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Are there Really Cashless Economies?

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By Yvonne-Faith Elaigwu, Head of Operations and Governance, OnePipe

‘Cashless’ has probably become one of the most popular words in Nigeria in the last few months. While it can be defined in different ways, it has one universal meaning and is characterised by the exchange of funds for goods and services by methods other than the use of cash.

This little or no dependence on cash is not forced by an inability to queue for hours at an ATM or an unwillingness to pay an exorbitant fee to a PoS or mobile money agent. No, this little dependence on cash is because of the ability to meet financial obligations without necessarily needing to handle cash.

You are probably thinking about the western world and the level of development that makes this their reality but some very solid examples of cashless economies also exist in Africa.

One of the easiest ways to identify a Nigerian in Kenya for example (excluding the Naija-ness) is by how they transact. As a Nigerian visitor, you are very likely to pay in cash when you buy food, shop at a neighbourhood market, buy things from the roadside or visit a tourist centre. This alone – paying in cash everywhere – is more likely to scream “foreigner” than if you had worn a green-white-green Ankara at that time.

When the M-Pesa platform marked its 15 year anniversary last year, it had grown to more than 51 million customers, 465,000 businesses, 600,000 agents, and 42,000 developers across Kenya, Tanzania, Mozambique, the Democratic Republic of Congo, Lesotho, Ghana, and Egypt, as reported by Business Insider.

Ghana, our neighbours, digitised their economy with Mobile Money. The Bank of Ghana in its payment systems annual report for 2021, reported that its volume of Mobile Money transactions increased to 4.25 billion in 2021, representing a 47.1 percent growth, compared to 2020. Similarly, the total value of transactions increased to GH¢ 978.32 billion in 2021, from GH¢ 571.80 billion in 2020.

In dollar terms, the value of transactions in 2021 was $75 billion (based on current exchange rates). For perspective, Ghana’s GDP was $77.59 billion that same year. This essentially shows us mobile money transactions could cover the entire economic activities in Ghana (when currency devaluation over the past year is factored in).

The Carnegie endowment for international peace also referencing a BOG report, said in recent years, Ghana has been identified as one of the biggest mobile money markets and the fastest-growing one in Africa with 40.9 million accounts as at February 2021. Again, for context; the population of Ghana is 32.8 million. A Business Day report in 2019, noted that in Ghana, the utilisation of Mobile Money has become so ubiquitous, that it no longer has a wow effect, and is just a part of their everyday life. The average Ghanaian can go about his or her day and be productive without ever needing to transact with cash, just like their peers in Kenya and other countries where cash is increasingly less important.

Somalia’s journey to a cashless economy is perhaps the most inspiring. It is recorded that between 1990 and 2013, Somalia received no foreign direct investment, and the monetary system broke down with the collapse of the Somali Central Bank. The Somali government installed its first ATM in 2014, but the progress of its wider digital economy has been astonishing. The Somali Central Bank introduced a central payments system in August 2021 which connects the nation’s 13 lenders, and formalises digital payments, making payments easier for people across the country.

According to a report by the World Bank published in 2018, almost three-quarters of the Somali population aged 16 and older use Mobile Money. Somalia’s Gross Domestic Product, grew by an estimated 2.9 percent in 2019 and by 3.2 percent and 3.5 percent in 2020 and 2021 respectively. Eight years after the installation of their first ATM, Somalia is now recognized globally as a cashless economy.

Today, in its urban centres, Mobile Money penetration is over 80 percent. Even in rural areas, it has become the currency of choice, with a penetration rate of 55 percent.

Need we add examples of the western world? Maybe just a few.

In 2022, Merchant Machine ranked Norway on the list of 10 countries closest to a completely cashless society, with cash accounting for only 2 percent of all payments in Norway, 100 percent of its population owning a bank account, and 71 percent also owning a credit card.

It was followed by Finland with the same small percentage of cash-based payments ( 2 percent) and none of its citizens going without a bank account, then New Zealand also having two percent cash-based payments but a very slightly higher unbanked population of one percent.

The UK ranks lower at number eight due to a slightly smaller percentage of credit card users (65 percent) and higher percentage of unbanked population (3 percent). However, it sees less cash-based payments overall, with just 1 percent of all payments being made with notes and coins.

Now imagine a scenario where you navigate the city of Lagos without worrying about “change”, or whether the cash in your hand is not counterfeit or too worn out. Imagine not worrying about making any payments, not because you are a Dangote or because Otedola is your daddy, but because you have various payment options in your pocket or at your disposal; cards, phone, apps, USSD codes etc. More importantly, imagine that your transactions are happening within the banking ecosystem, your bank therefore has visibility into your spending patterns and is able to adequately profile you to access credit. Despite the promising future a cashless economy offers, the experiment in India has offered the rest of the world some lessons on how not to go about it. The Economic Times of India for instance, noted that after invalidating 86 percent of the currency in circulation (the 500 and 100 notes), the government started scrambling to promote digital payments, yet, only about half of Indian adults had bank accounts, and only about a quarter had internet access. Mobile payments were rare and even if everyone had wanted to go digital, they couldn’t have.

