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: engryekini@yahoo.com
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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