Cashless Policy in Nigeria and Its Socio-Economic Impacts

Abstract

This paper examines the cashless policy in Nigeria and its socio-economic impact on small scale businesses. In Nigeria as in many developing countries, cash is the main mode of payment thus making the economy heavily cash – based. The policy was introduced in Nigeria by the Central Bank of Nigeria (CBN) in December 2011 and was kick-started in Lagos in January 2012. The objective of the study is to determine the possible implication of a cashless economy on small scale businesses in Nigeria. It will also proffer solution to the impending challenges that small scale businesses will face in a cashless society. With a review of existing literature on the concept of cashless economy and its effect on small scale business. Recommendation on how to effectively implement the cashless policy in order to encourage small scale business owners to be part of it were highlighted. It was concluded that if necessary measure are not put in place and the necessary stakeholders to the policy carried along with consideration on how the policy may affect them, the cashless policy will adversely affect small scale business and may engineer their failure.