Cashless policy initiative in Nigeria: outline of crucial socio-economic and regulatory considerations
| Date | 07 August 2023 |
| Pages | 445-458 |
| DOI | https://doi.org/10.1108/JMLC-05-2023-0098 |
| Published date | 07 August 2023 |
| Subject Matter | Accounting & finance,Financial risk/company failure,Financial compliance/regulation,Financial crime |
| Author | Ogochukwu Monye |
Cashless policy initiative in
Nigeria: outline of crucial
socio-economic and
regulatory considerations
Ogochukwu Monye
University of Benin, Benin City, Nigeria
Abstract
Purpose –The Central Bank of Nigeria (CBN) recentlyrelaunched Nigeria’s cashless policy initiative which
seeks to reduce financial crimeand tax avoidance, decrease cash dependency, advancethe adoption of digital
financial services (DFS), decreasethe risks to the payment system and foster financial inclusion. This study
aims to identify the unique challenges of goingcashless in Nigeria, particularly in terms of infrastructural,
exclusionaryand cost implications of the policy onthe average citizens.
Design/methodology/approach –The author applies a doctrinal research methodology to identify
and reflect on key challenges of the cashless policy from the economic, regulatory and transactional
perspectives.
Findings –The cashless policy initiative in Nigeria heralds value for financial integrity, financial policy
regulation and user convenience. The mode of introduction, however, ushers in significant challenges and
hardly considers Nigeria’s inadequate payment infrastructure, persistent financial exclusion, low levels of
financial and digital literacy and capability, high cost of using DFS and pervasive proclivity for cash. As
Nigerians adjust albeit inconvenientlyto the policy, the CBN can ameliorate the hardship by strengthening
the payment infrastructure,particularly for digital payments, fostering consumer trustby safeguarding user
funds and enablingconsumer preferences.
Research limitations/implications –Research materials include the national regulator’s policy
documents andnewspaper articles that have not been published in formalreports but non-the-less adequately
mirror the policyintention of the CBN and the lived experiences of Nigerians.
Practical implications –This study identifiesthe practical steps and regulatory measures that the CBN
can take to improve acceptance and meaningful and sustainable adoption of the cashless policy by the
majorityof Nigerians.
Social implications –The recommendations that are proffered provide some rich insights to inform
regulatory direction for the CBN to seamlessly phase-in the cashless policy and consequently drive down
financialexclusion in Nigeria.
Originality/value –This study contributesto the policy discussion around the introductionof the cashless
Nigeria project. The doctrinal research method highlights the policy intentions of the regulator in
juxtaposition with lived experiences of Nigerians. This study offers recommendations to bolster financial
inclusion,stability and integrity.
Keywords Cashless policy, Digital transition, Financial integrity, Financial inclusion,
Digital financial services
Paper type Research paper
This work is part of the publication output for the 2023 British Academy Visiting Fellowship grant
VF2\101177. Funding from the British Academy is acknowledged.
Ogochukwu Monye is a Higher Research Affiliate, Private Law Department, University of Cape
Town, South Africa. This research was carried out as part of the British Academy Visiting
Fellowship Grant 2023 at the University of Southampton, United Kingdom.
Cashless
policy
initiative
445
Journalof Money Laundering
Control
Vol.27 No. 3, 2024
pp. 445-458
© Emerald Publishing Limited
1368-5201
DOI 10.1108/JMLC-05-2023-0098
The current issue and full text archive of this journal is available on Emerald Insight at:
https://www.emerald.com/insight/1368-5201.htm
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