Nigeria, like many other countries, has been gradually moving towards a cashless society in recent years. This shift towards electronic payments and away from cash has many potential benefits for the Nigerian economy. In this article, we will explore some of the key reasons why a cashless policy could be good for Nigeria.
One of the main advantages of a cashless policy is that it can help to reduce corruption, crime for cash (like kidnapping), and other illicit activities. When transactions are conducted electronically, it is much easier to trace and track them, making it more difficult for corrupt individuals to engage in illegal activities such as money laundering or tax evasion. This can help create a more transparent and fair economy and ultimately lead to stronger economic growth.
Another benefit of a cashless policy is that it can increase financial inclusion. Many people in Nigeria, particularly in rural areas, do not have access to traditional financial institutions such as banks or credit unions. By providing more options for electronic payments, a cashless policy can help to bring these people into the financial system, allowing them to access financial services and participate in the economy more fully.
A cashless policy can also improve efficiency and reduce costs. When transactions are conducted electronically, there is no need to physically handle cash, which can save time and reduce the risk of theft or loss. Additionally, electronic payments often have lower fees than cash transactions, which can be especially beneficial for small businesses.
Finally, a cashless policy can help stimulate economic growth by increasing the velocity of money. When people use cash, it can sit idle in their wallets or bank accounts rather than being circulated and invested in the economy. Electronic payments, on the other hand, are more likely to be immediately spent or invested, which can help stimulate economic activity and drive growth.
Overall, there are many compelling reasons why a cashless policy could be good for the Nigerian economy. By reducing corruption and kidnapping, increasing financial inclusion, improving efficiency, and stimulating economic growth, a shift towards electronic payments has the potential to drive significant positive change in Nigeria.
