Cashless transactions are faster and more convenient than cash. Digital payments can be made electronically from anywhere with an internet connection, eliminating the need to carry large amounts of money or visit ATMs frequently.
In 2023, Nigeria had a brief spell with going completely cashless, an experience that ruffled millions of Nigerians for a time.
Unfortunately, because of its suddenness and poor preparation, it posed quite a challenge, yet, stay as a lifestyle with those who read it between the lines.
There is however no doubt, that a cashless routine is the way to go in many parts of the world, coupled with the exponential advancement of digital transactions including cryptocurrency exchanges.
A chartered accountant and chartered tax practitioner, Dr Sola Ogusina, believes that an economy where transactions are not solely dependent on the exchange of physical cash is the ideal model, especially in today’s digital age where the approach promises to make transactions more convenient and seamless.
“A cashless economy preserves the quality of the naira and makes possession of money very secure that you are not exposed to infringement or armed robbery” Dr Ogusina further cited.
If planned and implemented correctly, a cashless economy could offer significant benefits for Nigeria’s financial ecosystem.
From the standpoint of a Certified Financial Market Analyst, Mr. Ezekiel Babalola states, “Cashless economy improves monetary policy implementation, helps the central bank monitor the flow of money in the economy and is a proven catalyst in rural communities where transactional hitches have formed a glut”
While further emphasizing the role of a cashless economy in improving the country, Mr. Ezekiel highlighted its potential to reduce government expenditure on printing currency, managing cash distribution, and maintaining physical infrastructure like ATMs and bank branches. These savings could be reinvested into other critical sectors, fostering overall economic growth.
An important question however is, is running a cashless economy all good without challenges? It’s absolutely not without challenges, but these challenges can be mitigated if properly addressed and carefully managed.
While the gradual transition to a cashless economy presents its challenges, the potential benefits for Nigeria are undeniable. With improved efficiency, enhanced security, and cost savings for both the government and citizens, a well-implemented cashless system could be a key driver of economic growth and financial accountability.
