Empirical analysis of people awareness, attitudes and implications of cashless society policy in nigeria

Journal of Computer Application and E-Business (ISSN: 2321 – 2812)

Volume 08 – Issue 06, December 2014

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Empirical Analysis of People Awareness, Attitudes and

Implications of Cashless Society Policy in Nigeria

Haastrup V. Adeleye (PhD)., Olukumoro S. Olugbenga., Yekini N. Asafe

Department of Computer Technology

Yaba College of Technology, Lagos Nigeria

Corresponding author e-mail: [email protected]

Abstract:

As a way of fast-tracking the Nigerian economy so as to be among the first 20 world economies come 2020, Nigeria

has commenced the cashless economic since 2013. This study was carried out to access the Nigerian awareness,

attitudes and implications of cashless society policy in Nigeria. We used structured questionnaire as well as interviews

as a means of data collection and a sample size of 250 was selected. The collected data were analyzed using tables and

simple percentage procedure. The results indicate that: majority of Nigerians are already aware of the policy and

also agree that the policy will help fight against corruption, money laundering and reduce the risk of carrying cash. It

however showed a strong dislike for the policy among Nigerians irrespective of the efforts of Central Bank of Nigeria

towards the adoption of electronic payment system. Major problems envisaged to be capable of hampering the

implementation of the policy are: cyber fraud and illiteracy. Based on the findings, recommendations were suggested.

Keywords: Cashless, world economic, Central Bank of Nigeria, electronic payment system, cyber fraud.

I. INTRODUCTION

It is obvious that the world we live in today is

in a stage rightly termed digital age or more

commonly, information age where computer and

the World Wide Web have revolutionized

everything, from banking, manufacturing to sales.

This trend can be seen in the number of countries

that have embraced the cashless society policy

especially during the last two decades. Hence,

Nigeria realizing that she cannot afford to be left

behind in this trend has for long set in motion

frantic efforts through its financial organ, the

Central Bank of Nigeria (CBN) towards the

entrenchment of cashless economy in the country

[1]. As it is today, there have been remarkable

advancements in Information Technology (IT) that

the predictions are now more feasible than when

they were made. Along this direction, the Central

Bank of Nigeria (CBN) has in recent times engaged

in a series of reformations aimed at both making

the Nigerian financial system formidable for the

enhancement of the overall economic performance

of Nigeria so as to place it on the right path in tune

with global trends.

The ongoing effort by the CBN to introduce

cashless policies in the country has not fared

differently either. Ever since the central bank of

Nigeria made public its intention to implement

cashless economic policy in the country, there have

been on-going debates in different quarters as to

the suitability, preparedness of the country for such

policy and its possible implications for the nation.

For example, some analysts argue that since a large

percentage of the nation‘s population even in urban

areas is unbanked, coupled with the problem of

poor infrastructure and erratic power supply that

the policy might spell doom for the nation [2].

There is also the issue of low level of awareness as

regards the policy despite the sensitization efforts

by the CBN which cannot be said to have fully

achieved the desired results in view of the issues

raised above. From the foregoing problems, this

study shall be an evaluation of the cashless society

policy proposed by the Central Bank of Nigeria and

shall delve into what a cashless society is all about

and how its implementation would affect Nigeria‘s

economy and Nigerians in general. Grey areas of

cashless policies such as security, privacy and

fraud shall be highlighted, an assessment of

Nigeria‘s preparedness for the implementation of

the cashless economy shall be made and

recommendations shall finally be made to the

relevant authorities. It is anticipated that this report

will help in bridging the gap between the current

perceptions about the cashless policies and the

actual operations of the system [3].

