What Are The Steps Taken To Digitalize Payment System?

Do you know how Nigerian Diaspora send money to Nigeria? The money transfer system is becoming more digital, with computers debiting and crediting accounts instead of pushing paper around. According to some analysts, one potential consequence of labour computerization is the eventual disappearance of cash from the market.

The new bank policy on cash-based transactions (withdrawals) aims to reduce (but not eliminate) the amount of physical cash (coins and notes) in circulation while promoting more electronic-based transactions (payments for goods, services, transfers, etc.). Cards could eliminate the need for cash if they were to become more widely used for small transactions.

What Is the Concept Of Cashless Nigeria?

The cashless society is an economy in which money transfer to Nigeria and vice versa can be carried out without the need for physical cash to trade, instead of using credit or debit cards or other electronic means of exchange for goods and services. The Nigerian Central Bank has been working hard to unlock the promise of digital payments, critical to expanding financial access on a large scale. The Central Bank, in particular, has delivered Cashless Nigeria, a bold policy forum.

In the absence of cash, Nigeria has implemented various policies, including public awareness measures, point-of-sale rules, limits on cash-in-transit facilities, and significant fees to discourage cash withdrawals and deposits (although high kick-in thresholds mean these fees generally only impact medium to large businesses). Nigeria has also launched a payment-capable National Electronic (e-ID) Card, which can be used for sending money to Nigeria online.

How Remittance Helps the Economy Of A Nation?

Remittances are essential because of the part they play in economies. Online money transfers to Nigeria assist poorer recipients in meeting basic needs, investing in cash and non-cash assets, financing education, fostering new enterprises, servicing debt, and driving economic growth. The primary advantage of remittances to recipient households, according to empirical reports, is an increase in their overall well-being. According to experts, 70% of remittance funds are used for consumption, while 30% of remittance funds are used for investment purposes.