Financial System Strategy
2020
LOCAL CONTENT DEVELOPMENT IN NIGERIA CASHLESS POLICY:
AN FSS2020 PMO PERSPECTIVE
PRESENTED AT e-NIGERIA 2013 ANNUAL SUMMIT HELD AT SHEHU MUSA YAR ADUA
CENTRE, ABUJA
BY
HEAD FSS2020 PMO
DECEMBER 3-5, 2013
1
FSS 2020
OUTLINE OF PRESENTATION
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OVERVIEW OF FSS2020
-Background Story
-Vision and Mission
FSS2020 ICT SECTOR STRATEGY
-Vision
-Mission
-Strategic Objectives
-Accomplishments
-Strategy Review and Execution Framework
PAYMENTS SYSTEM
-Cashless Policy
- Local Content Initiative
Conclusion
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FSS2020 Take-off Story
 Quick Overview of Banking Reforms
– 2004 Consolidation Program
– 2009 New Banking Agenda
FSS 2020
 Enhancing the quality of Banks through industry
remedial programs
 Establishing financial stability by stemming wide
fluctuations in key micro-economic indicators
 Enabling healthy financial sector evolution
 Enhancing financial sectors contribution to the growth
of the real sector appropriately
 2003 Emergence of BRIC countries
 Goldman Sachs 2005 prediction of Next 11
 Comparison of Nigeria and Egypt as Africa’s candidate
in N-11
 Other countries in N-11 at a glance.
 Nigeria & Egypt among emerging markets
Slide 3
FSS 2020
Goldman Sachs Predictions
 Highlight of Goldman Sachs prediction in 2001
The choice of emerging markets as the geographical dimension was influenced by,
amongst other factors, Goldman Sachs' assertion that Nigeria could be
placed among the 'next 11' after Brazil, Russia, India and China
(BRIC) by 2025. Based on this premise, the vision to be one of the leading
emerging market countries by 2020 was adopted
 Requirement for attaining prediction
• Increased attention to reform (Economic, Structural, Political
and governance)
• Greater integration into world trade and finance
• Increased commitment to Education and Capacity Building
• Improved infrastructure building and upgrade
• Create industrial economy and eliminate over dependence on
oil, etc
• Extend frontiers of Corporate Governance
• Work to reduce/eliminate corruption
Slide 4
FSS2020 Revised Strategic Destination:
Our Vision- (Refined Strategic Destination):By 20, to be the safest and most diversified
financial system among emerging markets, supporting the real economy
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By 2020, to be the safest and most diversified financial system
among emerging markets, supporting the real economy
FSS 2020
Key Elements of the Vision
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“Safest – The Nigerian financial system will be modeled to provide
unparalleled safety, in order to mitigate the perception usually
associated with emerging economies. Our financial system will be reconfigured with shock-recovery capabilities and sensitivity”
 “Emerging markets – We intend to conquer and use the key
emerging markets as our initial benchmark. Emerging markets will be
as defined by World Bank and IMF e.g. the BRICs”
Our Mission
“To drive rapid and sustainable economic growth primarily in Nigeria and
Africa”
Slide 5
Reasons and Rationale of FSS2020
FSS 2020
 Why FSS 2020 ?
– Need to sustain the macroeconomic stability
– Need to deepen the Banking and Financial system beginning with
clear understanding of the concept of money and money as a
legal tender currency
– Evolving appropriate regulations and laws to power the new
economy
– Create new avenues for the funding of critical infrastructure such
as power, roads, telecommunication, water supply and
distribution, etc.
– Addressing the shortage of qualified and experienced manpower
– Enhancing corporate governance regime across the financial
system etc.
– Need to stem growing corruption at all levels by all means
Slide 6
FSS2020 AND NV20:2020
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NATIONAL VISION 20:2020
The Strategic Objectives of FSS2020
are as follows-
The Strategic Objectives of NV20:2020
are as follows-
Strengthen and deepen the
domestic financial market
Integration of the domestic
financial market with the
external financial market
Promote sustainable economic
development
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FSS 2020
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FSS2020
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Optimizing Key sources of
economic growth
Guaranteeing the productivity
and well being of the people.
Fostering Sustainable social
and economic development.