A. Statement of the Problem

In Nigeria today, there has been an incredible

progress in the knowledge of information

technology (IT) and Internet operations to the

extent that many Nigerians are quiet familiar with

the subject of cashless transactions. As such, the

gradual transition of the country towards a cashless

society has received mixed reactions among

Nigerians some who have experienced or heard of

one internet scam or the other. Some analysts and



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pundits cite reasons ranging from poor

infrastructure, unsteady power supply, low level of

literacy to the issues of privacy and security as

reasons for their pessimism. The recent decision of

the Central bank of Nigeria (CBN) to have the

country‘s currency redenominated with an

introduction of 5,000 naira note has casts further

doubts as to its sincerity of purpose in the face of a

growing opposition to its proposed cashless policy,

though that has now been suspended by the

government. These issues and more show that the

CBN still has much work to do especially in its

sensitization efforts if it hopes to realize its dream

of a cashless Nigeria [4].

B. Aims and Objectives

The goals of this research are to give an

overview of the proposed cashless society policy,

asses the feelings and state of preparedness of

Nigerians for its nationwide kickoff. The benefits

derivable from the policy by all stakeholders shall

be outlined. An objective appraisal of the

arguments for and against the policy shall also be

made with a view to correcting any wrong

perception about the policy. The challenges to be

surmounted by the regulatory body in order to

realize a successful implementation of the policy

shall as well be laid bare.

Finally, this research shall attempt to answer the

questions:

i. Is Nigeria really prepared to embrace the

cashless society policy or there is a need to

wait till a later time?

ii. In the event that Nigeria successfully

plunges into a cashless society, can

electronic means of payment provide a

viable alternative to the use of physical cash

or serve as its outright replacement in the

near future? It is the goal of this report to

explore these and more in an objective

manner.

II. LITERATURE

A. An Overview of a Cashless economy

A cashless economy has been simply

illustrated by [5] as a gradual or a radical

movement of the entire payment system of an

economy from the use of physical cash to a

systemic adoption of other non physical cash mode

of payments in settlements of all types of

transactions, including all commercial, homes,

personal, local and international trade both in

public and private life within the economy.

In other words, he sees a cashless economy to be at

its functional best when all means of payments are

carried out without the use of physical cash; but

payments being effected through the use of

optional instruments and devices such as cheques,

debit and credit cards, online banking transaction,

wired transfers, point of sale electronic payments

through the use of special cards and devices

installed in commercial centres and public business

places, mobile banking modes and other electronic

banking devices through the internet and joint co-

operatively managed companies by banking

establishments, a few of which are already known

and many others yet unknown in the Nigerian

banking landscape.

The Central Bank of Nigeria (CBN) announced a

new cash policy (Cashless Society), which began

on 1st of January 2012 in Lagos state. Some

Nigerian populace are of the opinion that Cashless

Society will proffer solution to high risk of cash

related crimes such as illegal immigration,

financing Terrorism, illegal drug Trade, Human

Trafficking, corruption etc. It will enhance

effectiveness of monetary policy in managing

inflation in Nigeria, thereby improving economic

growth and development [6].

But contrary to what is suggestive of the term, [7]

is of the view that a cashless economy does not

refer to an outright absence of cash transactions in

the economic setting but one in which the amount

of cash-based transactions are kept to the barest

minimum and that it is one in which transactions

are not done predominantly in exchange for actual

cash. It is not also an economic system where

goods and services are exchanged for goods and

service (the barter system). It is an economic

setting in which goods and services are bought and

paid for through electronic media. Woodford M.

(2003) defined a cashless economy as ―one in

which it is assumed that there are no transaction

frictions that can be reduced through the use of

money balances, and that accordingly provide a

reason for holding such balances even when they

earn rate of return‖.

