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More Nigerians Embrace Alternate Transaction Channels as Paucity of Cash Worsens

Other alternative transaction methods Nigerians have been adopting included USSD, internet banking, mobile app banking, Point of Sales (POS), e-wallet among other electronic channels of transactions.

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The dream of Nigeria moving into a full cashless economy appears to be gaining momentum as more citizens have been embracing alternative transaction channels following the worsening paucity of the naira.

At various trading outlets and industries, merchants and buyers are seen using other means of transferring money.

Findings by Investors King revealed that other alternative transaction methods Nigerians have been adopting included USSD, internet banking, mobile app banking, Point of Sales (POS), e-wallet among other electronic channels of transactions.

The federal government, through the Central Bank of Nigeria (CBN), had informed Nigerians of the need to mop out huge cash in circulation, lamenting that many Nigerians have hoarded the naira notes and that it was affecting the economy. For this reason, in 2022, the CBN announced a Naira redesign policy, withdrawal limits, and encouraged Nigerians to adopt electronic forms of transactions.

The apex bank had said that the maximum weekly limit for cash withdrawals across all channels by individuals and corporate organisations shall be N500,000 and N5 million respectively and advised customers to use alternative channels to conduct their banking transactions.

The CBN had said that the use of cash payments would reduce in the country by 2025 and noted that this dream is already contained in its Payments Vision 2025 document.

It explained that by 2025, the country will have a cashless and efficient electronic payment system infrastructure to service all the sectors of the economy.

The bank had asked Nigerians to start adjusting, adding that the use of cash will naturally slow with the ‘mobile first generation’, which will be economically active by 2025. Thus, the bank document explained that one of the focuses of the PSV 2025 is enhancing the cashless policy of the CBN.

The bank assured that the full implementation of the PSV 2025 agenda would contribute to the overall national economic growth and development of the country.

As banks witness huge crowds, especially at the Automated Teller Machines (ATMs) nationwide, people have been going digital for their transactions while others still depend on cash.

This was confirmed by the National President, Association of Mobile Money and Bank Agents in Nigeria, Victor Olojo. He said many residents now seraph vigorously for POS operators and other alternative channels of transactions.

He said some POS agents could not get cash for business and so, have shut down operations while adding that the development further forced people to go digital in their transactions.

Though, this policy has brought untold hardship and frustration on Nigerians, many are surviving it and adjusting to the cashless mode that the nation wants to fully implement.

Nigeria Inter-Bank Settlement System (NIBSS) recently conducted a survey on how Nigerians are adapting to the new order and found out that electronic and cashless transactions are gaining ground.

It said the scarcity of the naira has made POS transactions increase from N573.72 billion recorded in January 2022 to N807.16 billion in January 2023.

The increment, according to NIBSS, is 40.69 percent. It said the total cashless transactions in Nigeria rose by 45.41 percent year in year out to N39.58tn in January 2023.

It said it monitors cashless transactions through the Nigeria Instant Payment System and Point of Sales terminals adding that the total NIP transactions for the period increased by 45.52 percent y-o-y from N26.65tn as of January 2022 to N38.77tn as of January 2023.

According to the inter-bank system, the usage of electronic channels for transactions grew by 45.50 percent y-o-y from 438.48 million times to 638 million times in the period under review, saying that there were 955,234 deployed PoS terminals in the country as of January 2022.

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Insurance

Heirs Insurance Group Unveils Revolutionary Website for Seamless Insurance Experience

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Heirs Life Assurance- Investors King

Heirs Insurance Group has launched a website designed to revolutionize the insurance experience for its customers.

With a focus on simplicity, accessibility, and personalized service, the new website aims to streamline the process of obtaining insurance coverage and empower customers to make informed decisions about their insurance needs.

The website boasts a range of innovative features that make navigating insurance options easier than ever before.

From simple and intuitive navigation menus to personalized insurance recommendations, the website is designed to guide customers through every step of the insurance process quickly and efficiently.

