CBN says reduction of cash-based transactions by 2025 will foster cashless economy

By Chisom Nwatu

The Central Bank of Nigeria (CBN) has said the use of cash payment will naturally reduce by 2025 as the new naira notes circulate in the economy.

The apex bank disclosed this in its Payments Vision 2025 document, saying that by 2025 the country aspires to have a cashless and efficient electronic payment system infrastructure that would facilitate financial services in all the sectors of the economy.

According to the CBN document, the Nigerian payment landscape has many options that have displaced cash in recent times, including electronic bill payment, mobile phone top-up, and mobile and instant payments.

“The use of cash will naturally slow with the ‘mobile first generation’, which will be economically active by 2025, hence one of the focuses of the PSV 2025 is enhancing the cashless policy of the CBN,” the document stated.

“As we implement the PSV 2025 agenda, the CBN will continue to ensure that the Nigerian payments system is widely utilised domestically, supports government’s financial inclusion objectives, and meets international standards while contributing to overall national economic growth and development of Nigeria,” the apex bank said.

The bank also noted that PSV 2025 will focus on the attention of critical stakeholders on contemporary developments that will “drive digital innovations and payment in the future, such as contactless payments, big data, and open banking.”

Charging all stakeholders to support the bank in executing initiatives under the PSV 2025 towards fostering an efficient and secure payments system, the bank said it would ensure a secure, reliable, and user-centric financial solution in compliance with international standards.