The Federal Government is working towards removing all stumbling blocks against seamless digital payments and e-commerce across the country.
The Deputy Chief of Staff to the President, Ibrahim Hadejia, said this in Abuja on Wednesday during a stakeholders’ roundtable.
The effort being spearheaded by the Office of the Vice-President through the Ministry of Industry, Trade and Investment, and development partners aims at ensuring that the citizens seamlessly transfer money using their mobile phones and other devices.
Hadejia reiterated the resolve by the administration of President Bola Tinubu to drive financial inclusion, using different strategies for different digital payment infrastructure. This, according to him, is with a view to essentially reach the last mile and serve the financially excluded.
He said that there were very few countries in the West that have the kind of ease of payment and banking that is available in Nigeria.
“It doesn’t happen anywhere in the world, and by the time we begin to address these issues, we can use that reach to enter into the e-commerce stage.
” And like I said, from our own perspective we are also worried about the exclusion that is inherent in that so that every Nigeria, no matter where he is, can have access to quality, simple financial services that are beyond educational and poverty levels.
“From the Office of the Vice-President’s perspective, we look at the Digital payment and identity as really the last stumbling block in opening up e-commerce in Nigeria.
“Yes, there is e-commerce going on, but I think the biggest impediments surround the ease of payment, the identity issue, and several things we are pushing, which are all interlinked.
“We are pushing and driving financial inclusion in the Office of the Vice President, which has to do with the strategy for different digital payment infrastructure that will essentially reach the last mile and serve the financially excluded.
“So, resolving these will amount to killing several birds with one stone. We have been to India and seen what robust PPI can do to e-commerce, and not just e-commerce but trade generally,” he said.
Hadejia assured that by the time the government was able to make payment seamless, cell phone users would be able to receive and make payment easily.
He added, ” We have seen situation where hawkers’ RQ code on their trade, taxes, and statistics are staggering.
” You have a situation where, in a few years, the amount or volume of transaction from that platform is even in excess of the traditional credit card.
” So, you have the likes of Wizard and Master card taking an interest, jumping into their space.
“And, of course, to also identify why the African Free Continental Trade Agreement has simply refused to gain the traction that it should have several years after it was established.
“We can also point to the fact that the issues have to do potentially with the cross-border payment and the identity issue. We are hoping that discussions like this will offer solutions.”
Hadejia further stated that the roundtable would enable the government to gather enough information and data to make a case from its perspective in regulation and, infrastructure.
He said, ” This includes enacting laws to ensure that most of the issues that have been stagnating the expulsion of e-commerce are addressed.”
The Principal Research Fellow, International Economic Development Group, Dr Max Mendez-Parra, ODI Global, said the organisation had been working with the African Continental Free Trade Secretariat and other African countries on Digital Trade.
Mendez-Parra explained that the implementation of the AFCTA was transformative for the African economy, especially on the Nigerian economy.
He added that the ODI was assisting government and AFCTA Secretariat in Accra on different aspects associated with the AFCTA.
Mendez-Parra said,”In particular, we are supporting the negotiations and implementation of the investment protocol and the digital trade protocol as well.
“So, we have been working with the AFCTA. And this is what has brought us to Nigeria.
“Already, this is our fourth year that we have been here, and we are teaming up with the Office of the Vice President to basically enhance different aspects associated with the implementation of the Digital trade protocol in Nigeria.”
The Minister of Industry, Trade and Investment, Dr Jumoke Oduwole, said the ministry and the AFCTA secretariat had come up with an initiative called the ‘AFCTA DG pass’.
According to her, the initiative is aimed at operationalising the digital identities.
Oduwole, represented by her Special Adviser, Patience Okala, explained that the initiative was still at its infant stage, expressing hope that the conversations at the roundtable, as well as the concerns that are raised could fill into the process.
The Special Assistant (SA) to the President on Information Communications Technology (ICT) Policy, Salisu Nakande, said the project came into light two years ago, with the support of the Vice-President, Kashim Shettima.
“And this year is more importantly about the conversation across the payment which we are doing in alignment with the Federal Ministry of Industry, Trade and Investment.
” We believe that as much as Nigerians want to trade, they need to be able to make payments in a seamless way across board, and there is a lot of economy to tap in there. So, that is the basic for this conversation,” he said.
