EFFECTS OF CASHLESS POLICY ON THE AVERAGE NIGERIAN- favour uzoaru
INTRODUCTION

The Central Bank of Nigeria has introduced a cashless policy to reduce the use of cash in the country's economy which will brutally change some cultures and ways of life

Very soon many Nigerians will no longer stuff their wallets and bloat their plastic bags with cash to town or market for businesses. Very soon armed robbers in the most populous country in Africa will no longer be able to make off with thousands and millions of Naira from their victims.

The bandits will instead find plastic cards with a magnetic strip deep down in the stolen handbags and suitcases. And they may be frustrated for not being able to use the cards.

This appears to be the new trend of life many Nigerians will be learning to live in the very near future after the Central Bank of Nigeria (CBN) recently announced it would transform the economy to a cashless one to reduce the amount of cash circulating in the country.

Many Nigerians are yet to set their eyes on or own a payment card to operate in the new electronic payment systems, however, authorities and financial institutions are confident that aggressive enlightenment campaigns will be able to change that culture.

In Nigeria, having or holding liquid cash is not only meant for purchases or payments. It yields a sense of security against uncertainties, like emergency health issues at odd hours, stumbling on a quick, cool business deal and prestige. How much can you donate or "spray" during social functions such as engagements, weddings, important birthdays, chieftaincy title ceremonies and funerals? These occasions are used to showcase not only the richness of their culture, but wealth and generosity.

The cashless environment will certainly change behaviours and present a whole new way of life to many Nigerians but it will serve them right in the long run.
Some of the benefits of the cashless policy:

1) Electronic payments will help businesspeople grow their customer base and resource pool, far beyond the limitations of their immediate geographic area.

2) Using a payment card gives convenience and security than making cash withdrawal and moving to where to make purchase.

3) It will drive the development and modernisation of the Nigerian payment system, promote transparency and accountability, reduce transaction costs and decrease the size of the gray or informal economy.

4) It will reduce pickpocketing and highway robbery which are rampant in Nigeria, where robbers are aware that travellers pack thousands and millions of Naira in their bags for their journeys.

5) It will help users control reckless spending and improve personal accountability.

Visa and MasterCard in Nigeria say there are determined to accompany the CBN, the financial sector, consumers and businesses in making the cashless initiative a success.

In a communiqué released in Nigeria's largest city Lagos last week, MasterCard said it would help Nigerian banks and retailers reinforce their capacities to facilitate the reduction of cash within their payment systems by offering innovative, safe and convenient payment alternatives to their customers.

Visa announced last weekend that it had surpassed the five million cards milestone in Nigeria, as it continues to ramp up local in-market presence to support growth in the country and the push towards electronic payments.

"Banks have continued to roll out more innovative electronic payment platforms to meet customers' expectations. Currently, banks have deployed about 100,000 PoS terminals and before the end of the year, if things go as planned, about 150,000 PoS terminals will have been deployed in Lagos alone," says Chidi Umeano, head of Shared Services at CBN.

The above are signs that Nigeria is about to experience a new era in its economic life but it has to blend in with the financial cultures of the people to stay and strive.
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Wow....wonderful article by Favour Uzoaru, its a very fascinating and catchy article, learnt alot and it really shows how an average Nigerian can benefits from cashless policy. However going cashless is more than just accepting payment online, there is really more to cashless policy. I came across an article that could help explain this better. http://voguepayblog.com/going-cashless-accepting-payment-online-solved-real-problem/