Headlines
Digital Payments Surge in Kano Amid Cash Crunch
Zulaiha Danjuma
The rise of digital payment systems in Nigeria has transformed the way people conduct financial transactions.
KANO FOCUS reports, In Kano, traders in the Hausawa Sabon Titi community have been at the forefront of this shift, embracing digital payment solutions to facilitate their daily business activities.
The introduction of the MoniePoint POS machine has revolutionized businesses in the area. Mr. Kabiru Yahaya, a provision store owner, noted that the cash squeeze prompted him to adopt the MoniePoint POS machine. “Most of our customers prefer to pay electronically, so we had to adapt to meet their needs,” he explained.
Similarly, Yusuf Usman, a bread and tea vendor, reported that 85% of his customers use ATM cards, mobile wallets, or phone transfers to make payments. “The MoniePoint POS machine has made it easier for me to receive payments and make payments to suppliers too,” he said.

Provision Shop at Sabontiti, Kano
Benefits of Inclusive Instant Payment Systems
The adoption of inclusive instant payment systems has not only improved business operations but also enhanced financial security. Mr. Usman noted that the use of digital payments has reduced the risk of robbery and burglary.
Inclusive instant payment systems offer several benefits
Increased financial inclusion: IIPS provides access to financial services for underserved populations, promoting economic growth and development. According to the Central Bank of Nigeria (CBN), the number of Nigerians with access to financial services increased from 36.8% in 2016 to 63.2% in 2020.
Improved economic efficiency: Digital payments reduce transaction costs, increase the speed of transactions, and enhance the overall efficiency of the economy. A study by McKinsey found that digital payments can increase GDP by up to 6% in some African countries.
Reduced risk of cash transactions: IIPS minimizes the risks associated with cash transactions, such as robbery, burglary, and counterfeiting. According to the Nigerian Inter-Bank Settlement System (NIBSS), the value of digital transactions in Nigeria increased by 50% in 2022, reaching ₦10.9 trillion.

Bread seller
Nigeria’s Cash Crunch Drives Digital Payments
Nigeria’s economy has traditionally relied heavily on cash transactions. However, the COVID-19 pandemic and subsequent lockdowns accelerated the adoption of digital banking and inclusive instant payment systems. The government’s efforts to curb excess cash circulation and promote digital payments have further driven the growth of IIPS.
According to data from the Central Bank of Nigeria (CBN), the number of active mobile money agents in Nigeria increased from 10,000 in 2019 to over 1.4 million in 2022.
Challenges and Limitations of IIPS
Despite the benefits of IIPS, there are challenges and limitations to its adoption. Some of these challenges include:
*Infrastructure constraints:* The lack of reliable internet connectivity and electricity in some areas can hinder the adoption of IIPS. According to the Nigerian Communications Commission (NCC), the country’s internet penetration rate stood at 44.6% as of 2022.
*Security concerns:* The risk of cyber attacks and data breaches can deter some individuals and businesses from adopting IIPS. According to a report by KPMG, the average cost of a data breach in Nigeria is estimated to be around ₦2.5 billion.
*Regulatory issues:* The lack of clear regulations and guidelines can create uncertainty and confusion for providers and users of IIPS. According to the Central Bank of Nigeria (CBN), the regulator is working to develop a more comprehensive regulatory framework for digital payments in Nigeria.
Expert Reaction
Dr. Tijjani Ahmed, a Senior Lecturer at the Hussaini Adamu Federal Polytechnic Kazaure and a Research Fellow at the African Center for Tax and Governance, explained that the advancement of digital technology and the introduction of digital instant payments have increased financial inclusion for small businesses.

