Why nigeria must reverse its cashless

Cashless Lagos and its many challenges On A banker with Zenith told our correspondent that all PoS terminals will have minimum of two sims and 24 hour back up batteries in case of erratic power supply. In July, our bank adopted critical measures to encourage its customers to embrace electronic channels.

Why nigeria must reverse its cashless

They are trying to push you into using their digital payments and digital banking infrastructure. Just like Google wants everyone to access and navigate the broader internet via its privately controlled search portal, so financial institutions want everyone to access and navigate the broader economy through their systems.

Hundreds of cash machines close as UK turns to contactless payments Read more Another aim is to cut costs in order to boost profits.

Replacing them with standardised self-service apps allows the senior managers of financial institutions to directly control and monitor interactions with customers. Banks, of course, tell us a different story about why they do this. I am one of the customers they are referring to, but I never asked them to shut down the branches.

There is a feedback loop going on here. In closing down their branches, or withdrawing their cash machines, they make it harder for me to use those services. If a powerful institution wants to make people choose a certain thing, the best strategy is to make it difficult to choose the alternative.

Why nigeria must reverse its cashless

We can illustrate this with the example of self-checkout tills at supermarkets. The underlying agenda is to replace checkout staff with self-service machines to cut costs.

But supermarkets have to convince their customers. The true motive is corporate profit. The nudge requires two parts. First, they must increase the inconvenience of cash, ATMs and branches.

Second, they must vigorously promote the alternative.

Why nigeria must reverse its cashless

His concept of hegemony referred to the way in which powerful parties condition the cultural and economic environment in such a way that their interests begin to be perceived as natural and inevitable by the general public. That belief does not come from nowhere.

The basic idea is that you can get people to internalise beliefs by addressing them as if they already had those beliefs. The objective is to reverse-engineer a belief within me that it is inconvenient, and that cashlessness is in my interests.

But a cashless society is not in your interest. Cash, on the other hand, does not crash. It does not rely on external data centres, and is not subject to remote control or remote monitoring. This is also the reason why financial institutions and financial technology companies want to get rid of it.

Cash transactions are outside the net that such institutions cast to harvest fees and data. A cashless society brings dangers. People without bank accounts will find themselves further marginalised, disenfranchised from the cash infrastructure that previously supported them.

There are also poorly understood psychological implications about cash encouraging self-control while paying by card or a mobile phone can encourage spending.

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And a cashless society has major surveillance implications. Despite this, we see an alignment between government and financial institutions. The Treasury recently held a public consultation on cash and digital payments in the new economy.Sanusi now rolled out another revolutionary policy to make Nigeria a cashless society.

In its circular titled “Industry Policy on Retail Cash Collection and Lodgment”, the CBN directs that, “commencing from June 1, , a daily cumulative limit of N , and N1, , on free cash withdrawals and lodgments by individuals and corporate customers respectively with Deposits Money Banks (DMBs) .

The Central Bank of Nigeria circulated a memo in February of last year () calling for the implementation of cashless policies. Nigeria penalizes certain amounts of cash withdrawals, which encourages people to make cashless transactions.

That policy will help modernize Nigeria’s payment system, says GSMA. Nigeria Digital News Nigeria Economy News Nigeria Food News Nigeria Health News.

Why is cashless inclusion so difficult? via Endtime Ministries | End of the Age To see the potential and dignity in every person is a gift we must receive and then cultivate. Cashless Lagos initiative of the CBN is on course notwithstanding the challenges. Banks have commenced the enforcement of cashless policy of the Central Bank of Nigeria .

Dec 13,  · Why cashless? But what explains this urgent drive towards a cashless society? One way to answer this is to consider the likely outcomes of a cashless society, and read back from it the intent Author: G.

Sampath.

The Cash-Less Policy in Nigeria: Issues, Challenges And Prospects, by Okoli Hyginus Nnaemeka