[8], is of the opinion that in a cashless economy,

the amount of cash in someone‘s wallet is

practically irrelevant, since payment for purchases

could be made by any one of a plethora of credit

cards or bank transfers. Some aspects of the

functioning of the cashless economy are enhanced

by e-finance, e-money, e-brokering and e-

exchanges which all refer to how transactions and

payments are effected in a cashless economy. In

Nigeria, under the cashless economy concept, the

goal is to discourage cash transactions as much as

possible. It should be said that as at now there are

already some forms of cashless transactions that are

taking place in Nigeria. R. (2008) noted that:

Today there are up to seven different electronic



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payment channels in Nigeria, Automated Teller

Machines (ATM), points of sales terminals (POS),

mobile voice, web, inter-bank branch and kiosks

and that E-payment initiatives in Nigeria have been

undertaken by indigenous firms which have been

stimulated by improvement in technology and

infrastructure.

As noted above, cashless economy does not imply

an outright end to the circulation of cash (or

money) in the economy but refers to the operation

of a banking system that keeps cash transactions to

the barest minimum. The system according to [9]

is targeted at encouraging electronic means of

making payments, and not aimed at discouraging

cash holdings.

B. Available Payment Options in the proposed

Cashless Economy

i. Card Payments through Automated

Teller Machine (ATM): under the card

payments we have the following payment

platforms; Mostly located outside of

banks, it can also be found at airports,

shopping malls, and places far away from

the home bank offices, and offering

several retail banking services to

customers. ATM is a combined computer

terminal, with cash vault and record-

keeping system in one unit, permitting

customers to enter the bank‘s book

keeping system with a plastic card

containing a Personal Identification

Number (PIN). It can also be accessed by

punching a special code number into the

computer terminal linked to the bank‘s

computerized records [10].

Electronic Purses/Wallets

There are two categories of e/wallet, these

are;

a. E-wallets that store card numbers and

cash. It operates like having a virtual

savings account where charges are made

for ongoing purchases, particularly

micropayments. This category of a digital

wallet is where consumers store digital

cash, which has been transferred from a

credit card, debit card or virtual cheque

inside their e-wallets.

b. E-wallets that store card numbers. This is

a virtual wallet that can store credit card

and debit card information. Other

information that can be stored on this card

is passwords, membership cards, and

health information. Some of the e-wallets

make it easier for consumers to buy goods

using the card.

Electronic Funds Transfer at Point of Sale

(EFT/POS)

EFT/POS is an online system that involves the

use of plastic cards in terminal on merchants‘

premises and enables customers to transfer funds

instantaneously from their bank accounts to

merchant accounts when making purchases. It uses

a debit card to activate an EFT process, [11]. It

actually comprises two distinct mechanisms: debit

and credit cards.

Credit Cards

This is a plastic card that assures a seller that

the person using it has a satisfactory credit rating

and that the issuer will see to it that the seller

receives payment for the goods or items delivered.

This represents the automated capture of data about

purchases against a revolving credit account, [12].

Debit Cards

These were a new form of value-transfer,

where the card holder after keying of a PIN, uses a

terminal and network to authorize the transfer of

value from their account to that of a merchant.

Introduced more recently, debit together with credit

cards represent the most rapidly growing method of

payments in several OECD countries. (Pierce,

2001) When a payment is made through a debit

card, the funds are immediately withdrawn from

the purchaser's bank account. The advantage is that

the buyer has the funds to make the purchase and

paid for right away, so there's no credit card shock

when the statement arrives in the mail [13].

Smart Cards

A smart card is a plastic card with a computer

chip inserted into it and that store and transacts data

between users. The data, in a form of value or

information is stored in the card‘s chip, either a

memory or microprocessor. ―Smart card enhanced

systems are in use today throughout several key

applications, including healthcare, banking,

entertainment and transportation.‖ One of the

features of this card is that it improves the security

and convenience of transactions. The system works

in virtually any type of network and provides

security for the exchange of data.

ii. Mobile payment platform

According to [14], ―a mobile payment is an

electronic payment made through a mobile device

(e.g., a cell phone or a PDA).‖ This uses a mobile

device to initiate and confirm electronic payment.

In the field of payments, mobile phones



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opportunity is seen in the embedded SIM (smart)

card used to store information of users.

The advantage of not needing to use other

devices such as modems, point of sale terminals,

and card readers for mobile payments is also quite

clear, [15].