The lesson? Before going cashless, alternatives should not only be in place, but reliable too. India’s move towards going cashless has not been a complete failure but it came at huge human and economic loss.

An article on The Balance Money describes a cashless society as one where all transactions are electronic, using debit or credit cards or payment services like PayPal, Zelle, Venmo, and Apple Pay. In Nigeria, we have companies like OnePipe, offering technologies that digitise and simplify payment processing to downplay the dependence on cash.

Although not a lot of societies are truly cashless, many economists believe that consumer preferences, competitive pressures on businesses, profit seeking by banks, and government policies designed to facilitate cashless transactions will soon lead to more cashless societies which eventually lead to economic growth.


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Ugo Onwuaso is an ICT enthusiast. He believes technology should be used for general good. He holds a Master of Public Administration (MPA) degree from the Lagos state University. Dear Reader, Your support matters. But we believe that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. That is why, we have devoted our energy to independent reportage of technology and finance and how they affect lives. Our incisive and analytical view of how technology news affects the daily life help individuals and organizations make up their minds. Quality journalism costs money. Today, we're asking that you support us to do more. Kindly support our effort to deliver technology and finance journalism to everyone in the world. Donate as little as N1,000. Bank transfers can be made to: UBA Plc 1017156876 Communication Week Media Ltd

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NITDA, NBC Explore Strategic Collaboration on Digital Transformation, Media Regulation

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The Director General of the National Information Technology Development Agency (NITDA), Kashifu Inuwa CCIE, has reaffirmed the agency’s commitment to deepening inter-agency collaboration as he received the Director General of the National Broadcasting Commission (NBC), Mr Charles Ebuebu, on a courtesy visit aimed at exploring strategic partnerships in digital transformation and regulatory frameworks across Nigeria’s media and technology sectors.

Speaking during the meeting, Inuwa stated that digital transformation and regulation are inseparable in Nigeria’s rapidly evolving digital ecosystem. He also emphasised that digital transformation is not a one-off project but a continuous journey that requires constant improvement, periodic target-setting, and organisational adaptability to emerging realities.

According to the NITDA boss, the agency deliberately embarked on a transformational journey to reposition itself from a traditional civil service structure to a high-velocity, smart public sector organisation. He noted that when the agency began its transformation drive, a significant percentage of its workforce came from the mainstream civil service, bringing with it entrenched bureaucratic mindsets and rigid operational practices. This, he said, necessitated a conscious decision to change the narrative.

“More than 70 or 80% of our staff came from the mainstream public service, and we know the mindset of public servants, so we started changing that narrative by focusing on people, resetting mindsets, building capacity, and fostering a culture that supports innovation and accountability,” he noted.

Inuwa explained that NITDA’s approach to digital transformation was anchored on three core pillars: people, processes, and technology. He stressed that no matter how advanced technology may be, it cannot deliver value without the right people and efficient processes in place.

He further disclosed that the agency undertook a comprehensive cultural reorientation programme, supported by cultural audits and initiatives aimed at creating psychological safety within the organisation.

“This was critical to enabling staff at all levels to freely contribute ideas, challenge existing processes constructively, and engage in horizontal and vertical collaboration without fear of reprisal,” he stated.

He noted that culture remains the foundation upon which any successful strategy must stand, adding that “no matter how good a strategy is, without the right culture, execution will fail.”

Providing further insight into the transformation journey, he explained that NITDA adopted an integrated framework encompassing people, process, culture, content, and technology. Through this framework, the agency identified and addressed deeply rooted bureaucratic tendencies such as command-and-control structures, risk aversion, and excessive dependence on directives from senior leadership.

According to the DG, “these reforms paved the way for trust-based delegation, inter-departmental collaboration, and process optimisation”.

He further revealed that NITDA documented over 396 internal processes and subsequently streamlined them to eliminate inefficiencies and repetitive executive approvals. He cited examples where routine operational tasks that previously required multiple approvals at the Director General’s level were redesigned to empower departments as gatekeepers, allowing leadership to focus on strategic priorities.

This process optimisation, he said, also created the foundation for automation and the integration of digital tools.

On capacity building, the DG disclosed that all NITDA staff underwent mandatory artificial intelligence (AI) training, reinforcing the agency’s position that AI is a tool for enhancing productivity rather than replacing human capital.

He noted that staff across departments are now leveraging AI to improve workflows, generate ideas, and transition from manual administrative roles to AI-enabled system administration.

