An Historical Overview of the New Cashless Policy in Nigeria

Abstract

The most recent and ongoing development in the annals of monetary history in Nigeria is cashless policy which preparation began in 2010, but came on board on a pilot scheme for the first time on 1^st April, 2012. Although the policy can be regarded as a new stage and dimension of imperialism that tries to turn the whole world into global village in terms of financial transactions, if successfully adopted nationwide, it has the tendency of becoming a turning point in the history of not only currency in the country, but also the entire economy from cash oriented to a cashless one. It should however be noted that before the introduction of the policy, certain systems which provided an enabling environment for its take up were adopted by both banking sector and government in Nigeria. These are electronic banking (e-banking) and electronic payments (e-payments). The aim of this paper is to assess the journey so far, pertaining to the introduction and gradual spread of the new cashless policy in Nigeria. The paper first of all discusses the concept of cashless policy as well as adoption of e-banking and e-payment systems, which provided fertile ground for the eventual introduction and spread of the cashless policy. Benefits derivable from the policy as well as problems and challenges facing it are also examined.