FSS 2020
BACKGROUND-MEMBERSHIP OF FSS2020 ICT COMTTE
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The membership of the Committee came from the following institutions:
Nigerian Computer Society
Nigerian Communications Commission
National Information Technology Development Agency(NITDA)
Nigeria e-Government Strategy, NeGSt
Office of the SGF (National Identity Card Project)
Galaxy Backbone
CSCS
Ministry of Planning
Microsoft
Nextzon
Price WaterhouseCoopers (PWC)
SWIFT
Guaranty Trust Bank
Zenith Bank
International Finance Corporation
Central Bank of Nigeria
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BACKGROUND:CO-OPTED MEMBERS
In the course of the meetings of the Committee, membership
of the body was enlarged to include representatives of the
following institutions:
Nigeria Inter-Bank Settlement System (NIBSS)
Nigeria Postal Service (NIPOST)
Internet Exchange Point of Nigeria, IXPN
Office of National Security Adviser, ONSA
FSS 2020
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VISION
The Information and Communications Technology’s vision is
borne out of the need to use ICT as an enabler to drive the
successful implementation of the Financial System Strategy
(FSS2020) vision and objectives.
FSS 2020
 VISION: ‘To
Make Financial Services
Available to Everyone, Everytime,
Everywhere’.
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MISSION
In order to make financial services available to everyone,
everytime and everywhere, ICT must be used to provide the
enabling environment. The ICT mission which will support the
achievement of the ICT vision is therefore:
FSS 2020
 MISSION: ‘To
use Technology to Develop
and Support an Accessible, Secure,
Reliable, Affordable and Collaborative
Financial System
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Key Elements of the Vision and Mission
Accessibility: user-friendly and easy to use
Security: safety and secured transactions
Reliability: up and running all the time
Affordability: cost affordable by both lowincome and high-income earners.
 Community: financial services available to
all no matter where they are-rural or urban
location.
FSS 2020
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FSS2020 ICT OBJECTIVES
*
- Create legal and regulatory framework for electronic business
transactions.
- Develop frameworks, guidelines and standards to enable ITdriven/based reporting, compliance monitoring and risk management.
FSS 2020
- Develop a future-proof technology infrastructure to make financial
services available nationwide (special attention on non-bank individuals
and rural communities).
- Design and implement a robust security framework and operational
infrastructure.
- Establish a framework for adapting internationally accepted standards to
meet local needs for information sharing and interoperability.
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OBJECTIVES CONTINUED
- Implement e-Governance to provide public service online (eGovernance).
- Develop an online ‘virtual data warehouse’ that dynamically
collates information from different systems that are within and
outside the FSI (Financial Services Industry) and presents the
gathered information in a user-friendly format.
FSS 2020
- Develop a robust Research and Development Service for ICT
utilization in the Economy.
- Build Human Capacity and sustained awareness for ICT
Utilization.
For each strategic objective the Committee has developed the
Strategic Initiatives, Deliverables, Dependencies, Action steps,
Process Owners, Support Process Owners, and Timelines.
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FSS 2020
BACKGROUND:ACCOMPLISHMENTS
*Reviewed the strategy blueprint for ICT
*Took presentations from the following relevant organisations:
-National Institute for Technology Development Agency (NITDA):’ICT
for Development-Strategic Action Plan; New National IT Policy.
 -National eGovernment Strategies (NeGST): ‘Nigeria e-Government InterOperability Framework’.
-Nigerian Communication Commission (NCC)-’National
Telecommunication Policy’.
- National Identity Management Commission (NIMC):’Nigeria’s Identity
Management Experience and the Reform Initiatives’.
- Internet Exchange Point of Nigeria (IXPN):
i. ‘IXPN: Concept, Design, Infrastructure and Benefits’.
ii. ‘Leveraging on the Nigerian Internet Exchange Point to Catapult
the Integrated System Services Network (FISSNET)’.
- National Planning Commission (NPC): ‘Nigeria Vision 2020: The Role of
ICT’.
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Accomplishments (Cont’d)
 * Had joint meetings with Legal Sub-Committee for the ICT Legal
Requirements.
* Developed FSS2020 portal for information sharing among members.
FSS2020 PORTAL:- www.fss2020.gov.ng
FSS 2020
* Identified the need for the immediate deployment of the National
Internet Exchange to keep local traffic local, reduce internet access cost,
enhance and improve local internet activities.
* Established Strategic Objectives for FSS2020 as listed in the
Implementation Plan.
