‘Nigeria still cash-based economy’ - THE NATION
THE Deputy Managing Director, eTranzact International Plc, Hakeem Adeniji-Adele, has said Nigeria is still a cash-based economy.
He reacted to the latest figures from the Nigeria Inter-Bank Settlement System (NIBSS) which put the total value of transactions on automated teller machines (ATMs) at N1.5 trillion in first quarter, while mobile money operations and web payments were N810.1 billion and N107.6 billion respectively.
He said there were more transactions on electronic transfer such automated clearing house (ACH) NIBSS Electronic Fund Transfer and NIBSS Instant Pay (NIP) than there were on ATMs, even though both options had bank branches as part of their channels.
“So far, the Central Bank of Nigeria (CBN) has granted 79 licences to players in the payment system while another 26 have approvals in principle; this call into question the level of cash circulating in the country. Nigerians love to handle tangible money, it’s a mindset thing,” he saidd.
He pointed out that the total value of transactions using ATMs in first quarter this year and the fact that it’s almost impossible to go a day without cash in the country gives credence to the claim that the country is still predominantly a cash-based economy.