Nigerian Cash-Less Policy Prospects and Challenges

Abstract

This paper examines the viability of an operational cashless policy in the Nigerian economy and the importance of a cash-based to cash-less transition that has been pursued by the Central Bank of Nigeria over the last few years. The cash-less policy, initially piloted in Lagos, and accentuated by e-banking schemes, is examined in this paper in the context of a country malaised with pressing developmental challenges including illiteracy, low standards of living, poverty and insecurity and a still developing financial and banking system. The study takes a descriptive look at the benefits to be derived from such an initiative, as well as the various challenges that have to be surmounted in order to fully harness these positive outcomes, which would aid towards the attainment of the country’s developmental goals. Additionally, particular focus is given to the issue of security, and thus a section has been dedicated to explicating on the importance of electronic identity and the recently introduced Bank Verification Number system.

Keywords: e-banking, CBN, Nigerian economy, cash-less, BVN, development