The Future of Consumer Payments in Nigeria: An Evaluation of the
E-Payment System Vision-2020 of the Nigerian Government and the Nation’s Banking Sector
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Full Text |
Pdf |
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Author |
Richard Aborisade
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ISSN |
2079-8407 |
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On Pages
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220-229
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Volume No. |
5
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Issue No. |
3
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Issue Date |
April 1, 2014 |
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Publishing Date |
April 1, 2014 |
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Keywords |
E-payment system, Cashless economy, Nigerian government, Banking Sector, FSS Vision 2020.
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Abstract
The quest of the Federal Government of Nigeria to implement policies that will evolve a change from the traditional payment system into a new electronic payment method, which will place the nation at par with the trends of international best practices and standards, using modern technologies have been confronted with daunting challenges. These challenges have cast a great shadow on the prospect of the nation transforming into a ‘cashless’ economy by the year 2020 as contained in the Nigerian government’s blueprints for economic development tagged-Vision 2020. Questions that borders on the country’s preparedness and possession of the logistic and technological wherewithal to successfully facilitate such systemic revolution have been raised. Using a triangulation of both quantitative and qualitative methods of data collection, this study critically evaluated the payment system vision 2020 policy of the Nigerian government. The study examined the operational factors that would determine the success of the Nigerian banking sector in facilitating the evolution of the payment system, accessed the awareness, perception and attitude of the Nigerian banking public to the introduction of the new payment regime and explored the prospects and challenges of the government’s initiative. The financial system strategies of the government were found to hold appreciable prospects for the development of the nation’s economy; however, the implementation of the e-payment system lacks basic infrastructures needed to facilitate such systemic transition. Lack of political will, security, trust, legal framework, high illiteracy rate, low power supply and socio-cultural inhibitors were important factors that influenced the negative disposition of the banking public to the ‘vision’. Therefore, a review of the e-payment policy, provision of necessary infrastructures and fortification of the country’s cyberspace were suggested.
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