Nigeria’s Cashless Initiative: Progress Despite Obstacles, Arewa says

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Yinka Arewa, Group Chief Financial Officer Parthians Partners commends finance Correspondents Association of Nigeria (FICAN) for organizing this conference, which I believe will foster collaboration among key industry players aiming to enhance the effectiveness and efficiency of electronic payment systems in Nigeria, he said.
FICAN 2023Annual Conference event holds at Orchid Hotels on Saturday September 16,2023 Lekki Lagos.
The event with theme: “Strengthening Digital Infrastructure For Efficient Innovative Payment Systems in Nigeria” said In our rapidly evolving digital era, where speed and efficiency are paramount, electronic payment systems have become the cornerstone of financial transactions. As we all know, the demand for seamless, secure, and convenient digital payment solutions is at an all-time high.
Arewa further noted that the consider the example of Parthian Partners’ i-invest app, which revolutionizes investment opportunities by allowing users to access a wide range of financial products within minutes, from Fixed Deposits to stock purchases, all from the comfort of their mobile devices.
He continue, the significance of electronic payments to Nigeria’s economy cannot be overstated. A recent McKinsey report revealed that FinTech activities, particularly in payments, constitute approximately 15% of the country’s banking revenue pools.
“In 2022, Nigeria unlocked $3.2 billion in additional economic output through electronic payments, particularly real-time services, showcasing their immense potential for growth and development.
Despite these achievements, Arewa added that Nigeria faces significant challenges on its journey towards a cashless economy. According to him One of the primary issues is inadequate infrastructure, including power supply and telecommunications facilities, which are essential for the smooth operation of e-payment systems.
“The reliance on stable power sources and robust IT infrastructure is evident, especially when we witnessed widespread e-payment failures during a period of cash scarcity earlier this year.
Additionally, cybersecurity concerns loom large. The rapid growth of FinTech has ushered in numerous advancements but also exposed us to unprecedented risks, including cybercrime.
These crimes have far-reaching consequences, from facilitating corruption to terrorism, all of which undermine technological and socio-economic development, he added.
“Recent incidents serve as a reminder that cybersecurity remains a pressing issue in our digital world. Addressing these challenges requires a collaborative effort among industry stakeholders. A unified approach involving the Central Bank, Telcos, commercial banks, and FinTech companies is essential to expand internet connectivity and ensure seamless electronic transfers across Nigeria. Standardizing banking applications across the industry could significantly reduce the occurrence of failed or delayed payments, but this requires robust technology and stringent security measures.
Furthermore, collaboration among stakeholders, including financial institutions, FinTech companies, government entities, and regulatory bodies, plays a pivotal role in ensuring the success of innovative solutions. The key to mitigating the frictions in Nigeria’s financial service sector lies in policy, regulation, and collaboration, he stated that to combat fraud, strong collaboration between the government, private sector organizations, and international partners is essential.
Parthians Partners added that sharing intelligence and pooling resources will significantly contribute to the fight against cybercrime. Investment in cybersecurity infrastructure, including training facilities, incident response centers, and research and development centers, is equally crucial.
Ultimately, Arewa further disclosed that our goal is not just a cashless Nigeria but an inclusive digital financial ecosystem that caters to the needs of the entire Nigerian population. Through collaboration and innovation, we can overcome these challenges and pave the way for a more secure and efficient electronic payment landscape in Nigeria.

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