Figure 1. Basic diagrams of alternative payment

channels

iii. Telephone Banking

Under this mechanism, the customer

transacts business by dialing a touchtone telephone

connected to an automated system of the bank.

Telephone banking or telebanking is a form of

virtual banking that deliver financial services

through telecommunication devices. This is

normally done through Automated Voice Response

(AVR) technology‖ [16]. Telebanking has

numerous benefits for end users. For the customers,

it provides increased convenience, expanded access

and significant time saving. Instead of going to the

bank or visiting an ATM, retail banking serves the

same purpose for customers to get the services at

their offices or homes.

iv. Home Banking This term is used for a variety of related

methods whereby a payer uses an electronic device

in the home or workplace to initiate payment to a

payee. In addition to computer technology, it can

be performed using the telephone and IVR2. [17].

―PC- Banking is a service which allows the bank‘s

customers to access information about their

accounts via a proprietary network, usually with

the help of proprietary software installed on their

personal computer‖. It is used to perform a variety

of retail banking tasks, and offers the customer 24-

hours services. ―PC-banking has the advantage of

reducing cost, increasing speed and improved

flexibility of business transactions.‖ [18].



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v. Online/Internet Payments

Customers can access their bank accounts

and make transfers through a website provided by

the bank and complying with some rigorous

security checks. This is the means by which

customers transact business with a bank through

the use of the Internet network. Internet Banking

can be described as ―the provision of traditional

(banking) services over the internet‖. The Internet

is able to offer instantaneous settlement of

transactions and the prospect of a highly cost

effective payment system for low value

transactions. The Internet has the potential to reach

majority of customers since it can disseminate

"advertising material" through World Wide Web

home pages and product databases [19].

vi. Electronic Cheque

Electronic cheques are used in the same

way as paper cheque – the clearing between payer

and payee is based on existing and well known

banking settlement system. The only difference

between paper and electronic cheques are the

dematerialization of the payment instrument which

is passed on via computer networks like Internet in

the later technology. E-Check proposed by

Financial Services Technology Consortium (FSTC)

is an example of the electronic cheque [20].

Electronic cheques also known as e-cheques are

virtual cheques that allow consumers to use

Internet in making cheque payments. The buyer

fills out a form (that looks like a cheque on the

screen) with the necessary information, and then

clicks the "send" button. The information then goes

through a computer or a transaction service,

depending on which way one chooses to accept

check payments.

C. Implications of the Cashless Policy The implementation of the policy would result

in an irrevocable consequence of loss of profit to

the banking sector, since according to him, the

Nigerian business environment particularly the

high value commercial traders, never trust the

epileptic operations of the Nigeria banking system,

hence a large proportion of such customer would

prefer to move their funds out of the banking

system where they can have more control on their

funds without withdrawal or deposit penalties,

which in turn would reduce funds available to

banks. A sizeable number of traders and merchants

who have not yet perfected the practice of running

their businesses through e-banking would opt to

find alternative methods of preserving their cash

resources; which would mean more funds moving

out of banks to the informal financial cycle both in

the interim and in the long term. According to him,

all the above would translate into reduced resources

for banks to do their business and ultimately a loss

of income and profit. Hence, he concluded that the

inefficiency of the Nigerian financial system, its

lack of respect for regulatory policies coupled with

the uncompromising dictatorial approach to

regulatory policies and policy implementations by

the leadership of the Central Bank of Nigeria are

the potential obstacles to the cashless project [21].

D. Benefits of the Cashless Policy From the Central Bank‘s point of view, the

following benefits are expected to be derived by

various stakeholders from an increased utilization

of e-payment systems [22]:

i. For Consumers: Increased convenience,

more service options, reduced risk of cash

related crimes, cheaper access to (out of

branch) banking services and access to

credit.

ii. For Corporations: Faster access to capital,

reduced revenue leakage and reduced cash

handling costs.

iii. For Governments: Increased tax

collections, greater financial inclusion,

increased economic development even when

governments are exempted from the cashless

policy implementation, it is still desirous of

its increased revenue potentials.

iv. Improving Hygiene on Site:-eliminating

the bacterial spread through handling notes

and coins.