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FSS2020 ICT QUICK-WIN INITIATIVES
FSS 2020
The Committee, through the technical sub-committee, deliberated
and adopted the following quick-win initiates for ICT
Implementation:
 e-Transaction Bill
 PKI- Public Key Infrastructure
 IXPN- Internet everywhere
 NIMC- National Identity management for all stakeholders
 Standards and Inter-Operability
 Enterprise Programme Management, ePMO
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Critical Success Factors
Government Support
Collaboration between public and private sectors
Risk Management
Interoperability and Standards Framework
Communications Infrastructure
Skilled IT staff
Legal and Regulatory Framework
FSS 2020
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An ongoing initiative
TP22
Design & Implement an Interoperability Framework
Implementation
Model
NITDA
Budget
(NGN)
Implementing Institution
Lead with a cross sector
working team
Start date
Develop & implement a national financial & non-financial interoperability framework.
Interoperability is the capability of systems or units to provide and receive services and
information between each other, and to use the services and information exchanged to
operate effectively together in predictable ways without significant user intervention. This will
involve standards for Data, Communication, Business Process , Infrastructure , Messaging,
User Experience , Security & Identity/Access Management.
Leverage on the EU Inter-operability framework and the Bankers Committee standards
programme which is currently ongoing.
• Ease of Integration
• Effective Information Sharing &
Exchange
• Enables Management of Systems &
Services
• Increased Operational Efficiency
RISKS
BENEFITS
DESCRIPTION
Owner
FSS PMO Contact – Sani
TBD
2013
Spend to date
(NGN)
End Date
tbc
2016
STRATEGIC OBJECTIVES IMPACTED
E2
Integrated and linked IT systems
• Change of leadership
• Political Resistance
• Technical Capacity
CODE
MEASURE NAME
• Please
define
Level of compliance
to standards
BASELINE
TARGET
the programme
N/A
70% compliance
FSS2020 PMO, SWIFT, Accenture, IBM/Oracle,
NCS, Galaxy Backbone, Ministry of Communication
& Information Technology, NITDA, NCC, IXPN
{List the names of the individuals that form the
implementation team}
HIGH LEVEL PLAN
FSS 2020
VALUE GAP
PROGRAMME IMPLEMENTATION TEAM
2014
Design framework
2016
2015
Platform Design and Development
Test & Refine
Engagement and Consultation
Slide 19
Roll Out
NEW PROGRAMME
TP23
Design & Build a Financial System Cloud
CBN (Bankers
Committee)
TBD
Start date
2013
• Reduce costs of internet access
• Increase security
• Uninterrupted 24/7 service
• Uniform customer experience
VALUE GAP
Spend to date
(NGN)
End Date
2016
STRATEGIC OBJECTIVES IMPACTED
Starting with the Banking Sector - Design & build a financial system cloud that is accessible
and affordable by all Nigerians. This will reduce the costs incurred by customers and drive
universal access. The aim is to provide the platform for effective, efficient and secure internet
access so that all service providers (exchange points, ISPs, data centres, shared services,
financial market utilities, etc) work within a well specified and resourced network. It aims to
leverage improved bandwidth and mobile technology to ensure low-cost customer access and
cost-effective service delivery, keeping most internet traffic local and very safe.
CODE
E2
Integrated and linked IT systems
• Political Resistance
• Dominance/Exclusivity – Monopoly
• Infrastructure vulnerability
MEASURE NAME
BASELINE
PROGRAMME IMPLEMENTATION TEAM
TARGET
FSS2020 PMO, CBN (As Lead within Financial
Services not as Regulator), Inter-connect Clearing
House, SWIFT, Ministry of Communication &
Technology, NIMC, IXPN, NCS, NSA, SSS, EFCC,
Galaxy Backbone, NCS, NIBSS & NITDA .
• Please define the programme
{List the names of the individuals that form the
implementation team}
HIGH LEVEL PLAN
FSS 2020
Centralized –
Implementing Institution
Implementation
Model
RISKS
BENEFITS
DESCRIPTION
Owner
Budget
(NGN)
FSS PMO Contact – Omo
2013
2014
2015
2016
Design FS Cloud
Build FS Cloud
Test FS Cloud
Slide 20
Implement & Roll Out
Strategic
Themes:
MORTG.
