Until about four years ago, precisely January 2012, Nigeria was essentially a cash based economy. Then, the banks had to contend with high volume of transactions, which resulted in long queues at banking halls. The queues alone made banking difficult, to the extent that many Nigerians decided to remain unbanked.
However, with the introduction of cashless policy, which signaled the adoption of electronic banking, through Automated Teller Machine (ATM), Point of sale (POS) and others, the Central Bank of Nigeria (CBN) intended to bring banking hall and banking services close to the people, even in the comfort of their homes.
With the cashless policy, there were expectations of improved security, as it was intended to discourage movement of cash, and reduce traffic at the banking halls.
The policy has however not met these expectations, as queues refused to disappear. Some customers complained that the policy has limited their cash transactions, no matter the type of electronic transaction they use.
But competition in Nigerian banking sector has become intense, partly due to regulatory imperatives of universal banking and also due to customers’ awareness of their rights. Bank customers have become increasingly demanding; they require high quality, low priced, immediate service delivery and improved value from their chosen banks.
And in the face of all these complaints, some continue to shy away from all forms of electronic banking, like ATM, that are devoid of queue.
Findings show that queues have returned in banks where facilities are limited and cannot meet up with demand. Not too many bank customers can withstand the queues, yet they are reluctant to fully embrace the cashless policy.
CASHLESS NIGERIA
The Central Bank of Nigeria (CBN) under the leadership of Mallam Sanusi Lamido Sanusi (now the Emir of Kano) introduced a policy on cash-based transactions which