ICT Africa Headline News

Cashless Policy Gets U.S.$5 Million Infrastructure Boost From Grand Towers

18 June, 2014

Source: Vanguard

The cashless policy of the Central Bank of Nigeria, CBN has once again received a major boost, with Payment Terminal Service Provider, Grand Towers Limited, promising to inject over $5 million on payments backbone infrastructure, in July, when it would commence services in the country.

The planned roll out of the services, will see to the first pilot phase that would take off from Abuja and Lagos.

According to the company, this is part of its efforts to support Nigeria's move to adopt the nationwide use of electronic channels for cash transactions.

Announcing this at a media chat with Journalist in Abuja, the Managing Director, Grand Towers Holdings - South Africa, Mr. Udo Botha and Managing Director, Grand Towers Asset, Nigeria, Mr. Ugocohukwu Duru said, Grand Towers' integrated strategy will focus on providing dedicated front end technical service solutions to the Market through multiple e-payment and mobile payment solutions.

Both said the huge investment in the backbone infrastructure was necessitated but the company's resolve to offer seamless services, part of which are services which will be rendered using the best and robust IT solutions and equipments that are efficient, cost effective and user friendly.

He highlighted the collaboration with NIBSS and select commercial banks which he said his company was relying upon to provide support and maintenance services to, merchants using POS terminals and devices.

On his part, Duru, said that all parties were confident that the intended roll out, will be backed by dedicated technical, administrative & training support and maintenance experts.

The company said, that investing in the country was part of carving a niche for itself to be a leader in the Nigerian market.

Recall that the Central Bank of Nigeria on September, 2011 licensed five companies to act as Payment terminal service providers, PTSP's for the next two years.

The companies are: ValuCard; Etop Nigeria Limited; Paymaster; ITEX and Citiserve.

These companies are to use their services to enhance the new cashless transaction policy, which stipulates a 'cash handling charge' on daily cash withdrawals or cash deposits that exceed N500,000 for Individuals and N3,000,000 for Corporate bodies.

The new policy on cash-based transactions (withdrawals & deposits) in banks, aims at reducing but not eliminating the amount of physical cash (coins and notes) circulating in the economy, and encouraging more electronic-based transactions for payments for goods, services, transfers.

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