FOR Nigeria's cash-less programme to become successful, there is a need for the Central Bank of Nigeria (CBN) to review the model through which it works with the telecommunication companies, while enhancing financial literacy and consumer protection. Specifically, one of Nigeria's mobile telecommunication service providers, Globacom, noted that the cash-less policy framework by the CBN, especially the mobile money initiative, is being driven by the bank compared to what is obtainable in other climes where the cash-less model is primarily driven by telecommunications firms. Speaking at a forum titled: 'Nigeria transiting to a cash-less society: Possibilities and challenges' in Lagos on Monday, the Senior Payment systems expert, Payment Systems Development group, World Bank, Ceu Pereira, noted that there is a need for Nigeria's apex bank to enhance its consumer protection measures and increase enlightenment efforts on financial literacy in order to effectively drive the cash-less policy. Pereira stressed the need for stakeholders in the financial sector to exercise patience in order to ensure an effective transition to a cash-less retail payment system. 'Transition to a cash-less system takes time. The ability of stakeholders to address infrastructural challenges and properly assess the situation, would aid the attainment of the set objectives. There is also a need for innovations in retail payments to drive the policy. 'The influence of consumer protection and competition laws in the payments systems space is still low. The CBN needs to work on its consumer protection measures and make financial education a must, if the cash-less policy would be successful. As much as the activities of agent bankers is necessary to drive the cash-less exercise, they must also be properly checked', she added. She, however, suggested the need to encourage the use of incentives to drive the policy, saying, 'The usage of a payment instrument depends on its cost. If price incentives are adopted, the cash-less policy would be fast-tracked, while risk management in cheque payments should also be checked'. The Director, Tele-Banking, Globacom, Tunde Kuponiyi, while speaking on the perspective of telecommunications firms on the cash-less policy, noted that the model adopted by the CBN to drive the mobile money platform is not encouraging telecommunication firms to drive the policy. He said: 'The cash-less model adopted in other climes is being driven by telecommunications firms, but the reverse is the case in Nigeria. Though mobile payment is seen as a Value Added Service, there is a need for a framework to drive greater participation of telecommunication firms in delivering the mobile money product to consumers. Services must be a win-win situation for telcos to fully support the cash-less exercise. Any mobile initiative that does not take consumption of airtime into consideration will not attract telcos'. The CBN Governor, Lamido Sanusi, who was represented by Deputy Director, CBN's banking and payment system, Olu Adaramewa, said: 'We saw that infrastructure was going to be a challenge and we are already working towards improving on that, even though the responsibility for that does not rest on our institution. In fact, only last Friday, the CBN governor met with the minister of Communication Technology and other stakeholders, just to further deliberate on the issue of infrastructure. All of these put together will launch on the right path in the cash-less policy. The central bank cannot do it alone, it requires the support of all stakeholders'.
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