Expert Advocates SMEs’ Integration Into Cashless Economy

With over 40 million Small and Medium Enterprises(SMEs) contributing nearly 50 per cent of Nigeria’s economy, there is an urgent need for SMEs to be fully integrated into the cashless economy drive projected by the government and Central Bank of Nigeria(CBN), an author and Former executive director, UAC Plc, Dr. Joe Dada had said. 

He made this disclosure at the round table event and unveiling of his book launch titled ‘Cashless Economy: Evolution and Execution in Nigeria’ while making a comparative review of selected countries like Sweden and Norway that has made a success of the cashless policy which had brought to the minimal cash transaction with less than 3 percent of transactions made in cash. 

“Over the years, I started monitoring the economy that was quite going cashless and top of the rank was Sweden and Norway but I was more interested in the developing world because Nigeria for me is the most important of them all. 

“Kenya was an interesting story as what they have done made me realise that whatever we do, cash is the blood of the economy. If you do not have cash your GDP is calculated by value addition which is engendered by cash that is why Nigeria can only accelerate its level of development through product and service to grow the economy”, he said. 

Dr. Dada stated that, according to the World Bank, Nigeria’s GDP, which is projected to hit 3.5 percent in 2023 would only be at 2.8 per cent at the end of the year, hence, the need for journey that can transform Nigeria’s economy which will make the economy grow. 

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He said, though, the cashless policy was designed in 2012, the introduction of the cashless policy by the federal government and CBN last year was hasty and resorted to the loss of lives and businesses. 

While affirming that, to make a success of the cashless economy, the CBN needs to reduce its intervention policies and focus on its operational task which has suffered for a while, he urged the apex bank to also set a target of when the cashless policies will fully come into effect. 

The backbone technology, he stressed, also needs to evolve to be able to cater to the demands for a seamless operation due to the digital/technology drivers lacking the backup it needs for the population.  

While the technology to back up transaction security is of utmost concern to stakeholders, he suggested that, sustainability of policies with monitoring and public enlightenment and introduction of the eNaira as a way of addressing inflation and cutting down the cost of currency printing.