Telecom sector key to cashless policy achievement

In this interview, Regha highlights the new robust telecom networks to support the nationwide application of the scheme.You have been going round the states sensitising Nigerians on the cashless 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  […]

In this interview, Regha highlights the new robust telecom networks to support the nationwide application of the scheme.
You have been going round the states sensitising Nigerians on the cashless 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 CBN to sensitise Nigerians for the cashless scheme. As a strategic partner in the scheme right from 2011, we visited traditional rulers, went to the markets, met with the traders, market men and women, we went to trade associations such as vulcanisers, marketers, food dealers, wood dealers, motor and motorcycle parks to sensitise and mobilise them for the cashless policy that commenced   nationwide in July 1. 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 withdraw the money and then, you are putting a restriction on how much they can withdraw, that’s not fair. They wonder 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. 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 point of view of 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 that hey now began to understand how they can enjoy the benefits of cashless economy. They are so excited that they could do mobile banking.  
 How did you let them know what mobile banking is all about?
In most cases, we found that about 50 per cent were aware that there is mobile banking or mobile payment but they really 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.
What do you consider as challenges preventing mobile money operators in providing services to Nigerians?
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 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 as 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) will you say can discourage people from embracing the 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, such as 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 them is that, on no account should they disclose their PINs to anybody.  Regarding the fear they expressed on what happens if they lose their phones, especially if they are using mobile money, 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 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 would continue to emphasise the benefits inherent in electronic transactions and why its usage should be based on its convenience and not by compulsion.