Says e-transactions have comparative advantages over cash-based transactions | By Yinka Ojo

In its on going intiative to make the country a cash lite society, The Central Bank of Nigeria (CBN), has stressed the importance of security in making e-payment a reliable system. 

This call was made by CBN’s Director of Financial Policy and Regulation Department,Chris Chukwu, at the September edition of Nigeria Electronic Fraud Forum (NEFF). He implored  commercial banks and other financial institutions to work closely in the fight against cybercrimes and electronic payment frauds in order to make the financial system a safe haven.

Chukwu who was represented by Sebastine Barde, said, ?A common problem associated with e-payments platforms is their use by cyber criminals who take advantage of inadequate controls in the payment platforms.?

?We noted that Automated Teller Machines were introduced in 1993 without adequate guidelines and embedded security controls. The machines were using magnetic stripe cards which were susceptible to cloning hence the myriad complaints of illegal withdrawals from customers? accounts by cyber criminals.

However, with the migration of Euro Master Visa card in February 2011, such complaints have dropped substantially in 2012.?

Stating how globally relevant and convienent e-payment system is, the CBN director said: ?E-payments are consequently globally favoured and rapidly pursued by nations because they are efficient, convenient, cost effective, transparent, secured, fast, and accurate, reduce corruption by minimising interaction of government?s officials with contractors and leaving trails, provide better visibility into an entity?s spending, afford ability to leverage financial incentives on transactions as well as advanced fraud protection.

Chukwu noted that e-payments were designed to automate, integrate and simplify the payment process. He said: ?It is therefore no exaggeration to say that e-transactions have comparative advantages over cash-based transactions. The cost of currency management is usually a high figure in the accounts of any central bank of a cash-based economy.?

Yinka Ojo

Yinka has taught at various levels of education. He has published a textbook on effective teaching practice and several academic papers in reputable journals. He is currently an education consultant. He loves writing, poetry, music and is presently working on a musical album billed to be released into the market soon. 

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