Cashless transactions will increase tax base, expert tells FG

Cashless transactions can help formalise the economy, OnePipe’s Head of Operations and Governance, Yvonne-Faith Elaigwu, has said.

She stated in a statement that cashless transactions can be used to bring a larger share of financial transactions under the purview of the banking system and increase the tax base in the process.

According to her, this could lead to an increase in government revenue, enable more effective fiscal policies, and contribute to overall economic growth.

She noted that in a cashless economy, businesses would also have access to customer data.

Elaigwu noted, “Every digital transaction tells a story, providing valuable insights about consumer behaviour.

“Businesses can tap into this data to understand their customers better, tailor their offerings, and make informed, data-driven decisions. This, in turn, can help businesses drive growth and foster customer loyalty.”

According to OnePipe’s Head of Operations and Governance, a cashless society has the potential to democratise access to financial services and enable businesses to have access to credit, save and invest.

She explained that a full transition to a cashless society required the concerted efforts of all stakeholders — the government, financial institutions, businesses, and individuals.

She stated, “It requires significant investments in digital infrastructure, consumer education, and robust regulatory frameworks to ensure that the transition is smooth, secure, and inclusive.”

She added that the country’s economy stood to benefit from increased formalisation and financial inclusion.

Elaigwu further asserted, “As we stand on the brink of this transformation, it is time to embrace the promise of a cashless Nigeria – a future where every transaction is seamless, where businesses are empowered by data, and where every Nigerian, regardless of where they live or what they do, can participate in and benefit from a vibrant and inclusive economy. It is a bold vision, but with the combined efforts of all stakeholders, it’s a vision that we can make a reality.”