Thursday, August 4, 2011
[size=14pt]FG cashless economy project to begin in Lagos[/size]

Ihuoma Chiedozie, Abuja


The cashless economy being proposed by the Central Bank of Nigeria would begin in Lagos State, the Federal Executive Council announced on Wednesday.



http://www.punchng.com/Articl.aspx?theartic=Art201108042263137


The Minister of Information, Mr. Labaran Maku, stated this to journalists after the FEC met in the Council Chambers of the State House, Abuja, where the Governor of the Central Bank of Nigeria, Mr. Lamido Sanusi, made a presentation on the state of the economy.

Maku, however, did not state the exact time when the cashless policy would commence.

He, however, noted that in line with the plan, the Lagos State Government was expected to immediately start using e-banking services.

He said, "The CBN has decided to start the cashless economy in Lagos, using Lagos as the hub, and has taken up partnership with the governor of Lagos State.

"In a few months to come, Lagos will move swiftly into e-banking and there is also the initiative to introduce mobile banking across the country."

The proposed mobile banking system, he said, would cut the cost of running banks by about 30 per cent.

The CBN governor reported that the rescued banks had until September 30 to recapitalise.

Shedding further light on the CBN report on the state of the economy, Maku said it had so far grown by 6.4 per cent in 2011.

"The CBN report stated that the economy had grown at the rate of 6.4 per cent and overall growth projection for this year was put at 7.8 per cent," the minister said.

A breakdown of the report, which suggested that the country's economy was performing very well, showed that real Gross Domestic Product growth was estimated at 7.4 per cent and 7.93 per cent for the first and second quarters of 2011 respectively, with the oil sector growing at 2.90 per cent and 3.4 per cent within the period.

Non-oil sector growth was estimated at 8.46 per cent and 8.77 per cent for the first and second quarters respectively.

The report said the non-oil sector growth was largely driven by agriculture, wholesale and retail trade, and services, which contributed 1.92, 2.13 and 2.39 percentage points respectively.

Also, the CBN reported that spot price of Nigeria's reference crude oil, Bonny Light, rose from $93.37 per barrel at the end of December 2010 to $118.99 in the first quarter and $116.66 in the second quarter of 2011.

Unlike western countries, We start tests where the effect will be most catastrophic if the idea fails. Why not start with rural states in case it fails so that its effect will not be drastic?.
How we reason sometimes baffle me or is this a Northern conspiracy to ruin the Lagos economy?.

Aloy,

I like your opinion to the news.

Anytime you mechanize a process there has to be an efficiency factor to attribute the success to. In the same light, there will be a cost savings. The cost savings are realized as lay offs. In other words, the e-machines make the human hands redundant and dispensable.

Now, I thought people of Nairaland said Sanusi is not smart?

This guy will open three branches of islamic bank in Northern sttates and provide employment for Northerners but here he is launching a program that will lay of Westerners from their jobs.

Who is not smart, the graduate of Islamic studies or the holders of doctorate degrees in Economics and finance?

[size=14pt]FG approves Lagos for test run of cashless banking[/size]
August 4, 2011 02:45PM



The Federal Executive Council (FEC) on Wednesday endorsed the proposal by the Central Bank of Nigeria (CBN) to use Lagos State as a test case for the e-banking and cashless economy projects, the Minister of Information, Labaran Maku, said at the end of the meeting held at the State House.

He said this followed a briefing by the Central Bank Governor, Lamidi Sanusi and his team, on the overview of the country's economy in the past two quarters and to discuss the new initiatives taken by the apex bank in reforming the economy.

Mr Maku said the FEC gave its approval because of its multidimensional advantages, particularly, in reducing the running costs of banks by almost 30 per cent and affording every Nigerian the opportunity of a direct participation in the financial sector.
"We discussed new initiatives the bank is taking to reform the economy," he said. "CBN has decided to start the cashless economy in Lagos, using Lagos as the hub in partnership with the Governor of Lagos state and, in few months to come, Lagos will move swiftly into e-banking and there is also the initiative to introduce mobile banking across the country so that, with our telecoms, we can use them to open our bank account, transfer money, receive payment or withdrawals. It will help reduce cost of running banks by 30 percent and this initiative is very good for the economy so that even people in rural areas can participate in the financial sector.''
The CBN proposal aims at limiting cash withdrawals and deposits with banks, with a ceiling of N150, 000 and N1m on free cash withdrawals and lodgments by individual and corporate customers.

Mr. Labaran also said the CBN team told the Council that the economy is on the right path, with the growth rate of 6.4 per cent in the first quarter and the overall growth put at 7.8 per cent.

