17 August 2012

Nigeria: Experts Highlight Risks, Benefits of Cash-Less Policy

The Executive Director, Business Development, Nigeria Inter-Bank Settlement System (NIBSS) Mrs. Christabel Onyejekwe, has said that the success of the current effort by the Central Bank of Nigeria (CBN) to transform the payment system largely depends on the availability and effectiveness of Point of Sales (PoS) terminals in the country.

Onyejekwe, who spoke at the August edition of the Digital Jewels Information Value Chain (IVC) monthly forum in Lagos, described the adoption and continued encouragement of the use of PoS terminals as a major step for the success of the cash-less policy.

"We have the conviction that the successful adoption of PoS terminals is dependent on the readiness of stakeholders to discharge their individual and dependent functions effectively and we strongly believe that the enhancement of PoS adoption relies on high its availability and connectivity," she stated.

she said the cash-less policy was an integral part of the shared services project of the Central Bank of Nigeria (CBN) to propel the growth of the economy.

She further stated that the shared services project includes industry cash management and logistics; payment system transformation via growth of electronic payments; IT Infrastructure Services; amongst others.

The Managing Director/Chief Executive Officer, Digital Jewels, Mrs. Adedoyin Odunfa, listed the benefits of the policy.

According to her, individuals benefits includes increased convenience, more service options, reduced risk of cash-related crimes, cheaper access to (out-of-branch) banking services and access to credit.

Odunfa, however, pointed out that traceability of transactions without security-enabled documentation coupled with increased velocity of money as factors could create avenues for fraud. She also noted that delays in electronic transfers - claimed to be instantaneous - many of which attract significant and varied charges can be to the detriment of the customer and pose reconciliation challenges to the financial institutions.

The Information Value Chain (IVC) Forum is a monthly gathering of ICT professionals. It provides a platform for knowledge sharing, information exchange and networking for executives as they climb the corporate ladder. This forum helps executives to keep abreast of pertinent trends on increasingly important issues which can affect their individual and corporate competitiveness.

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