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.
Ibrahim Khalil
Residents of Tsakuwa community in Dawakin Kudu Local Government Area of Kano State have honoured 11 individuals for their outstanding contributions to the development of the town.
KANO FOCUS reports that the awards were presented during the 6th Annual General Meeting (AGM) of the Tsakuwa Mufarka Sustainable Development Association, held on Sunday at Central Primary School, Tsakuwa.
Among those honoured were the traditional ruler of the community, Sarkin Tsakuwa, Alhaji Isma’ila Santali Tsakuwa; the Chairman of the Tsakuwa Mufarka Sustainable Development Association, Alhaji Tasiu Alhassan Tsakuwa; and a retired headmaster of Central Primary School, Tsakuwa, Alhaji Mahmuda Shehu, who continues to offer voluntary teaching services to pupils in the community.
Also recognised was Alhaji Umar Muhammad Banupe, a Nupe businessman who settled in Tsakuwa and has become an integral part of the community. He was honoured for his significant contributions to the town’s development.
Alhaji Umar Muhammad Banupe receiving a certificate
Other award recipients included the Chairman of the Northwest Development Commission, Professor Shehu Abdullahi Ma’aji (Garkuwan Tsakuwa); the Commander of the Gombe State Hisbah Command, Malam Rabiu Idris; media practitioner Nasiru Yusuf Ibrahim of Abubakar Rimi Television Corporation (ARTV); the founder of Tsakuwa Mufarka Sustainable Development Association, Malam Ibrahim Almustapha Sani; and Sulaiman Salisu Babah, among others.
Alhaji Tasiu Alhassan presenting a certificate to Nasiru Yusuf Ibrahim
Speaking at the event, the Sarkin Tsakuwa, Alhaji Isma’ila Santali Tsakuwa, commended the leadership of the association for its commitment to community development and urged members to sustain their efforts toward improving the welfare of residents.
In his remarks, the Chairman of the association, Alhaji Tasiu Alhassan Tsakuwa, said the non-partisan organisation had prioritised interventions in education, security, and healthcare.
He appealed to members of the community to sustain their monthly financial contributions to enable the association to continue implementing development projects.
Earlier, a member of the association, Malam Abdullahi Wagadi, disclosed that the group generated ₦6.56 million through members’ monthly contributions over the past year.
According to him, the association spent ₦3.84 million on allowances for volunteer teachers and vigilantes, ₦564,000 on fencing the Eid prayer ground, and ₦1.255 million on the renovation of the community police outpost.
He further stated that ₦356,000 was spent on supporting Tsakuwa Model Primary School, ₦430,000 on scholarships for students, ₦700,000 on instructional materials, and ₦50,000 on health assistance for vulnerable residents.
Association Raises Over ₦2.1 Million at AGM
A major highlight of the AGM was the fundraising session, during which the association raised ₦2.143 million from philanthropists and community stakeholders.
Leading the donations was Alhaji Umar Muhammad Banupe, who contributed ₦500,000. He was followed by Hon. Mustapha Bala Dawaki, who also donated ₦500,000, while Hon. Abdulmumin Tijjani, popularly known as Mai POS, donated ₦200,000.
Other donors included the Sarkin Tsakuwa, Alhaji Isma’ila Santali Tsakuwa, who donated ₦100,000; the association’s chairman, Alhaji Tasiu Alhassan Tsakuwa, ₦200,000; Professor Shehu Abdullahi Ma’aji Garkuwan Tsakuwa), ₦100,000; and Malam Rabiu Idris, who also contributed ₦100,000.
The event attracted community leaders, stakeholders, and residents who commended the association for its contributions to grassroots development and pledged continued support for its programmes.
Nasiru Yusuf Ibrahim
Health journalists in Kano State have inaugurated a new professional body, the Kano Health Journalists Network (KAHJON), aimed at strengthening media reporting and advocacy on Reproductive, Maternal, Newborn, Child and Adolescent Health (RMNCAH) and Primary Health Care (PHC).
KANO FOCUS reports that the network was launched during an Alignment, Coordination, Monitoring and Implementation meeting of media coalitions on gender-responsive RMNCAH and PHC, organised by the International Society of Media in Public Health (ISMPH) in Kano.
During the inauguration, journalists unanimously elected Khadijah Aliyu of Radio Nigeria as Chairperson of the newly established network.
Other members of the executive committee include Mustapha Hodi Adamu of People Daily Newspaper as Vice Chairperson, Abdullahi Hassan of ARTV as Secretary, and Mustapha Salisu of Prime Times as Public Relations Officer.
Speaking at the event, the Programme Director of ISMPH, Mr. Solomon Dogo, said the establishment of KAHJON would help unify existing health reporting groups and improve media coverage of critical public health issues, including polio eradication, nutrition, maternal health, and primary healthcare services.
He congratulated the newly elected executives and expressed confidence that the network would enhance collaboration among media practitioners while strengthening health advocacy efforts in the state.
Dogo noted that similar health journalists’ networks are already operating in Lagos and Kaduna states, adding that development partners remain committed to supporting initiatives that promote public health advocacy.
Also speaking, ISMPH Programme Officer in Kano, Hajiya Sabuwa Yahaya, said the platform would improve coordination among journalists, enhance access to health information, and strengthen evidence-based reporting on health issues.
According to her, the network will also provide a stronger platform for advocacy and engagement with government institutions, development partners, and local communities.
The inauguration ceremony attracted goodwill messages from several development partners, including the Integrated Budget and Policy (IBP), LISDEL, CCSI, SANDHEF, and the Clinton Health Access Initiative (CHAI).
Representatives of the Kano State Ministry of Health, the Drug Management and Consumables Supply Agency, and the Kano State Contributory Healthcare Management Agency also attended the event.
A major highlight of the ceremony was the signing of a Memorandum of Understanding (MoU), which formally established the Kano Health Journalists Network and marked the beginning of a new chapter in health journalism and advocacy in the state.
Nasiru Yusuf Ibrahim
A House of Representatives aspirant for the Kura/Madobi/Garun Malam Federal Constituency under the National Democratic Congress (NDC), Alhaji Mahmud Tijjani Kura, has withdrawn his candidature and defected to the All Progressives Congress (APC).
KANO FOCUS reports that the development was disclosed on Saturday by a prominent APC chieftain, Alhaji Aliyu Lawan Dambatta, popularly known as Majidadin Dambatta.
According to Majidadin Dambatta, he led a delegation alongside the former aspirant to a meeting with Governor Abba Kabir Yusuf, during which Kura formally announced his decision to join the APC.
Majidadin Dambatta described the defection as a significant boost to the ruling party, noting that it would further strengthen the APC’s unity and political structure ahead of future elections.
He said the party remained committed to working collectively for the progress and development of Kano State and the country.
The APC stalwart welcomed Kura back into the party and expressed confidence that he would make meaningful contributions to its growth and the welfare of the people.
The defection is expected to add a new dimension to the political landscape in Kano State as parties continue to realign ahead of future electoral contests.
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