Dr. Tijjani Ahmed
“Prior to 2015, Nigeria had experienced low financial inclusion, with over 40% of the populace financially excluded,” he explained. Dr. Ahmed noted that this excluded demographics were not just individuals but also businesses that were in need of financial inclusion.
“Largely, the businesses in Northern Nigeria are informal, and one of the requirements in this modern age is to be banked and run a business account,” he said.
Dr. Ahmed added that with the advent of inclusive instant payment services like MoniePoint, the majority of small businesses are now able to be involved in the financial system, making and receiving payments, paying bills, and keeping track of their financial inputs and outputs.
“The Nigerian government has a target to phase out cash transactions by 2030; these digital financial technologies will help this transition, making businesses resilient because without these financial inclusive platforms and no cash, business will die,” he said.
The adoption of inclusive instant payment systems in Nigeria has transformed the way people conduct financial transactions. As the country continues to navigate its cash crunch, the growth of IIPS is expected to drive financial inclusion, improve economic efficiency, and reduce the risks associated with cash transactions. With the increasing adoption of IIPS, Nigeria is poised to make significant strides in promoting financial inclusion and driving economic growth.
As the country continues to evolve and adapt to the changing financial landscape, it is essential to address the challenges and limitations associated with IIPS to ensure its sustainable growth and development.
This story is produced under the Digital Public Infrastructure (DPI) Fellowship of the Media Foundation for West Africa (MFWA) and Co-Develop in partnership with Kano Focus Newspaper online.
Headlines
“As You Sow, So Shall You Reap”: Imam Reminds Muslims of Divine Justice
Nasiru Yusuf Ibrahim
Imam Nura Garba Mato has urged Muslims to remain conscious of their actions, saying that divine reward and punishment often correspond to the nature of people’s deeds.
KANO FOCUS reports that the imam made the call while delivering a Friday sermon at Jami’u Ansar wal Muhajirun Jumaa Mosque, Cotton Ginnery Layout, Zawaciki, Kano State.
The sermon, titled “Al-Jazā’u Min Jinsil-‘Amal” (Recompense Is According to the Nature of Deeds), focused on the Islamic teaching that people’s actions have consequences and that good deeds attract divine reward.
Imam Mato said Allah had established enduring principles in human life that do not change, urging Muslims to understand these principles and allow them to guide their conduct.
He explained that one of these principles was that recompense corresponds to the nature of one’s actions, stressing the importance of living righteously and fulfilling one’s responsibilities to Allah and fellow human beings.
The imam called on Muslims to observe *taqwa* (consciousness of Allah), remain steadfast in their faith and follow the teachings and traditions of Prophet Muhammad (peace be upon him).
He also highlighted the importance of helping people in difficulty, easing the burdens of others and showing compassion to fellow Muslims.
Quoting a prophetic tradition, the imam emphasised that whoever relieves a Muslim of a hardship in this world will receive relief from Allah on the Day of Resurrection.
He further explained that whoever conceals the faults of a fellow Muslim would receive Allah’s concealment of their faults on the Day of Resurrection, while those who make things easier for people in difficulty would receive Allah’s assistance in this world and the Hereafter.
The sermon also underscored the importance of supporting others, noting that a Muslim’s relationship with Allah should be reflected in their treatment of fellow human beings.
Imam Mato urged Muslims to reflect on their deeds and recognise that their conduct carries consequences, encouraging them to embrace good actions, assist those in need and uphold the teachings of Islam in their daily lives.
He stressed that Muslims should make righteousness, compassion and service to others central to their lives in pursuit of Allah’s pleasure and success in the Hereafter.
Headlines
Kano Govt Orders Retired Civil Servants to Vacate Offices, Hand Over Government Property
Nasiru Yusuf Ibrahim
The Kano State Government has directed all civil servants who have attained their statutory retirement age or completed the required length of service to immediately vacate their offices and hand over government property in their possession.
KANO FOCUS reports that the directive was contained in Circular issued on Tuesday by the Establishment Directorate, Office of the Head of Civil Service, Kano State.
The circular, signed by the Permanent Secretary, Establishment, Abba A. Danguguwa, on behalf of the Head of Civil Service, was titled: “Unauthorized Continuance in Service After Statutory Retirement by Civil Servants in Ministries, Departments and Agencies (MDAs) of Government – Call for Immediate Handing Over of Official Documents, Properties.”
The government said it had observed that some civil servants continued to remain in office and operate in official capacities after reaching their statutory retirement period.
According to the circular, such conduct was a “negation to the reputation of the Civil Service of Kano State,” noting that the service had a long-standing tradition of ensuring seamless transition by retiring civil servants.
It described the continued stay in service after retirement as a direct infraction and aberration of relevant provisions of the State Civil Service Rules and other applicable service regulations.
The government stressed that it was legally and administratively untenable for any officer to remain in service or perform official functions beyond the statutory limit.
Consequently, all civil servants who had retired either by age or length of service were directed to immediately exit and hand over all official documents, government property and duties to their immediate subordinates in their respective ministries, departments and agencies.
The circular also directed all Accounting Officers, including Permanent Secretaries and Chief Executives, as well as Directors of Administration and Personnel Management, to ensure strict and immediate compliance with the directive.
It warned that any officer found aiding, abetting or condoning the continued stay of a retired officer in service would face appropriate disciplinary action in accordance with the Civil Service Rules.
The directive takes immediate effect, the circular stated.
Headlines
Kano Settles N32bn Pension, Gratuity Liabilities, Says Gov Yusuf
Nasiru Yusuf Ibrahim
Kano State Governor Abba Kabir Yusuf says his administration has settled approximately N32 billion out of the N48 billion inherited backlog of gratuities and related liabilities owed to retirees in the state.
KANO FOCUS reports that Gov Yusuf disclosed this on Thursday while addressing residents at the 66th Independence Anniversary celebration held at the Sani Abacha Indoor Stadium in Kano.
The governor said the government had also sustained the regular payment of monthly pensions while increasing the minimum monthly pension from N5,000 to N20,000.
He said the welfare of workers and pensioners remained a priority of his administration, citing timely payment of salaries, improved remuneration and measures aimed at strengthening the public service.
According to him, the state has maintained the practice of paying workers’ salaries on or before the 25th of every month while implementing the N71,000 minimum wage for civil servants.
Gov Yusuf also said his administration was sponsoring public servants for professional training, including programmes at the Administrative Staff College of Nigeria (ASCON), to strengthen their administrative and leadership capacity.
He reaffirmed the government’s commitment to building a professional and motivated workforce, while ensuring that the contributions and sacrifices of serving workers and retirees were recognised and treated with dignity.
