7 April 2009
editorial
Lagos — Given the high level of fraud and corrupt practices perpetrated in government establishments, the idea of electronic payment is one whose time has long been over due.
With the advent of Information Technology taking over most operations like record keeping, data processing, financial transactions both in public and private sectors, the concept of cash payments, and paper money transactions are increasingly becoming outdated even in the Third World.
President Yar'Adua's decision that all payments and financial transactions in government be done electronically is therefore a good one. The order took effect from January 1.
The old order was characterized by leakages, delays, kick-backs, blackmail and all kinds of negative tendencies.
It is against that backdrop that we support the initiative of the e-payment scheme, which is expected to promote efficiency, eliminate bottlenecks, human errors, and more importantly reduce corruption.
By the new practice, payments to government workers, contractors and other government agencies will be done electronically. This way, the rampant cases of ghost workers through which governments are heavily defrauded, is supposed to have been eliminated. In the same way, tax payments, remittances by service providers, government agencies, parastatals are also supposed to be done electronically.
This, we expect, should plug leakages in government finances. But to achieve its full objectives, government must ensure that the new system is not abused. Even in the sophisticated IT world of the developed countries, fraudsters are known to have abused the system. Some of them are reportedly Nigerians.
Laudable as the idea is, there is a huge gap between the concept and the prevailing practice. The technological understanding required to drive the scheme does not appear to be in synch with the facilities on ground. Were it not so, the fate being suffered by federal government workers whose salaries have been delayed because of the e-payment scheme would not have been there.
Indeed, such delays would erode the confidence of the workers and the rest of the public in the scheme as the old order practice had provided them quicker access to their funds.
Another challenge the new scheme imposes on the operators is the liquidity of the banks. For, of what use is e-payment system, when the banks do not have the cash backing to support the scheme?
Indeed, the success or failure of the scheme will largely depend on the efficiency or otherwise of the banks. They must create units and departments that will specifically address the increased pressure from the e-payment system. Unless there is unfettered access to the service, it loses its essence and merit.
Another implication for the e-payment scheme is that it is largely a city/township friendly process. Agreed, a large chunk of government business is done within the cities and townships, but what happens to government workers in the rural communities where there is neither banking service nor electricity supply? What that requires therefore, is that government must commence the process of extending the scheme to non-city dwellers; and follow up same with enough enlightenment on the operational modalities of the scheme.
All said, while we support the new scheme because of its numerous advantages, we must caution that all necessary measures and support that will make it succeed must be put in place by government and other relevant bodies. It is only by doing so that the old order will no longer beckon with allurement.
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