#CashlessAfrica: Robust Telecom Networks, Awareness Key to Cashless Scheme –Regha
Jun 26, 2014 Smart Executives 282 views


Mrs. Onajite Regha is the Executive Secretary and Chief Executive Officer of the E-Payment Providers Association of Nigeria, E-PPAN, engaged by the Central Bank of Nigeria to sensitise and mobilise Nigerians on the nitty-gritty of cashless economy initiative, which is going nationwide starting from next month. In this interview with KUNLE AZEEZ, she chronicles her team’s experiences in the states already covered with a call for robust telecom networks to support the nationwide application of the scheme. Excerpts:

You have been going round states sensitising Nigerians on the cashless economy policy. Can you relay your experiences in those areas already covered?

We have toured three senatorial districts in three states, Delta, Imo and Bayelsa as part of the mandate given to us by the Central Bank of Nigeria to sensitise Nigerians for the cashless scheme, as a strategic partner in the scheme right from the outside in 2011. We visited traditional rulers, we went to the markets as usually, we met with the traders of the markets, we met with the market men and women, we went to trade associations such as vulcanizers, marketers, food dealers, wood dealers, motor and motorcycle parks and just as we did in the first round. The objective of our exercise is to sensitise and mobilise them for the cashless policy that is going to take off nationwide in July 1, 2014.

So, a lot of them – about 10 per cent of people in the three states – have heard about the policy before and many of them felt the policy does not affect them as many of them said they were not even doing as much as a daily withdrawal limit of N500, 000 as set by the CBN. So, they tell you ‘how does that concern me? In a day, do I sell up to N10, 000?’ Then, the people who felt concerned were very upset about the policy, as they perceived it as a punishment. The example of this is the timber association in Sapele. The timber dealer said, ‘We’re just planning to bank with you people and then you want to punish us for putting our money in the bank. We would go back to our old ways. We would not keep any money in the banks’. They called the policy a punishment because, according to them, if they put the money in the bank account and they want to withdrawal the money and then, you are putting a restriction on how much they can withdraw attempt to withdraw above that threshold is attracting charges. They wondered why the banks would be charging them if they want to withdraw the money when they were lured into keeping the money with the banks in the first instance!

What do you think was responsible for the kind of perception they had about cashless policy?

Well, I can tell you that it was because they did not associate themselves with the benefits of going cashless. Indeed, the biggest benefit for the cashless policy is the convenience for the users. It is convenient and safe. But we also tried to find out from them, the security challenges that go with carrying cash and indeed, a lot of them confessed that they experienced terrible situations. For instance, we found that they experienced armed robbery, theft and huge losses. As they ferry timbers from one location to another and carry cash with them, they often get attacked by sea pirates, who snatch the money they are carrying from them. So, they have a lot of challenges in dealing with cash really.

But before we went out there, they hadn’t looked at the policy from the benefits to them. So, they had to start thinking and planning how they can use even traditional means to protect themselves. They mentioned the issue of how they were planning to use ‘traditional means’ to protect their money. Also, a lot of people that we met didn’t have bank accounts and why? It is because they have apathy towards banks and many of them have had issues with microfinance banks. But now, we are telling them that with these electronic channels, they really didn’t have to go to the banks and be intimidated by the big buildings, by the English-speaking tellers and receptionists; we told them that with their phones, Automated Teller Machines, ATMs, beside their house and Point of Sales terminals, they could actually and conveniently do banking from wherever they are. IT was at this point they now began to understand how the benefits of cashless economy relate to them and not to the government and they were also excited that they could do mobile banking.

What kind of enlightenment did you provide for them to let them know what mobile banking is all about?

We also tried to ask them to know how many of the people were aware about mobile banking and in most cases, we found that about 50 per cent were aware that there is mobile banking or mobile payment but they didn’t know what we were talking about as they took it to mean the act of sending recharge card PINs from one person to another. For them, that was mobile payment. So, we had to to explain to them about what mobile payment really is.

What do you consider as challenges preventing mobile money operators to provide services to the people in Nigeria?

The major one is the lack of agent network. We noted that we didn’t have sufficient agency network in those areas. The agency network that we have been complaining about is also a challenge because when we introduced mobile payment, we found readiness to adopt it but we found that we don’t have agents around. In some locations, licensed mobile payment operators were with us and they quickly signed up agents but in some other locations, they couldn’t deploy agents because it did not make business sense to them to respond swiftly. As a result, E-PPAN has found that we need even a national mobile network carrier that provides network to the mobile money operators and we have started discussion with Globacom. We have opened discussion with Glo so that these mobile money operators can connect to its network to offer the services.

This is because having a robust telecoms networks and matched with continuous awareness campaign are very important to the cashless policy implementation. We are still looking at how we can leverage those platforms such NIPOST offices that already exist throughout Nigeria so that we can witness a rapid increase in the adoption of electronic payment through mobile money.

What other challenge(s) do you find as capable of discouraging people from wanting to embrace cashless scheme?

Another challenge people have is the fear of fraud; the fear of losing their phones and fear of ATM fraud. As a matter of fact, using a random sampling, we found that many people share their PINs on the basis of supposed ‘trust’ they said they had on the people they share their PINs with including wives, husbands, children, maids, business associates and so on. We now opened their eyes to the import of what they were doing. So, they now understand how important it is to keep their PINs. Going round, we used the opportunity also to do fraud awareness and campaign and one very important message we are trying to pass across to is that, on no account should they disclose their PINs to anybody and we hope that by now, they would keep to this going forward. Regarding the fear the fear expressed on what happens if they lose their phones, especially if they are using mobile money, but we enlightened them that, in the case of loss of phone, their electric value on the money is not lost. We also passed the message to the people that the CBN has set up a Consumer Protection Department really dedicated especially to the Cashless Nigeria and the department operates 24 hours a day and seven days a week.

We let them know that if they have any complaints, their banks have 72 hours to respond to them in a way that is satisfactory to them. This is because the apex bank has learnt that not resolving customers’ complaints on time could lead to a kind of discouragement from using electronic platforms. As we continue with the rest of the states we need to cover for the sensitisation, we would continue to emphasise the benefits inherent in electronic transactions adoption and why its usage should be based on its convenience and not by compulsion.

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