By reporters
ICT experts say that expansion of the nation’s digital infrastructure ahead of Dec. 31 deadline for transition to re-designed naira notes was key to the implementation of the cashless policy
The News Agency of Nigeria (NAN) recalls that President Muhammadu Buhari had directed that the N200, N500 and N1000 should cease to be legal tenders on April 10.
However, a group of governors challenged the directive in the court and consequently, the Supreme Court in a March 3 ruling extended the validity deadline to Dec. 31.
The experts cautioned that the chaos witnessed nationwide earlier this year in the banking sector would repeat itself if urgent steps were not taken to expand the ICT infrastructure.
Some Nigerians who spoke to NAN urged the Federal Government and commercial banks to expand the country’s ICT infrastructure for the effective implementation of the targeted cashless policy.
Dr Okwara Udensi, Chairman, Manufacturers Association of Nigeria (MAN) Edo/Delta Branch, told NAN that the cashless policy would be effective if the electronic payment system were made to function effectively.
“People have lost confidence in the cashless policy because of the issues of delayed and failed transactions.
“E-channels should be made effective, we are almost getting there because micro businesses are now adopting cashless means of transactions, but the E-channel of payment is not effective.
“Banks should also reverse failed transactions instead of waiting for customers to go and lay complaints at their offices”, he said.
Similarly, Mr Ibrahim Ode, an ICT consultant, told NAN in Lafia that with right internet infrastructure, Nigeria would join comity of nations where key services not just banking had been digitalised.
“We all need to support it since everybody is using handsets, smart phone, in every smartphone there is integration of internet service.
“The whole world is looking at having the system that is fully digitalized and digitalisation will result in cashless services,” he told NAN.
Also speaking, Mrs Rhone Peters, Coordinator, Edo Export Cluster said Micro, Small and Medium Scale businesses are gradually keying into the policy.
She called on banks to beef up their internet facilities to ensure a seamless transition to the cashless regime.
Mr Mustapha Kabara, a lecturer, Department of Economics and Development Studies, Federal University, Kashere, Gombe State, told NAN that lack of ICT infrastructure was a major threat to effective implementation of the policy.
“ICT infrastructure is a key component that cannot be undermined because the issue of Automated Teller Machine (ATMs), internet banking and Point-of-Sale (PoS) are all ICT-related.
“If ICT infrastructure is not functioning well other components of the cashless policy will not work,” he said.
“The ICT industry is not mature yet. The service providers are still learning and there is room for improvement going forward just as obtained in developed economies.
“The service providers and drivers of the cashless policy should improve the system before people start losing confidence in the entire system”, he said.
Also, a Dutse-based ICT expert, Isa Uzairu, urged the federal government to ensure the provision of strong, stable and fast internet facility to fast track implementation of the cashless policy.
“Fundamentally ICT has to do with message, source, medium, protocol and receiver.
“So in banking system, ICT applies to when one deposits money (sender), bank (medium) and third party (receiver).
“ICT has a vital role to play in cashless policy. Cashless policy is for all countries, not just Nigeria. All developed countries use this cashless policy,” he said.
According to him, ICT, with good internet facilities, will enhance the fortunes Nigeria’s banking sector.
Another ICT expert, Ibrahim Bashir, urged the CBN to compel commercial banks to subscribe directly to satellite companies for effective service delivery.
Bashir also urged commercial banks to decentralise the operations of their IT units.
This, he said, would address problems associated with failed e-transactions.
“By doing so, the banks will address problems as they occur at branch level as against the current practice of referring such malfunctions to their headquarters”, he said.
Another ICT expert, Abdullahi Muhammad, advised Nigerian banks and mobile telecommunication companies to improve on their information technology capacity to ease challenges faced by customers.
Muhammad said it was unfortunate that Nigerians were going through difficult times as the cashless policy was being implemented.
“When there is pressure right from the internet service provider, there will be an overload, leading to poor network and a crash.
“For the banks to successfully implement a cashless economy, the Nigerian government must invest heavily on the provision of stable power and telecommunication infrastructure,” he said. (NAN)