INSURANCE
MSMES
Financial System Drivers
Financial
System
Enablers
FINANCIAL MARKETS
1
All
FSS 2020
Version: 23 March 2013
Key Priorities: the Strategic Objectives to be achieved between 2013-2020
Desired EndBy 2020, to be the safest and most diversified financial system among emerging markets, supporting the real economy
State:
PENSION
Outcomes
FSS2020 Strategy Map
Enhance integration with external financial
markets
Strengthen and deepen the domestic market
Collaborate with other regulators and key
stakeholders to structure and develop products
suitable for pension investments
P1
M1
Establish a secondary mortgage market
Promote sustainable economic
development
P2
Enable PFAs to partner with international
counterparties to structure and invest in
domestic infrastructure projects
P3
Proactively lobby and advocate for government
support for projects to qualify for long term
financing
M2
Attract affordable international credit to fund
affordable housing programmes
M3
Advocate for mortgage ready and affordable
housing
I1
Ensure insurance credibility and protect policy
holders
I2
Risk based capitalisation of insurance
companies
SM1
Increase the provision of long term low interest
financing
SM3
Promote financial reporting and governance
SM5
Couple the enhancement of access to finance
with business development support
SM2
Collaborate on the development of financial
services, products and channels
SM4
Collaborate with quality control organisations to
ensure Micro and SMEs output meet national &
international standards
SM6
Advocate and work with the government to
drive SME development
FM1
Deepen and diversify products, services and
institutions to drive the increased participation
in FM
FM3
Establish international competitive market
infrastructure
FM6
Work with the government on fiscal and
structural policy as the foundation for long term
stability of the financial system
FM4
Ensure competitiveness of the financial
markets products and services
FM7
Work with the government to put an incentive
structure for large companies to list on NSE
FM5
Support the integration of FM across West
Africa
FM8
Facilitate the listing of small and medium
enterprises
FM9
Work with the government in operationalizing
the commodities exchange market
FM2
Facilitate the reduction of operational and
transaction costs
Embed the governance and risk management
framework for the insurance companies
I4
Diversify & integrate insurance products into
financial services for long term financing
Increase financial literacy and awareness of financial system products and services
All1
E1
I3
Develop human capital
and attract expertise
E2
Integrated and linked IT
systems
E3
Improve legal and
regulatory framework
E4
Drive active communication,
advocacy and public relations for
FSS2020
NIGERIA PAYMENT SYSTEMS VISION 2020
Nationally Utilised
FSS 2020
Internationally Recognised
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MISSION
To facilitate economic activities by providing safe and efficient
mechanisms for making and receiving payments
with minimum risks to the Central Bank, Payment Service
Providers and End Users
FSS 2020
extending the availability and usage to all sectors and
geographies, banked and unbanked
and conforming to internationally accepted regulatory,
technical and operational standards.
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TRACK RECORD AND FUTURE CHALLENGES
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Success to date
-Re-capitalisation of banks to introduce stability and consumer
confidence
-Introduction of RTGS compliant Payment Systems for financial
settlements
-Introduction of automated NACS Clearing
-Introduction of Central Switch for card transactions
-Formalised CBN Rules and Regulations for Payment Systems
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Key Challenges
-Continued focus on infrastructure initiatives
Deployment and Acceptance of electronic payment methods
-Legal recognition of electronic payment methods
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Achieving the ‘ Quantum Leapfrog ‘
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FSS 2020
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FSS 2020
CASHLESS POLICY:INTRODUCTION
 As part of our ambition to be one of the best 20
economies before the year 2020, CBN informed the
world that Nigeria would commence the process of
changing to a cashless economy by January 2012. The
main reason for the policy was to reduce the amount of
Naira notes and coins (Cash) used for business but not
to eliminate cash usage.
 Our economy uses too much cash for transactions for
goods and services, especially for buying and selling.
This is not how it is done in other progressive countries
of the world where there are other payment options:
Debit and Credit Cards, Bank Transfers, Bank Direct
Debits, Automated Teller Machines (ATMs), and even
Mobile Phone Money.
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NIGERIA’s CASHLESS POLICY
FSS 2020
 The Central Bank of Nigeria (CBN) has introduced a new
policy on cash-based transactions which stipulates a
‘cash handling charge’ on daily cash withdrawals or cash
deposits that exceed N500,000 for Individuals and
N3,000,000 for Corporate bodies.
 The new policy on cash-based transactions (withdrawals
& deposits) in banks, aims at reducing (NOT
ELIMINATING) the amount of physical cash (coins and
notes) circulating in the economy, and encouraging
more electronic-based transactions (payments for
goods, services, transfers, etc.)
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WHY THE CASHLESS POLICY?
FSS 2020
The new cash policy was introduced for a number of key
reasons, including:
 To drive development and modernization of our payment
system 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.
