Ict/Telecom
Cashless Policy: CBN, NIGCOMSAT Partner On Internet Access
The Central Bank of Nige
ria (CBN) has said it has concluded plans to partner with Nigerian Communication Satellite (NIGCOMSAT) for the provision of wireless internet service.
The CBN Principal Manager, Shared Services, Mr Aaron Yaduma, said that the measure was to give necessary push to cashless policy in the country, last Tuesday.
Yaduma made this known in a paper titled: “Cashless Policy, the Journey So Far”, presented at a three-day sensitisation workshop on CBN cashless policy in Bauchi on Tuesday.
He said that the effort was to address the internet connectivity problem, being one of the major challenges affecting the implementation and penetration of the cashless policy in the country.
“A tripartite MoU has been drafted for NIGCOMSAT, CBN and Nigerian Interbank Settlement System (NIBSS) for the provision of the Wi-Fi hotspots.
“If the partnership arrangement is concluded, we hope to connect every part of this country with internet service via Wi-Fi hotsport.
“We have already commence discussion with NIGCOMSAT to see how we can make General Packet Radio Service (GPRS) technology available in rural areas for the deployment of Point-Of-Sales (POS) terminals,’’ he said.
Yaduma said that the cashless policy was introduced in 2012 with the main objective of reducing the amount of physical cash circulating in the economy through the encouragement of more electronic-based transactions.
He said that the policy was introduced for a number of key reasons, namely to meet Vision 2020 requirements, modernise Nigeria’s payment system and reduce the cost of banking services.
According to him, it is also to improve effectiveness of monetary policy, reduce high security and safety risks and foster transparency and curb corruption.
He said that besides internet connectivity, people misconception of the policy and fuelled conspiracy theories amongst stakeholders had also hampered the adoption of the policy.
“There was also resistance due to prevailing cash culture, Techno-fobia , Illiteracy, entrenched poverty, insufficient infrastructure, distrust in banking system and merchant apathy, “ he said.
He, however, said that steps were being taken to address all the challenges, adding that the cashless Nigeria project was gaining massive adoption rate across the nation, especially with the support from Federal and State governments.
Earlier, the CBN Branch Controller in Bauchi State, Malam Musa Muhammad, explained that the essence of the workshop was to sensitise and educate all stakeholders on the gains of the cashless policy.
He added that the sensitisation would also be carried out in 30 states of the federation where the policy was designed to take effect.
He called on the government, markets associations, community leaders, professional bodies, religious organisations, students to embrace the policy for its advantages.
Some of the participant who spoke to newsmen expressed worry that the policy will not favour a lot of people due to low level of education and access to electronic gadgets.
Mrs Maryam Gamzo, the Chairperson, Market Women and Men Association in the state, said the policy would be at a serious disadvantage to market women because of their low level of literacy.
“Our women only understand the business of pay cash and carry, and now they are telling us to use machines instead of cash. Without money how are we going to buy goods from the villages.
“Again, if our customers stopped using money to make purchases, how do we know if we are making profit or not and what do we take home at the end of the day,’’ she said.
Another participant, Malam Yakubu Bayara said that the policy would only succeed in major towns and not in the rural areas.
According to him, in the rural areas the purchasing power is between N20 to N200 per day, and the illiteracy figure is very high.
Some of the students during the advocacy campaign on computer-based test organised by the Joint Admissions and Matriculation Board (jamb) ahead of its Unified Tertiary Matriculation Examinations (umte) in Gombe, recently. Photo: NAN
The Managing Director, Shell Nigeria Exploration and Company Limited (SNEPCo), Elohor Aiboni, said Bonga, Nigeria’s first deep-water asset, has recorded major milestones, due to effective leadership, cutting-edge technology, continuous improvement and collaboration with stakeholders.
She noted that since coming on stream in November 2005, Bonga has maintained a track record of production that saw it achieve one-billion-barrel export on February 13, last year.
In her presentation, titled “The Bonga Journey to a Billion Barrels”, at the ongoing 2024 Offshore Technology Conference in Houston, Texas, United States, Aiboni, said: “SNEPCo is grateful for the contributions of all the parties to the Bonga story and we can all be proud of the milestones.
“Bonga has been consistent. In 2014, nine years after coming onstream, it achieved half a billion barrels of crude and doubled it in 2023. We have worked relentlessly to ensure excellent asset management, project and wells delivery and deployment of technology and innovations in our operations”.