III. RESEARCH METHODOLOGY

A. Research Design

The research design used in this study is

the descriptive survey method which involves

the use of a representative sample from the

population. A sample size of 250 was selected

using the convenience sampling procedure.

The method used to collect data for this study

is structured questionnaire. A total of 250

copies of the questionnaire were personally

administered to randomly selected traders of a

popular Awolowo market in Mushin Local

Government Area, Lagos state, Nigeria out of

which 237 copies were retrieved in usable

form. This represents a response rate of 94.8%.

The responses from the respondents were

collated and analyzed using the simple

percentage procedure. The questions asked

included questions to check the level of

awareness and acceptance of the policy by the

respondents. It tries to evaluate the efforts

exerted by the CBN to make Nigerians aware

of the new policy being introduced. It also

tried to get some additional recommendations



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and comments from the respondents. The

questionnaire was divided into two sections.

The first section included general information

about the respondent and to differentiate

among those who had some knowledge about

the cashless policy and the ones who had no

information about it. The second section

included the source of their knowledge,

preferences, features expected, and an

evaluation of the efforts of the government.

The population of the respondents included

almost equal number of males and females.

Some who were not willing to complete the

questionnaire were granted short interviews

about the policy where possible. Some of the

respondents were not able to give instant

response to the questionnaire since they were

busy with their customers when they received

the questionnaire. This was not however

considered a problem as it enabled them to

complete the questionnaire at their own

convenience. The result shows that 79.7% of

the respondents operated at least one bank

account while 98.3% had at least one cell

phone. It also showed that a whopping 94.9%

of the respondents are actually aware of the

policy, indicating that the respondents were

actually sincere in their responses since the

first instruction in section two stipulated that

anyone without a prior knowledge of the

policy should not respond to any of the

remaining questions in section two. This is

considered to be so because one would have

expected most respondents to claim ignorance

of the policy in order to avoid attempting the

remaining questions.

B. Research Instruments and Procedures The main instruments in this study were quite

abundant. These include both primary and

secondary data as explained below. The secondary

data includes on-line and printed resources and are

listed in the references section of this project write

up. Lecture notes on ―Seminar on Computer and

Society‖ and the Seminar write-up were consulted.

The instruments employed in gathering the primary

data include structured questionnaires and short

oral interviews that were also employed at various

stages of the research as necessitated. Finally, in

terms of procedures, ample information was found

on the Internet using such key phrases as ‗cashless

economy‘, ‗e-payment instruments‘, ‗components

of cashless economic system‘, ‗cashless Nigeria

project‘ and ‗CBN + cashless policies‘. While

information from the Internet was very good, much

of it seemed dated. Actually, this was not bad as it

enabled me to get a better grasp of the

underpinnings of cashless economy policies.

VI. DATA ANALYSIS AND DISCUSSION

Table 4.1: Educational Level of Respondents

Educational

Level

Respondents Percentages

FSLS 31 13%

WASSCE/GCE 149 63%

Undergraduate 11 5%

Graduates 46 19%

TOTAL 237 100%

The analysis of educational level of those who

responded to the questionnaire reveals that the

majority of those who answered the questionnaire

fell within the O‘ Level representing 63% of the

respondents. Those with BSc constitute just 19%.

Based on the table above, as illustrated by the pie

chart next to it, a greater percentage of Nigerians

have a low level of education. There is no doubt

that the respondents were honest in their responses

which could not be unrelated to the fact that their

names were not requested. This problem of low

level of education among Nigerians has been

repeatedly cited by many analysts as one of the

reasons they insisted that Nigeria is unripe for

cashless economy. This is due to the fact that to

implement an effective e-payment cashless policy,

average citizen needs sufficient education and the

knowledge of computer usage to fully participate in

it.