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MAIN THRUST OF THE CASHLESS POLICY
The cash policy aims to curb some of the negative
consequences associated with the high usage of physical
cash in the economy, including:
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FSS 2020
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High cost of cash: There is a high cost of cash along the value chain from the CBN & the banks, to corporations and traders; everyone bears
the high costs associated with volume cash handling.
High risk of using cash: Cash encourages robberies and other cashrelated crimes. It also can lead to financial loss in the case of fire and
flooding incidents.
High subsidy: CBN analysis showed that only 10percent of daily
banking transactions are above 150k, but the 10percent account for
majority of the high value transactions. This suggests that the entire
banking population subsidizes the costs that the tiny minority
10percent incur in terms of high cash usage.
Informal Economy: High cash usage results in a lot of money outside
the formal economy, thus limiting the effectiveness of monetary policy
in managing inflation and encouraging economic growth.
Inefficiency & Corruption: High cash usage enables corruption,
leakages and money laundering, amongst other cash-related
fraudulent activities.
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FSS 2020
EXPECTED BENEFITS OF CASHLESS POLICY
A variety of benefits are expected to be derived by various
stakeholders from an increased utilization of e-payment
systems. These include:
 For Consumers: Increased convenience; more service
options; reduced risk of cash-related crimes; cheaper
access to (out-of-branch) banking services and access to
credit.
 For Corporations: Faster access to capital; reduced
revenue leakage; and reduced cash handling costs.
 For Government: Increased tax collections; greater
financial inclusion; increased economic development.
Increased tax collections; greater financial inclusion;
increased economic development.
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WHAT IS NIGERIAN/LOCAL CONTENT
The phrases are often used interchangeably
The Nigerian content development bill defines
it as:
“…the quantum of composite value added to or
created in the Nigerian economy by a systematic
development of capacity and capabilities through
the deliberate utilization of Nigerian human,
material resources and services in the Nigerian
petroleum industry “.
FSS 2020
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WHAT IS NIGERIAN/LOCAL CONTENT(CONT)
FSS 2020
• Value creation or addition in the Nigerian
economy;
• Development of capacity;
• Utilisation of Nigerian human, material
resources and services
– Involves supply of services and products
- Employment of nationals
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THRUST OF NEW POLICY
FSS 2020
•Aimed at ensuring that substantial proportion of
activities, materials, engineering parts and human capital
utilised in the Nigerian oil and gas industry is domiciled
within the country.
• The domiciliation focus on local value addition, and
promotes technology transfer.
• Stop oil and gas from being an “enclave” economy and
create linkages to the wider economy
• The need to Nigerianise over USD 9 billion of annual
spending in the petroleum industry
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KEY PROVISIONS OF THE BILL
FSS 2020
• The Establishment of a Nigerian Content Monitoring
Board to monitor the achievement of local content in
the oil and gas industry
– Governing council of the board constituted primarily of
government and government agencies
– Operator must submit Nigerian Content performance
report which would be assessed and verified by the
Board
-Board may issue directives to facilitate reporting
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KEY PROVISIONS OF THE BILL CONT
FSS 2020
• Nigerian content plan to be submitted and approved
in the bidding for any licence and before carrying out
any project
• Minimum Nigerian content in projects in the oil and
gas industry specified
• “First consideration” to be given to Nigerian goods
and services
• Bidding process for acquiring goods and services
shall give “full and fair” opportunity to Nigerian indigenous
contractors and companies
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KEY PROVISIONS CONTINUE
FSS 2020
• Nigerians to be given first consideration for
employment and training
• Succession plans for positions not held by Nigerians
• Maximum of 5% of management positions for
expatriates
• Board to approve before application for expatriate
quota is made
• Nigerians to constitute a minimum of 60% of the Board
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KEY PROVISIONS CONT
FSS 2020
• R & D plan to be submitted
• Minister required to make regulations to require any
operator to invest in or set up factory to carry out
any production, manufacturing otherwise imported
into Nigeria
• All insurable risks to be insured with Nigerian
insurance companies
• Only services of Nigerian lawyers or law firms to be
retained
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FSS 2020
OPPORTUNITY FOR LOCAL CONTENT DEVELOPMENT
 Experts believe the cash-less initiative offers a great
opportunity for indigenous IT companies to develop local
content capacity and benefit from the initiative.
 The ongoing drive to introduce cash-less economy
represented a new dawn of opportunities for the
Information and Communication Technology, banking,
and education sectors, among others. Opportunities are
also abound for entrepreneurs as well as the economy as
a whole.