Inuwa added that technology deployment at NITDA is deliberately driven by business value rather than trend adoption, stressing that technology must support clearly defined processes and organisational objectives.

He announced that the agency has developed a comprehensive digital transformation playbook, capturing lessons learned from its journey, which it is willing to share with NBC and other government institutions.

To advance collaboration with NBC, Inuwa proposed concrete areas of partnership, including sharing the agency’s digital transformation playbook, delivering tailored training and capacity-building programmes, enrolling NBC staff in digital literacy initiatives developed with global technology partners such as Cisco, and providing technical support for modernising regulatory frameworks to align with the evolving digital and media ecosystem.

Earlier in this remark, Mr Ebuebu called for deeper collaboration between the NBC and NITDA, describing the partnership as long overdue in the face of rapid media and technology convergence.

He noted that although he has had several insightful interactions with the DG NITDA in the past, it was important to institutionalise cooperation between both agencies to address emerging developments in media, technology, data governance, and Nigeria’s digital future.

While calling for closer ties between the two agencies, he emphasised that a strategic partnership between NBC and NITDA is critical to effectively regulate the evolving media ecosystem, harness technology for content creation and distribution, promote the growth of local media, facilitate knowledge transfer, and protect Nigeria’s cultural and national interests.


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DG NCC Tasks University Dons on Research Commercialization, IP Management to Build Global Competitive Ecosystems

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Dr. John Asein, director-general, Nigerian Copyright Commission (NCC), has charged universities to leverage Intellectual Property (IP), innovation management and research commercialisation to build vibrant, sustainable and globally competitive ecosystems.

The DG stated this while delivering a paper on: ‘’Research Commercialisation, IP Policy and Innovation Management’’ at the Committee of Vice-Chancellors of Nigerian Universities (CVCNU) organised Business Clinic themed: Unlocking University-Driven Business Ecosystems: Innovation, Partnerships and Sustainable Enterprise Models in Abuja.

The programme was targeted at engaging Vice-Chancellors, principal officers and other key officers in Nigerian Universities in a practical dialogue on how to transit their institutions into thriving business ecosystems through innovation, enterprise development and strategic partnerships.

In his presentation, Dr. Asein, disclosed that Universities are now recognised as engines of national development and innovation hubs that must connect scholarship to business.

He noted that with over 300 Universities in Nigeria, there is need for structured pathways to turn ideas into commercial outcomes while attention should be focused on IP assets in our universities in order to harness them in a safe, sustainable and satisfactory manner.

The DG NCC speaking further on leveraging resources from the creativity locked up within the university system, harped on the need to harness the soft power of our youth as Nigeria’s most valuable natural resources are its people.

Drawing demography from Nigeria youthful population, he observed that over 70 percent of Nigerians who are under the age of 30 are mostly in the university system studying. These youths, he noted, shape cultures, technology and innovation through creativity and digital skills.

He tasked universities to become innovation factories where young people can explore ideas, protect their IP and grow startups by integrating innovation culture, entrepreneurship training and IP awareness into its learning environment.

He equally urged Universities to look beyond the sciences to commercialize traditional knowledge-based innovations and harness the potentials in the creative arts disciplines like music, visual arts, theatre arts and others for commercial outcomes.

Dr. Asein, recommended that universities as centres of learning, should take the lead in using the IP system for promoting education and learning, wealth creation, revenue generation and institutional development.

Underscoring the need for all universities to have an IP Policy, he noted that the Model developed by the Nigerian Copyright Commission in partnership with the CVCNU is a good starting point.

The Secretary-General, CVCNU, Prof. Andrew Haruna, presented the welcome address at the event while the Director, Technology Innovation and Commercialisation, NOTAP, Mrs. Adah H.N. Mokolo-Oladunke represented the Director-General, NOTAP at the event.

The 2025 CVCNU Business Clinic witnessed attendance from representatives of Public and Private Universities across the 36 States in Nigeria.

 


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US invests $115m in counter-drone tech for World Cup security

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US invests $115m in counter-drone tech for World Cup security

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The US Department of Homeland Security (DHS) will invest $115 million in counter-drone technology to safeguard the 2026 FIFA World Cup and events marking America’s 250th independence anniversary, creating a dedicated office for rapid drone system deployment.

Homeland Security Secretary Kristi Noem described drones as “the new frontier of American air superiority,” stressing the need to counter threats from drug cartels using unmanned aircraft for smuggling and surveillance, alongside incidents like a 2025 NFL stadium drone flight and 2024 New Jersey sightings.

The funding supports 11 World Cup host cities expecting over one million visitors, building on FEMA’s $250 million grants to those states and addressing risks heightened by cartels’ advancing tech, including a reported FBI tracking plot in Mexico.

DHS has conducted over 1,500 counter-drone missions since 2018, with the new Program Executive Office accelerating acquisitions amid President Trump’s border security push.


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