the economy.
Prof Chidi Oguamanam, Nigerian scholar, has been invited to serve as a member of the United Nations Educational, Scientific and Cultural Organization (UNESCO’s) World Commission on the Ethics of Scientific Knowledge and Technology.
Prof Chidi Oguamanam,
The appointment, which covers four years from 2026 to 2029, recognises Oguamanam’s contributions to the ethics of science and technology and related disciplines.
The invitation was conveyed in a letter from UNESCO on Saturday, which described the commission as an independent advisory body and forum for reflection on major ethical challenges arising from advances in science and technology.
The letter stated, “Recognising your significant contributions to the ethics of science and technology and related disciplines, it is my honour to invite you to become a member of UNESCO’s World Commission on the Ethics of Scientific Knowledge and Technology for a period of four years, from 2026 to 2029.”
Established in 1998, the commission brings together experts from different regions and disciplines to examine ethical issues associated with scientific and technological developments, climate change and the environment.
UNESCO said regional balance was important to the commission’s membership to promote multidisciplinary and transdisciplinary debate on emerging ethical challenges.
According to the organisation, the commission provides guidance and recommendations through its reports to UNESCO, its member states, the scientific community, policymakers, civil society and other stakeholders.
Its previous work has contributed to global normative instruments, including the Declaration of Ethical Principles in Relation to Climate Change adopted in 2017 and the Recommendation on the Ethics of Artificial Intelligence adopted in 2021.
UNESCO noted that the commission had recently published reports examining the ethics of quantum computing and space exploration and utilisation.
The organisation said the commission would now focus on new areas identified for its future work programme, including emerging ethical challenges arising from scientific and technological developments.
In inviting Oguamanam to join the commission, UNESCO expressed confidence in his expertise and active contribution to the development of its forthcoming reports.
The organisation also said it expected members to contribute to “horizon scanning” of emerging ethical challenges and help identify issues that should be addressed in the commission’s next cycle.
Oguamanam’s appointment adds to Nigeria’s representation in international discussions on the ethical implications of science, technology and innovation.
He is expected to serve on the commission alongside experts from different regions and academic disciplines during the 2026–2029 term.
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