Press spotlights report that Nigeria’s digital infrastructure is inadequate for cashless economy

APA – Lagos (Nigeria)
The report by the World Bank that Nigeria’s digital and financial infrastructure is inadequate to support a swift transition to a cashless economy is one of the trending stories in Nigerian newspapers on Thursday.
The Punch reports that Nigeria’s digital and financial infrastructure is inadequate to support a swift transition to a cashless economy, the World Bank has pointed out.
The bank stated that this was one of the reasons the Central Bank of Nigeria’s naira redesign policy failed. It disclosed this in its ‘Nigeria Development Update (JUNE 2023): Seizing the opportunity’ report. It affirmed that the policy led to a scarcity of cash and negatively impacted economic activity in the early months of 2023.
It said, “The short transition period of the naira redesign was insufficient for the CBN to replace the demonetized old notes with new ones, leading to a cash scarcity.
“The lack of adequate digital and financial infrastructure and processes to support a swift transition to a cashless economy— coupled with the fact that only 40 per cent of adults have a bank account—further exacerbated the situation. The cash shortage resulted in a black market for new notes, inflating overall transaction costs.”
The Washington-based bank noted that the adverse shock to economic activity was further intensified by reversals in policy decisions and conflicting positions between states and the Federal Government, the CBN, and the Supreme Court.
It highlighted that non-oil-non-agriculture GDP declined from an average quarterly growth rate of 6.0 per cent in 2022 to 3.9 per cent y-o-y in Q1 2023.
It said, “Firms reported that the inability to secure regular funding and operating cash for expenditures, combined with rising prices and fuel shortages, led to a decline in demand.”
The newspaper says that Seafarers have said that the Nigerian maritime industry has the potential to generate $100bn annually if properly harnessed.
The seafarers said this on Sunday at an event to commemorate the 2023 World Seafarers Day, organised by the Joint Body of Nigerian Seafarer’s Professional Group comprising the Female Seafarers Association of Nigeria; Concerned Seafarers Forum; Merchant Seafarers Association of Nigeria; Maritime Professional Forum; Nigerian Association of Master Mariners; Great Mariners; Nigerian Seafarers Connect; Alumni of Maritime Academy of Nigeria, Oron and Nigeria Maritime Pilot Association.
Addressing journalists at the event, the Secretary-General of the Merchant Seafarers Association of Nigeria, Captain Alfred Oniye, said the proper implementation of the Cabotage Act could propel the country’s maritime industry to generate at least $50bn annually.
“The implementation of Cabotage Act is enough to generate nothing less than $50bn for the maritime industry yearly because it will open channels for opportunities in the industry. Nigeria is bleeding through the maritime. This industry can generate nothing less than over $100bn annually for the present administration.
“Apart from the implementation of the Cabotage Act, Nigeria is not too small to have a coast guard. The establishment of a coast guard will go a long way for Nigeria,” he asserted.
Oniye said that 80 per cent of Nigerian seafarers were jobless and the majority of them were out of sea.
“If we want these seafarers to meet up with their global counterparts, all they need is to add to their training and let them be more professional and create jobs for them. Even the foreigners that are bringing ships here with Nigerian flagships, the government must come up with a policy to say that 80 per cent should be Nigerian seafarers while 20 per cent foreign.
“The Federal Government must come out with a policy that would encourage shipbuilding in the country. Building ships alone in Nigeria would create jobs for over 5,000 Nigerians. Implementation of the Cabotage Act is enough to create jobs for over 15,000 Nigerians because the ship would be built here and owned by Nigerians,” he further stated.
The Guardian reports that the Federal Government is to stop direct funding of professional bodies and councils from 2026, the Director-General, Budget Office of the Federation, Ben Akabueze, has disclosed.
In a circular dated June 26, 2023 with reference number ‘DG/BDT/GEN.CORR/2016/XII/3067’ and addressed to Registrar, Nigerian Council of Food Science and Technology, Federal Ministry of Science, Technology and Innovation, Akabueze said the step is in line with the decision of the Presidential Committee on Salaries (PCS)
The memo reads in part: “I wish to inform you that the Presidential Committee on Salaries (PCS), at its 13th meeting, approved the discontinuation of budgetary allocation to professional bodies/councils effective December 31, 2026.”
He added that the purpose of the communication was to inform the Registrar that, in compliance with the committee’s directive, the Budget Office will no longer make budgetary provisions to your institution with effect from the above stated date and, you will be regarded as a self-funded organisation.
“For the avoidance of doubt, you will be required, effective December 31 2026, to be fully responsible for your personnel, overhead and capital expenditure,” Akabueze clarified.
The newspaper says that the Nigerian Mining and Geosciences Society (NMGS) has lamented that oil theft has attained the status of a Frankenstein monster to the extent that the quantum stolen now outstrips what is left to be sold legitimately.
The president of NMGS, Akinade Olatunji, while speaking after his installation as the 32nd president of the society, in Ibadan, the Oyo State capital, called for a holistic approach to curb the menace. Olatunji said increasing security surveillance could not solve oil theft, stressing the need for communities to imbibe a sense of ownership of the assets in their domains.
He said the approach of giving tokens to communities who are aware of the humongous resources being carted away from their lands does not engender patriotism and a sense of belonging. Olatunji, therefore, called for strategic and deliberate actions directed at ensuring that the communities own or co-own the assets.
He said: “The Oil producing communities in Nigeria are overdue for a sort of marshal plan that will transform them from the ghetto setting to the glamorous setting they have seen in cities built with money from their resources.
“The amount of resources allocated to oil communities in the Petroleum Industry Act (PIA) is not sufficient to guarantee the kind of safety on investment that is required for the continuous survival and profitability of the oil and gas sector in the long run.
“This is an aspect of the PIA that needs to be urgently amended otherwise the entire prospects expected of the Bill may be jeopardised. We must think without the Box in fixing this problem.
This had lingered for too long.
“The celebration and excitement that greeted the enactment of the Petroleum Industry Act 2021 was an indication that the sector was overdue for a thorough reform. The PIA has unleashed a new set of vigour, energy and enthusiasm into the sector.
GIK/APA