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Beyond Nigeria's Cashless Policy: Implications for Commercial  Transport Operators
  • 21 Dec 2022

Beyond Nigeria's Cashless Policy: Implications for Commercial Transport Operators

Recent events by the Central Bank of Nigeria (CBN) have created uncertainty for businesses especially those that are yet to digitalise their operations. The issuance of new currency and most recently the cashless policy issued by the CBN that restricts cash withdrawals and transactions has caught a lot of businesses off-guard.


At Bus54, we have put together this guide to help you understand how the cashless policy impacts on the transportation industry and the opportunities for transport operators in Nigeria to make a shift to digitally manage their end-to-end operations.


As a reminder, here is a summary of the directive by the Central Bank to all Deposit Money Banks (DMBS), Payment Service Banks (PSBs), Primary Mortgage Banks (PMBs), and Microfinance Banks (MFBs):


The maximum cash withdrawal over the counter (OTC) by individuals and corporate organizations per week shall henceforth be N100,000 and N500,000 respectively. Withdrawals above these limits shall attract processing fees of 5% and 10%, respectively.


Third-party cheques above N50,000 shall not be eligible for payment over the counter, while extant limits of N10,000,000 on clearing cheques still subsist.


The maximum cash withdrawal per week via Automated Teller Machine (ATM) shall be N100,000 subject to a maximum of N20,000 cash withdrawal per day.


Only denominations of N200 and below shall be loaded into the ATMs. The maximum cash withdrawal via point of sale (PoS) terminal shall be N20,000 daily.


In compelling circumstances, not exceeding once a month, where cash withdrawals above the prescribed limits are required for legitimate purposes, such cash withdrawals shall not exceed N5,000,000.00 and N10,000,000.00 for individuals and corporate organisations, respectively.


Source: https://www.cbn.gov.ng/Out/2022/CCD/RevisedCashWithdrawal.pdf


The CBN encouraged customers to use alternative channels (internet banking, mobile banking apps, USSD, cards/PoS, eNaira, etc.) to conduct their banking transactions.


Businesses now need to fast-track their transition to cashless payments, which could completely transform a business, especially those of commercial transport operators. With a cashless system, transport operators can more easily and securely accept electronic payments from customers, which gives them more insight into their business that can be used to drive sales and grow their business. Additionally, the cashless policy will reduce the amount of time and money that transport operators spend on managing and safeguarding cash, allowing them to focus on delighting their passengers and improving operations.


Some of the benefits of the cashless policy for transport operators are:


Increased transaction efficiency: The cashless policy will enable transport operators to process transactions more efficiently, reducing the need for handling cash and reducing the risk of fraud, loss, or theft.


Operational efficiency: Going cashless improves service efficiency by reducing queues at bus terminals. Passengers only need to book online and show their e-tickets at their departure point, meaning reduced waiting time to find out the fare, wait for their change, or get  their luggage loaded up. By reducing these queues at bus terminals, services can run much smoother with minimal delay.


Increased adoption of financial services: The cashless policy will drive transport operators to seek value-adding financial services which will enable them to operate seamlessly whilst also reducing risks to operation. This could spur improvements in offerings to transport operators, with additional benefits of competitive offerings from service providers.

Increased competition among operators: The cashless policy will increase competition among transport operators. With passengers increasingly seeking a great booking experience, operators that have already made the shift to digital will have a competitive advantage over those that do not.  


Risks of the Cashless policy to Transport Operators


Increased costs: The cashless policy may increase costs for transport operators, as they will need to invest in new technology and infrastructure to support digital transactions.


Disruption to operations: There is a risk to operators around disruptions in accepting cash bookings while they transition to a digital platform. This coupled with the inability of passengers to access enough cash for payment may lead to loss of customers and poor booking experience.


Increased reliance on technology: The cashless policy will also increase reliance on technology for transport operators, which may be a challenge for those that are not familiar with technology or have limited access to it.


How Bus54 Is Supporting Transport Operators to make the transition to Digital Services


Bus54 has developed a platform that provides payment integration and an interface that enables transport operators to manage their operations from a secure portal.


Here is what you get when you are a Bus54 Transport Partner:

Cost-free, quick integration which means you can start selling your tickets online on our platform in as little as 48 hours.

Multiple payment options are already integrated so your customers can choose a payment method they are familiar with.

Manage your entire operations from a secure portal with no need for additional investment in IT software or hardware.

A new channel to increase your ticket sales. This applies even if you have an existing website.



A further benefit of transport operators moving to Bus54 is that they can accept bookings days in advance which is good for cash flow and allows them to plan ahead e.g., fueling their buses a day before the journey which will result in on-time departure.


Go to https://partner.bus-54.com/ to find out how Bus54 can support you to implement seamless cashless operations for your transportation business.

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