Standards for education

On the inflationary movement, Mr Labaran said the CBN reports stated that headline inflation in the first and second quarters of the year stood at 12.8 percent.
"Generally, the inflation trend has been coming downward, which is very good for the economy and we got the assurance from the CBN that it will continue to
maintain those policies that have stabilized inflation,'' he said.
The Minister also said the CBN team also reported to Council the upward progression witnessed in crude oil production, which has gone up to 2.4 million barrels per day which was attributed mainly to the peace in the Niger Delta region.
In a related development, the minister said Council gave the approval to Federal Ministry of Education to forward an Executive Bill to the National Assembly for an Act for the amendment of Education National Minimum Standard and Establishment of Institution Act and other Related Matters.
The Bill, if passed, will empower the National University Commission to handle cases of proliferation of illegal universities and prescribe punishment for those who violate minimum quality standard for the establishment of Universities and Courses.

http://234next.com/csp/cms/sites/Next/Home/5737639-146/fg_approves_lagos_for_test_run.csp

^^^
you really correct/

jmaine:

Inasmuch as i don't fully support our plunge into this due to the glaring lack of infrastructure to sustain this amiable transition by making it stress and risk free . . .I still feel Lagos State is good place to start due to the following . . .

(1) The robust business clime and tremendous cash flow in the state will avail the CBN the opportunity to observe if their set objective will will yield positive or negative feedback . . .

(2) The population and size of Lagos as well will provide a good statistical indices to assess the feedback response to this new rule . .

(3) Lagos is a mini version of Nigeria with lots of cultural and ethnic diversity . . .this unique feature could also be used to predict how this policy will affect the economies of regions or states with a dominant ethnic tribe and a means of livelihood . . .

(4) Lagos state arguably has the best IT infrastructural base and spread in the country . . .and such is a requisite for a test run of this policy

Totally correct. Let us not forget that Fashola, ever the progressive, is fully partnering this CBN initiative. We will read the usual conspiracy theories on this thread but folks should remember that Fashola has proven he loves his State and is devoted to moving Lagos forward. He will not be an eager partner in this if he has not worked out that this is good for Lagos.

jmaine:

Inasmuch as i don't fully support our plunge into this due to the glaring lack of infrastructure to sustain this amiable transition by making it stress and risk free . . .I still feel Lagos State is good place to start due to the following . . .

(1) The robust business clime and tremendous cash flow in the state will avail the CBN the opportunity to observe if their set objective will will yield positive or negative feedback . . .

(2) The population and size of Lagos as well will provide a good statistical indices to assess the feedback response to this new rule . .

(3) Lagos is a mini version of Nigeria with lots of cultural and ethnic diversity . . .this unique feature could also be used to predict how this policy will affect the economies of regions or states with a dominant ethnic tribe and a means of livelihood . . .

(4) Lagos state arguably has the best IT infrastructural base and spread in the country . . .and such is a requisite for a test run of this policy

Lagos state is the hub of Nigeria's economy and if it fails, the economy collapses. Testing any sort of idea with Lagos state is totally wrong because any adverse effect will be disastrous to the nation's economy. Your reason #3 beats me because I don't know how it is important in running a cashless economy.

Is there any sign that people are really getting ready for this?

If Kenya can operate a cashless economy why cant Nigeria.

Don't you need uninterrupted power supply to make this work?


"The CBN proposal aims at limiting cash withdrawals and deposits with banks, with a ceiling of N150, 000 and N1m on free cash withdrawals and lodgments by individual and corporate customers."


The above proposal may pose a huge problem for people in the informal sector of the economy, which is basically the majority of people in Lagos.
This proposal alone may encourage more people to hold on to their cash.

Aigbofa:

Don't you need uninterrupted power supply to make this work?


"The CBN proposal aims at limiting cash withdrawals and deposits with banks, with a ceiling of N150, 000 and N1m on free cash withdrawals and lodgments by individual and corporate customers."


The above proposal may pose a huge problem for people in the informal sector of the economy, which is basically the majority of people in Lagos.
This proposal alone may encourage more people to hold on to their cash.

Yes. Power is needed for the POS terminals. Besides, the alternative to cash (POS terminals) will also cost money.

The only thing that this stupid idea demonstrates is that President Jonathan and his entire crew of Ministers are big dunces.

I am now no longer supporting this federal government of buffoons, who don't understand that without wired telecoms, you only stand to kill the economy of a city like Lagos with this stupid policy.

I now have no choice but to agree with the ACN hacks here and elsewhere, that Goodluck Jonathan is just as tribalistic as Yar'Adua before him. He doesn't care what happens to Lagos and the Yorubas, but cares deeply enough about his own state to remove the incompetent Sylva, who, frankly, is beginning to look more competent than Jonathan himself.

It is a sad day for Lagos today. Many Lagosians, including Fashola, will come to remember this day in deep regret, as the day that the Nigerian dream died. It will be buried later, but unless this decision is reversed, the economy of Lagos will die, and Nigeria's along with it. People will fight, as desperation and hunger set it. As for me and mine, the time has come to leave Nigeria. Our rulers have gone mad. Again.


Kai!! Why did we allow Obasanjo to leave??

hmm