Table 4.2: Computer Literacy status of Respondents

Yes No

Computer literacy 44

(i.e.19%)

193

(i.e. 81%)

Table 4.2 above on the computer literacy status of

the respondents shows that the level of computer

literacy among the respondents is quiet low, only

19%, which leaves the CBN with much work to do

in order to educate the people on the workings and

usage of the payment system to avoid a situation

where the unscrupulous ones among the computer

literate few would defraud illiterate ones in the

pretence of helping them out. This problem, if not

well managed could lead to the rejection of the

policy especially by the non-computer literate

majority.



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Table 4.3: Banking Status of Respondents None One Two More than two Number bank accounts

owned

33 (14%) 152 (64%) 45 (19%) 7 (3%)

Table 4.3 shows that most of the respondents

owned at least one bank account. This may not be

unconnected with the fact that this research was

conducted in an urban area. If a similar exercise

were to be conducted in a rural market, the reverse

may be the case as the number of the unbanked is

expected to be higher in the rural area. Hence, the

CBN must find ways of involving the large number

of the unbanked in its cashless policies in order for

the project to achieve its aims and objectives.

Table 4.4: Number of handsets owned by the Respondents

None One Two More than two

Number of handsets

owned

12 (5%) 148 (63%) 72 (30%) 5 (2%)

The result in table 4.4 shows that majority of the

respondents owns at least one handset gives a ray

of hope for the realization a cashless Nigeria as

anyone who owns and makes use of a cell phone

can effectively make use of at least one of the

payment options available in a cashless economy

via telephone.

Table 4.5: Sources of Awareness by the correspondents

Source Radio/TV Newspapers/magazines Internet Sources Other Sources

Number of Respondents 183

(i.e. 77%)

51

(i.e. 22%)

17

(i.e. 7%)

44

(i.e. 19%)

Table 4.6: Status, Awareness and Preferences

for Cashless Policy

The responses to the questions in the questionnaire

provided the basis for the following analysis. Table

4.5 and 4.6 above represents responses to such

questions as the respondents‘ awareness, sources

and preference for the cashless economy and its

introduction in Nigeria. It shows that there is a high

degree of awareness among the populace about the

cashless economy project since 79.4% of the

respondents are aware of Nigeria‘s intention go

cashless come 2013. The reason for this high rate

of awareness coupled with the fact that majority of

them got their awareness from Radio/TV may

mean that the CBN has done a good job in using

those media and owing to the nature of the sample

selected.

An interviewee, a young man that deals in printing

materials, who would not want to be named

expressed frustration about his customers‘

unwillingness to use a POS machine he collected

from his bank some months ago as they readily

tender their cash when told about the POS option,

fearing it could lead to their accounts being

tempered with. Another trader, a female, speaking

her mind about the cashless policy was not excited

at all as she expressed her concern that the world is

approaching the Biblical era of the antichrist and

subsequently ‗666‘. She re-emphasized her

determination never to have anything to do with

cashless payment in all its forms but wondered how

long her resolve would be attainable.

Reasons frequently cited to support calls to delay

the implementation of the policy included: the lack

of preparedness for the system, the nation having

other problems to solve now, freedom to use cash

to any amount, the high level of illiteracy,

inadequate technology, and that the flow of money

will be hampered.

