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Bank Name: FCMB Bank

Account Type: Savings
Account number: 7749601025

Bank Name: Access Bank

Account Type: Current
Account number: 0107807602





Increasing numbers of countries have adopted policies to accelerate the use of electronic channels and reduce the use of cash. The motivations for these policies vary: many are primarily concerned with reducing tax evasion, some with fighting crime, and a few are now explicitly linked to financial inclusion though the latter link is not necessarily immediately nor automatically achieved.

In Nigeria, the Central Bank of Nigeria (CBN) announced its Cash-less policy in 2011 and commenced a pilot of the policy in Lagos State in April 2012. The policy, intended to reduce the use of cash, is in fact a package of measures, as summarized below, with three key stated objectives:

  1. To drive the development and modernization of the payment system in line with Vision 2020.
  2. To reduce the cost of banking services and drive financial inclusion by providing more efficient transaction options and greater
  3. To improve the effectiveness of monetary policy in managing inflation and driving economic growth.


The Cash-less policy consists of a package of measures directed at achieving the objectives above. The measures below have been piloted in Lagos State starting in 2012 to test the policy’s readiness for national rollout:

  1. Promoting awareness through market education and sensitization: This is done directly by the CBN and by banks, separately and in conjunction, through high profile messaging in all forms of media including an informational website (http://cashlesslagoorg/).
  2. Implementing a cash processing fee: In Lagos State, from April 2012, all individuals and corporate (other than specified exemptions) have to pay a processing fee to their banks for cash deposits and withdrawals in excess of stated thresholds (NGN500,000 and NGN3m, respectively).  The fee ranges from 2% to 5% of the amount exceeding the threshold.
  3. Changes in how cash can be handled by banks:From 31 December 2011, only CBN licensed cash-in-transit companies are allowed to collect cash from clients in Lagos State, Federal Capital Territory (FCT), Port Harcourt, Kano and Ab
  4. Implementation of POS Guidelines from 2011: The CBN’s point-of-sale (POS) guidelines, published in 2011, have a broad impact across the structure of the payment card market, inter alia, (i) capping the maximum merchant service commission that acquirers can charge merchants at 1.25% or a maximum of NGN2,000; (ii) limiting the role of connecting and maintaining POS devices only to licensed Payment Terminal Service Providers (PTSPs); (iii) restricting the ability of merchants to charge customers for paying with  The POS guidelines apply nationally, but Lagos State has seen the biggest impact since most POS have been deployed there.  POS deployment targets were set at 40,000 by December 2011, 75,000 by June 2012 and 150,000 by December 2012.

The following aspects of the policy shall apply from January 1st 2012 in Lagos State (“tagged Cash-less Lagos”):

  • Only CIT licensed companies shall be allowed to provide cash pick-up services. Banks will cease cash in transit lodgment services rendered to merchant-customers in Lagos State from December 31st 2011. Any Bank that continues to offer cash in transit lodgment services to merchants shall be sanctioned.
  • 3rd party cheques above N150, 000 shall not be eligible for encashment over the counter. Value for such cheques shall be received through the clearing house.

The service charges/fees will not apply until March 30th, 2012, in order to give people time to migrate to electronic channels and experience the infrastructure that has been put in place. Therefore, banks should continue to encourage their customers to migrate to available electronic channels, and where possible demonstrate the costs that will accrue to those that continue to transact high volumes of cash from March 30th, 2012 in Lagos State.


The new cash policy was introduced for a number of key reasons, including:

  1. To drive development and modernization of our payment system in line with Nigeria’s vision 2020 goal of being amongst the top 20 economies by the year 2020. An efficient and modern payment system is positively correlated with economic development, and is a key enabler for economic growth.
  2. To reduce the cost of banking services (including cost of credit) and drive financial inclusion by providing more efficient transaction options and greater reach.
  3. To improve the effectiveness of monetary policy in managing inflation and driving economic growth.


Example of challenges resulting from high-cash usage (Not Exhaustive)

Robberies and cash-related crime

  • High cost of processing borne by every entity across the value chain (i.e. from CBN, to Banks, to the operating entities as well (e.g. staff required to process cash transactions, manual operating systems, etc))
  • Revenue leakage arising from significant handling of cash
  • Inefficient treasury management due to nature of cash processing
  • High cost of cash: There is a high cost of cash along the value chain – from the CBN & the banks, to corporations and traders; everyone bears the high costs associated with volume cash handling.
  • High risk of using cash: Cash encourages robberies and other cash-related crimes. It also can lead to financial loss in the case of fire and flooding incidents.
  • High subsidy: CBN analysis showed that only 10percent of daily banking transactions are above 150k, but the 10percent account for majority of the high value transactions. This suggests that the entire banking population subsidizes the costs that the tiny minority 10percent incur in terms of high cash usage.
  • Informal Economy: High cash usage results in a lot of money outside the formal economy, thus limiting the effectiveness of monetary policy in managing inflation and encouraging economic growth.
  • Inefficiency & Corruption: High cash usage enables corruption, leakages and money laundering, amongst other cash-related fraudulent activities.



A variety of benefits are expected to be derived by various stakeholders from an increased utilization of e-payment systems. These include:

  1. For Consumers: Increased convenience; more service options; reduced risk of cash-related crimes; cheaper access to (out-of-branch) banking services and access to credit.
  2. For Corporations: Faster access to capital; reduced revenue leakage; and reduced cash handling costs.
  3. For Government: Increased tax collections; greater financial inclusion; increased economic development. Increased tax collections; greater financial inclusion; increased economic development.


This study was carried out in UBA Plc Ugbowo 2 Branch Benin City where i interviewed the manager as regarding secured cashless banking.


However, the major problem encountered in this work is restrictions to source of information, financial constraints, and time factor were also not kind to the successfulness of this study.



  1. Cashless Economy:It is an economy without cash. it uses digital money instead ,transactions are made by digital devices such as mobile phones. it is business done without physical cash, except through digital.
  2. Mobile banking:A mobile banking is a system  that  allows customers of a financial institution to conduct a number of financial transactions through a mobile device such as a mobile phone or personal digital assistant.
  3. Economy:The wealth and resources of a country or region, especially in terms of the production and consumption of goods and services.
  4. Cashless policy:Is a principle or protocol to guides decisions and achieve rational outcomes.
  5. Tax:It is a financial charge or other levy imposed upon a tax payer(an individual or legal entity) by a state or the functional equivalent of a state such that failure to pay is punishable by law.
  6. Central Bank of Nigeria (CBN):The supreme monetary authority in Nigeria. It issues the Nigeria naira ,maintains foreign currency reserves and is changed with maintaining monetary stability.
  7. Cheques:A written order to a bank to pay a stated sum from the drawer’s account.
  8. POS:(point of sale) it is a place where a  retail transaction is completed. it is the point at which a customer makes a payment to the merchant in exchange for goods or services.
  9. Merchants:Someone who buys and sells goods especially in large amounts. A person who buys and sells commodities for profit; dealer, trader.
  10. World Bank:An international organization dedicated to providing, financing, advice and research to developing nations to aid their economic advancement.
  11. Micro browser: It is also called a mobile browser or mini -browser . It is a type of browser designed to be used on the small screens of many different types of mobile devices. it is commonly used on WAP based phones.
  12. Mobile devices:(Also known as handheld computer or  simply handheld)is a small, handheld….and apple are just a few examples of the  many manufacturers that produce these types of devices.