The Future of Cash Management Services

The International Association of Currency Affairs (IACA) held an online round table discussion considering the Future of Cash Management Services, with a particular focus on cash in transit (CIT) companies, cash management companies (CMC) and cash processors. The panellists were Charles Nwodo from Integrated Cash Management Services in Nigeria, Tanja Kulisch-Ziemens from the International Security Ligue (ISL) and Scott Forster from the CPT Group. David Faglemen from Enryo Consulting was the moderator.

Opening statements: cash in Nigeria

Charles Nwodo painted a downbeat assessment of cash in Nigeria today. The Central Bank of Nigeria (CBN) wants digital payments to grow in Nigeria. The e-naira is part of CBN’s modernisation plan to move to a cashless society.

Cash infrastructure is poor in Nigeria, with little investment in assets and little enforcement of CBN’s regulatory guidelines by CBN. In 2012 CBN introduced charges for cash withdrawals. Prices for cash withdrawals and deposits are set by CBN, but these prices do not reflect the true costs of cash handling. As a result, the cash system is financially unstable, and cash is not available as it should be. Nigeria faces the risk of infrastructure failure due to the lack of investment.