What is Nigeria’s Cashless Policy?
Over the past couple of years, Nigerians have slowly, but gradually drifted towards a cashless economy. From payment of utility bills to booking flight tickets, many transactions today are conducted with the use of mobile money apps rather than cash: as long as there is mobile data available, payment for goods and services can be made from any location. With Paga, you can also perform transaction offline. The days of carrying huge bundles of cash to the bank to conduct transactions are well and truly behind us.
In 2020, the Central Bank of Nigeria (CBN) announced that charges on cash deposits over N500,000 (for individuals) and N3 million would be implemented nationwide effective from Wednesday, April 1st, 2020. The new policy on cash-based transactions in banks, aims at reducing the amount of physical cash (coins and notes) circulating in the economy, and encouraging more electronic-based transactions (payments for goods, services, transfers, etc.) According to CBN, the new cash policy was introduced for a number of key reasons:
– To drive development and modernisation of payment systems in line with Nigeria’s vision 2020 goal of being amongst the top 20 economies by the year 2020.
– An efficient and modern payment system is positively correlated with economic development, and is a key enabler for economic growth.
– To reduce the cost of banking services (including cost of credit) and drive financial inclusion by providing more efficient transaction options and greater reach.
– To improve the effectiveness of monetary policy in managing inflation and driving economic growth.
With the way the world is rapidly advancing, anyone sticking to only cash transactions would look like they are still in the Stone Age. This is one of the reasons why it is necessary to fully embrace e-wallets, like Paga. Furthermore, there is an increased level of safety when transactions are conducted online: carrying a huge bag full of cash just to complete a payment of N1 million for a product or service puts you at risk of being robbed, and no one wants to be dispossessed of their hard-earned money. In addition, it’s a lot easier to go about your daily business when you switch to cashless transactions: you no longer have to step out into the sun just to pay utility bills or buy airtime.
It has taken a while, but Nigerians have finally embraced a cashless economy, mainly because of its convenience: people no longer have to walk into banking halls every time and endure the inconvenience of queuing for hours. Also, the world is operating what can be called a ‘digital economy’, and it’s necessary for Nigerians to move with the times. Most businesses are now accessible online, it’s a lot easier to purchase products by just pushing a few buttons, and who doesn’t enjoy a smoother process of doing things?
One of the ways through which Nigerians are navigating this cashless economy is by the use of digital payment platforms. In recent times, a number of payment solutions have distinguished themselves and stood out as reliable vehicles for online transactions, one of which is Paga. Launched in 2009, it is a leading mobile money company that has created an ecosystem which enables people to send money and receive money online with as much convenience as possible. With Paga, it’s easy to send money, request money, pay bills, get remittances from abroad, and top up airtime and data.
How to Open A Paga Account
Opening a Paga account is pretty easy. To get started, click here to download the Paga app on your device, then click on ‘Sign Up’, and follow the instructions from there.
How to Become A Paga Agent
You can also register on Paga as an agent. This means that you will be operating Paga as a business where you make use of a POS machine to process financial transactions for customers. Agent sign-up fee is N20,000. As a Paga agent, you will receive a commission for every transaction you perform, plus bonuses and other incentives which Paga rolls out at intervals. To get started, simply send an email to firstname.lastname@example.org.