 Software offers the window for local operators to take
advantage of the cash-less initiative since software is
needed for cash-less solutions.
 The cash-less policy was introduced to engender the
accomplishment of the Vision 2020 and modernise
Nigeria’s payment system in line with international best
practices. It is also aimed at reducing the cost of
banking services, drive financial inclusion and reduce
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high security and safety risks.
FSS 2020
OPPORTUNITY FOR LOCAL CONTENT DEVELOPMENT CONT
 According to the CBN, the cash-less initiative is aimed at
reducing the high and increasing cost of cash estimated
to reach N192bn in 2012.
 The adoption and continued encouragement of the use of
PoS terminals is considered a major step for the success
of the cash-less projects and the CBN had set a road map
for the deployment of over 400,000 PoS between now
and 2015.
 The CBN further said it would accelerate PoS density in
the country to 2,247 per 100,000 people by the end of
this year.
 According to the CBN, the PoS density per 100,000
people in Nigeria is 13, while India’s is 67; Uganda, 453;
Namibia, 338; Malaysia, 1,063; and South Africa, 1,063.
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FSS 2020
OPPORTUNITY FOR LOCAL CONTENT DEVELOPMENT CONT
 The target for Nigeria, according to the Bank, is to meet
Brazil’s PoS deployment rate of 2,247 per 100,000
people by 2015.
 It is imperative for some of the PoS terminals as well as
applications that will engender the cash-less initiative to
be produced and developed locally.
 The cash-less scheme would provide huge opportunities
for indigenous ICT players to build a technology based
support industry, and this would also provide the
opportunities for sub-contracting to local IT firms
instead of India and Ukraine companies, among others.
 The cash-less initiative, no doubt, will also provide
opportunities for partnerships among local
organisations.
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FSS 2020
OPPORTUNITY FOR LOCAL CONTENT DEVELOPMENT CONT
 The initiative would lead to GDP contributions and job
creation with a ripple effect on the economy while
boosting national pride and reducing exposure of
national security in the area of espionage.
 Developing local content in the cash-less scheme would
lead to business expansion and job opportunities with
new entrepreneurs coming into the market. More mobile
money companies will emerge while PoS marketers and
installers have new opportunities to explore.
 “The move to cash-less society is good for software
innovation, increased local content and job creation.
Software innovation should focus on improved
functionality, ease of use and interoperability. There is
an imperative to increase local content in software and
ensure that we develop the right skills mix in the jobs
being created. The Nigerian IT industry should seize the
current opportunities to transform itself into a global
force.”
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FSS 2020
RECOMMENDATIONS
 The country should consider tapping into the available
opportunities by producing the PoS devices locally.
 While we start up with ordering of the PoS devices, the
vision should be for the government through CBN to get
a formidable PoS manufacturer to put up an assembly
plant in Nigeria so that on the long run, the device will
be produced locally with some local contents.
 Millions of this device will eventually be needed.
Bringing the plant in will generate employment and have
a positive effect on the economy, and it will save us from
the type of embarrassment we face in the case of the
PHCN meter.
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FSS 2020
PROACTIVE GOVERNMENT
 The Minister of Communications Technology, Mrs.
Omobola Johnson, had recently informed that the
Federal Government was developing a local content
policy for the Nigerian ICT industry, adding that it would
be due for release in the fourth quarter of the year.
 The minister also canvassed increased local production
of e-Payment and other smart cards in the country
ahead of the card explosion expected to be stimulated
by the CBN’s cash-less economic policy, among other
factors.
 The minister, who recalled that an average Nigerian
carried about three cards, decried the situation where a
significant part of the cards was produced outside the
country. She said the local content policy of the Federal
Government would enhance local manufacturing of
payment cards as well as ICT development at large.
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CONCLUSION
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FSS 2020
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As the cash-less policy gains popularity in Nigeria, Information
Technology experts see opportunities in local content
development and urge the country not to miss them
The cash-less policy introduced by the Central Bank of Nigeria
has continued to enjoy adoption across a wide spectrum of
Nigerians, though the journey has been far from smooth. Lack
of awareness, poor infrastructure, and PoS downtime are some
of the indices showing that it is not yet okay with the cash-less
scheme.
Time is ripe to evaluate the roles and strategies the IT
industry would play in the reforms and changes in the
financial, economic and social sectors in Nigeria
Experts believe that there is the need to develop the necessary
security and legislative frameworks to make the cash-less
policy successful.
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Financial System Strategy
2020
End
THANK YOU
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