When Governor Rabiu Kwankwaso, and the Emir of Kano State, Mallam Muhammad Sanusi II commissioned the eTranzact powered “Kano State eCommerce business improvement and empowerment project”, they triggered an economic chain reaction, initiating a potential e-commerce revolution that was unprecedented in Kano state, Northern Nigeria and the entirety of Africa’s largest economy.

The project which has taken off with a comprehensive registration of all traders in Kano state at all levels, identifying their type of business, products, and services, will see the next phase involve a gradual migration of traders to e-commerce in line with the State Government’s drive to be the leading electronic payment/transaction State, while also aligning with the Central Bank of Nigeria’s (CBN) cashless Policy initiative.

Kano State is the second largest industrial center in Nigeria and the largest in Northern Nigeria with textile, tanning, footwear, cosmetics, plastics, enamelware, pharmaceuticals, ceramics, furniture and other industries being key areas that have distinguished the state in the region. With continuity of the project in subsequent state administrations ensured by an edict of law in the state; Law No. 4 of 2014, every trader will need to register their business in order to carry out business in the state.

In many ways, this is a breath of fresh air coming from northern Nigeria, a region that has become notorious for under-development and terrorism. With this move, Kano state has demonstrated the sort of leadership that other Nigerian states and regions should seek to replicate because of the multiple advantages embedded in driving cashless societies, advantages that readily accrue to the government and entrepreneurs.

A very striking case for further cash reduction in society is the understanding that, according to experts, up to 1.5% of GDP goes into printing notes and running a cash-based society. Therefore, eliminating, as much as possible, the flow of physical cash in every economy will culminate in significant cost savings, freeing up financing for critical sectors of the economy.

Beyond this, however, there are other obvious benefits from a further digitization of the country’s marketplace. With business people around the country properly registered, a full database can be developed thus supplementing efforts aimed at keeping effective records, one of the challenges of African states. Stemming directly from this, proper records will translate into proper strategic planning by government officials, planning that will be fed by accurate facts and not mere intelligent guesstimates or conjecture.

Apart from its very direct role in further driving the nation’s cashless agenda, business mapping and listing will help ensure security in the market place as intruders and impostors can be more easily spotted and prosecuted. As this continues, the country’s credit rating by accredited institutions will improve, as will domestic resource mobilization by way of taxes. Also, more online malls will spring up in different parts of the country due to the more enabling environment created by an exercise of this magnitude.

Traders and entrepreneurs stand to gain a lot. An electronic approach provides economies of scale at reduced costs, also, tedious processes hinged around inventory management, payments tracking, and account reconciliation will be significantly reduced. Of course, when more investors come in due to the improved business climate facilitated by this exercise, the traders will be first in line to reap the rewards.

The world continues to evolve at a fast pace and Africa, hitherto left in the background, is now emerging as a global economic powerhouse. Nigeria is Africa’s largest economy and the preferred destination for Foreign Direct Investment (FDI) and firms who seek to expand their global imprint. Going forward, goods and services will be promptly required, meaning there is a case for more states to go digital as this is the only way to meet the new demand. Obviously, financial inclusion, which has been directly linked to economic performance by the IMF, will see a boost as more Nigerian states move to do business digitally.

Every state can have its own payments card scheme in order to provide highly specialized and custom built services for its inhabitants. Although there are political, social and economic dependencies, this is sustainable especially if specific state legislation is enacted in that direction, just like the Kano example. Also, demand is a given for any product that adds value to businesses in Nigeria.

While efforts are already being made by the National Identity Management Commission (NIMC) to produce National Identity cards for all citizens, there is no cause for any conflict or duplication of roles between an Identity Card and a payments card. This does not conflict with the objective of having highly customized payment and transaction cards for states within the federation, neither does it water down the need for a comprehensive database and set of records for each state that will feed the periodic strategic planning sessions by key stakeholders.

Bottom-line; more states need to closely examine the argument for a more technology-driven market place and make renewed moves to make their environment more favourable for the Nigeria that is fast emerging.

By Emmanuel Iruobe

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