According to her, these factors, “coupled with the supportive partnership of the Nigerian National Petroleum Company Limited and our co-venturers – TotalEnergies, EP Nigeria Limited; Nigerian Agip Exploration; and Esso Exploration and Production Nigeria Limited, make Bonga stand out as a world-class investment case”.
She continued that, “SNEPCo also enjoyed the support of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Content Development and Monitoring Board (NCDMB) in the success of Bonga operations”.
Aiboni also listed the challenges of keeping the Bonga Floating Production, Storage and Offloading vessel full as the asset ages and dealing with unexpected developments with subsea wells and equipment.
She said: “SNEPCo responded with a campaign of operational excellence, which among other initiatives, led to the creation of a programme known as the Bonga Business Improvement Plan that continually reviews and identifies improvement initiatives and drives sustainability in operations and upskilling of staff.
“The Bonga success story has been led by Nigerians who have been managing directors of SNEPCo since it was established in 1993, in a deliberate policy by Shell to develop indigenous manpower for deep-water operations in Nigeria.
“Today, some 97percent of the SNEPCo workforce is Nigerian and overall, Bonga has helped to create a new generation of Nigerian deep-water professionals.
“Our vision at SNEPCo remains to be the best deep-water business, powering growth and achieving net zero emissions in line with Shell’s Powering Progress strategy”.
Banks’ borrowings from the Central Bank of Nigeria (CBN) fell month-on-month, (MoM) by 44 percent to N12.16 trillion in April from N21.7 trillion in March.
Analysis of latest data from the CBN shows that the 44percent drop represents the first MoM decline in banks borrowing from since January when it increased by 268.7 percent to N3.6 trillion from N976.29 billion in December 2023.
However, further analysis showed that banks’ deposits in the CBN SDF grew MoM by 118.4 percent to N428.97 billion in April from N196.37 billion in March 2024.
Banks make use of the SLF to access liquidity to run their day-to-day business operations while the Standing Deposit Facility window (SDF) on the other hand, is an overnight deposit facility that allows banks to lodge excess liquidity (money) with the CBN and earn interest.
The decline in banks’ borrowing from SLF may reflect an increase in banking system liquidity and also the decision of the apex bank last year to remove the limit on the remunerable daily placements by banks at the SDF.
According to the CBN Governor, Mr. Olayemi Cardoso, the CBN removed the cap on the remunerable SDF to increase activity in the SDF window and manage liquidity.
A Financial technology expert, Olatunji Akinrinola, has highlighted the exponential growth of the FinTech industry, which according to him, was driven by technological advancements.
Akinrinola made this assertion in a press release recently, where he stressed that the role of technology in driving this exponential growth in the FinTech sector was very outstanding.
According to him, Technology has revolutionised the way financial services are delivered, making them more accessible, efficient, and inclusive.
“Through innovations such as mobile banking, digital payments, and blockchain technology, FinTech companies have been able to reach a larger population and provided them with access to financial services”, he stated.
Akinrinola emphasised the role of technology in enabling financial inclusion, adding: “Technology has democratised access to financial services, particularly in regions with limited banking infrastructure.
“Mobile money platforms and digital wallets have empowered individuals to conduct financial transactions conveniently and securely, without the need for traditional banking services”.
He also underscored the role of Artificial Intelligence (AI) and data analytics in driving innovation within the FinTech industry, noting: “AI-powered algorithms and predictive analytics have revolutionised risk assessment, fraud detection, and customer personalisation in financial services.
“These technologies enable FinTech companies to provide tailored solutions and mitigate risks more effectively, ultimately enhancing the overall customer experience”.
Akinrinola stressed the importance of regulatory frameworks in fostering the growth of the FinTech industry.
“While technology has accelerated the growth of FinTech, it is essential to establish robust regulatory frameworks to ensure consumer protection and maintain market stability. Regulators play a crucial role in balancing innovation with risk management, thereby creating a conducive environment for the sustainable growth of the FinTech sector”, he stated.
Akinrinola underscored the role of technology in driving the exponential growth of the FinTech industry, saying, “Technology has been a game-changer for the FinTech sector, enabling innovation, expanding access to financial services, and driving economic growth.
“As technology continues to evolve, the FinTech industry will undoubtedly play a significant role in shaping the future of financial services ecosystem”.
Corlins Walter