Number %

Aware of the proposed policy 225 94.9

Prefers Physical cash to electronic

modes of payment

168 70.9

The policy would help in the fight

against corruption and money

laundering

152 64.1

The policy should be implement

immediately

28 12.0

Places Security of account in high

priority for accepting the policy

136 57.8

The policy will make business

activities easier

41 17.7



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The results from the tables above and the opinions

of the interviewees show that there are some

problems which the respondents are envisaging to

come with the cashless economy which may have

informed their apparent reluctance and lack of

enthusiasm about the cashless economy. Exposure

to fraudulent activities ranks first among such

perceived problems, 57% of the respondents places

security of their accounts in the highest priority for

accepting the policy and some believe that internet

fraud is the major problem to be tackled in the

cashless economy. The problem of illiteracy can be

considered to be another major menace for the

cashless economy. This is so because of the high

level of illiteracy in our society. How can the

illiterate petit trader and rural dwellers cope with

the demands of the cashless economy? Another

problem has to do with logistics. The facilities,

such as point of sales terminals and automatic teller

machines may constitute a serious drawback – or

the inadequacy of the machines.

V. SUMMARY RECOMMENDATIONS

AND CONCLUSION

A. Summary

Above analysis refers, it appears that much has

already been done in making the people aware of

the cashless economy. However, some have wrong

understanding of the policy as some see it as a total

absence of cash. It also appears that many people

actually agree with the government on the

usefulness of the cashless economy. It is agreed

that the cashless system will be helpful in the fight

against corruption and money laundering. One

most significant contribution of the cashless

economy is that it is expected to reduce the risk

associated with carrying cash. Since most

transactions will now be settled electronically,

people will have less need to move around with

cash and therefore, loss of cash, theft and armed

robbery will drastically reduce. One major problem

in the working of the cashless economy is internet

related fraud. Nigeria is a major hub of electronic

fraud and this can only be expected to increase as

we march into the cashless economy. Illiteracy is

also a major factor. The level of illiteracy in

Nigeria is still very high. The cashless economy is

effectively an e-economy and in any e-system there

is almost no place for the non-literate.

B. Recommendations

To make for the smooth implementation of the

cashless system in Nigeria, the following measures

are recommended.

There is a need to intensify the public

enlightenment programme about the cashless

system so that every body will be acquainted

with the system before its nation-wide

introduction since it will affect everybody.

Since there is a high rate of illiteracy, and all

people must be brought into the system, the

government should design special

enlightenment programmes for the non-

literates, using probably signs and symbols to

educate this segment on how to operate the

cashless system.

Nigeria should make concerted efforts to

design an internet security framework to check

online fraud so that the public can be assured

and protected against cyber attack and fraud.

There should be a careful study of the system

to determine the number of point of sales

terminals that will ensure its smooth running in

Nigeria in order to prevent unnecessary

friction in the system.

There should be adequate legislation on all

aspects of the operations of the cashless

system so that both the operators of the system

and the public can be satisfactorily protected.

The government needs to ensure that the cost

of telecommunications, hardware and software

are made cheap, which will involve examining

existing taxes and import duties.

C. Conclusion As elaborated earlier in this study, the retail

payment systems in Nigeria have remained highly

cash-based and inefficient. Even the developed

countries are making concerted effort to ensure a

cashless society and Nigeria cannot wait to

embrace this concept. It is not possible to discuss

all of the issues and investigations during the

compilation of this project write-up. Hence, it is

very likely that report has only succeeded in

scratching the subject by the surface since this is a

very broad subject.

The cashless project is novel. It is required for

financial system advancement, payment system

unification with the entire world, required for

economic growth and development, spread of

operations; efficiency and depth of the financial

system operations both local and internationally,

and increased profitability for banks. However,

there is need for caution, subtitling and respect for

the society, the CBN is created to serve. Supportive

human face must be adopted in the implementation

of policies rather than adoption of carefree force

and intimidation as seen in the punitive measures

embarked upon by the CBM to drive home its

policies, otherwise the project might fail to achieve

the desired results at the end of the day and the

country and the financial system will be worse for

it. This word of caution must be seen as ‗a stitch in

time‘ as all hands remain on deck to make this



3

project a success as its associated benefits will

surely enjoyed by all stake holders in the long run

if properly implemented.

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Economy & Finance

Empirical analysis of people awareness, attitudes and implications of cashless society policy in nigeria