According to Ifesinachi Okpagu, the Chief Marketing Officer of Heirs Insurance Group, the new website embodies the company’s commitment to delivering exceptional customer service.

“Today’s customers want simplicity, and this new website delivers on that request,” Okpagu said. “We are empowering customers to take control of their lives, their businesses, assets, and their most cherished people.”

One of the key features of the website is its personalized insurance experience, which takes customers through a short journey to help them identify the best insurance plan for their needs.

Whether customers are looking for coverage for their home, car, business, or loved ones, the website provides tailored recommendations to ensure they find the right insurance solution quickly and easily.

With its user-friendly interface and innovative features, the new website from Heirs Insurance Group sets a new standard for the insurance industry, making it easier than ever for customers to protect what matters most to them.

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Banking Sector

Safaricom, Access Holdings Forge Partnership to Revolutionize Remittance Corridor in Africa

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Safaricom, the leading telecommunications company in Kenya, has entered into a strategic partnership with Access Holdings, spearheaded by Aigboje Aig-Imoukhuede.

The collaboration aims to revolutionize the remittance corridor between East and West Africa, marking a significant step towards enhancing financial inclusion and empowering millions of individuals across the continent.

The partnership comes on the heels of Access Holdings’ recent acquisition of the National Bank of Kenya Limited, signaling the company’s ambitious expansion into the East African market.

Leveraging Safaricom’s extensive network and expertise in mobile money through M-Pesa, which currently dominates the mobile money market in Kenya, the alliance seeks to create seamless and efficient channels for remittance transactions.

Aigboje Aig-Imoukhuede, the driving force behind Access Holdings, expressed enthusiasm about the collaboration, highlighting its potential to transcend traditional boundaries and foster greater economic connectivity between East and West Africa.

He highlighted the fusion of collective expertise and resources between the two entities, underlining their shared commitment to driving financial inclusion and empowerment across the continent.

The partnership holds promise for addressing the challenges faced by millions of Africans in accessing affordable and reliable remittance services.

By connecting more than 60 million customers and 5 million businesses across eight countries, the collaboration aims to facilitate over $1 billion in daily transaction value, significantly boosting the flow of remittances within and outside Africa.

With the first phase of the collaboration focusing on key markets such as Nigeria, Kenya, Ghana, and Tanzania, stakeholders anticipate a transformative impact on the remittance landscape, paving the way for greater intracontinental trade and economic integration in line with the objectives of initiatives like the African Continental Free Trade Area (AfCFTA).

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Banking Sector

EFCC Urged to Repatriate Recoveries to NDIC for Depositors’ Relief

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The Nigeria Deposit Insurance Corporation (NDIC) has made a fervent plea to the Economic and Financial Crimes Commission (EFCC) to expedite the repatriation of recovered funds to its coffers to facilitate the timely reimbursement of depositors affected by bank failures.

During a recent meeting between the Managing Director of NDIC, Bello Hassan, and the Executive Chairman of the EFCC, Ola Olukoyede, at the NDIC headquarters in Abuja, Hassan stressed the importance of enhanced collaboration between the two agencies in recovering depositors’ funds lost due to bank failures.

Hassan emphasized that the return of recoveries made by the EFCC on behalf of the NDIC would significantly contribute to the prompt reimbursement of affected depositors.

He commended the EFCC for its unwavering efforts in combating corruption and financial crimes, highlighting its crucial role as a key member of the Taskforce on Implementation of the Failed Banks Act chaired by the NDIC.

The NDIC boss also highlighted the existing partnership between the two organizations, which led to the establishment of the NDIC Help Desk at the EFCC in 2022.

He disclosed that several high-profile cases referred to the EFCC were currently under investigation.

In response, Olukoyede reiterated the EFCC’s commitment to collaborating closely with the NDIC to combat financial crimes and safeguard the integrity of the Nigerian banking sector.

He pledged to intensify efforts to repatriate recovered funds promptly, acknowledging the interconnectedness between criminal activities and bank failures.

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