Cashless Policy: Prospects and Problems in Nigerian Environment
- September 8, 2019
- Posted by: RSIS
- Category: Accounting
International Journal of Research and Innovation in Social Science (IJRISS) | Volume III, Issue VIII, August 2019 | ISSN 2454–6186
Cashless Policy: Prospects and Problems in Nigerian Environment
Elizabeth Oyebola AGBESANYA, Waheed Solagbade OLADEJI
Department of Accountancy, The Polytechnic, Ibadan, Nigeria
Abstract: – The cashless policy was introduced with the objective of promoting the use of electronic payment channels such as Point of Sales (POS), Automated Teller Machine (ATM) in order to reduce the risk associated with carrying about physical cash and to enhance immediate transactions. Its introduction brought about mixed feelings among the stakeholders especially its operation in the environment where the irregular supply of electricity and dwindling internet connectivity is the order of the day. While acknowledging that its adoption in the developed economy creates ease and convenience to all participants, there has been a continuous deliberation on its operation in Nigeria where high percentage of people are not computer literate. This study examined cashless policy in its entirety in Nigeria in order to draw attention to its benefits and the challenges impeding its practice and to make recommendations necessary for effectiveness and general acceptability.
Keywords: Automated Teller Machine, Cashless Policy, Economy, Environment, Point of Sales.
I. INTRODUCTION
A cashless economy is one in which the flow of cash within an economy is non-existent and all transactions have to be through electronic channels such as direct debit, credit and debit cards, electronic fund transfer, electronic clearing, mobile payment systems such as Immediate Payment Service (IMPS), National Electronic Funds Transfer, multifunctional ATMs and a significant Point of Sales (POS) penetration and usage.
It also allocates investment funds among firms. One of the aims of the Central Bank of Nigeria (CBN) in embarking on the cashless policy is to reduce cash handling. An efficient payment system is a feature of economic development and a key enabler of economic growth. – (CBN , 2011).
