The Controller of Technical at the Nigerian Insurers Association, Soji Oni, has said the low level of compliance with building insurance is triggering significant economic losses.
Oni disclosed this at the third edition of the Africa cashless payment system conference in Lagos.
Speaking at the conference themed, ‘Building Safer Cashless Economy and Business Communities’, Oni said the lack of building insurance has caused a lot of economic loss, saying insurance is essential to restore these losses.
“The Federal Government expects every building, being a public building, to have a minimum of two insurance covers; that is, the occupier’s liability and the fire and special peril cover,” he disclosed. The compliance level of insurance cover on buildings is still low, hence this is why enforcement is very germane,” Oni noted.
Speaking on the role of telecommunications infrastructure in advancing the cashless payment system, the Vice Chairman of the Nigerian Communication Commission, Aminu Maida, said the commission played an essential role in expanding digital payment systems.
Maida maintained that as the infrastructure and services provided by the telecom companies form the backbone of mobile financial services, increasing internet penetration through telecom services allows for more advanced mobile money applications and online banking platforms.
“The NCC plays a critical role in advancing telecoms infrastructure to support the digital financial ecosystem and aims to bridge the access gaps across the country, creating the enabling environment for the provision of ubiquitous connectivity which aligns with our goal of building a safer and more secure cashless economy,” he said.
Maida, represented by the Commission’s Zonal Controller, Tunji Jimoh, noted that the National Broadband Plan 2020-2025 was a strategic framework that enhances internet access in urban and rural areas.
“Its goal is to provide download speeds of 25 megabits per second in the urban areas, 10 megabits per second in the rural areas, covering 90 per cent of the population and the penetration rate of 70 per cent.
“This directly contributes to the broader cashless economy by ensuring reliable and high-speed internet is available across Nigeria. The USSD code allows users to access mobile money services without requiring internet access, which is especially important for rural areas. NCC allocates codes to financial institutions such as FinTech through licence exemptions,” he stated.
Meanwhile, the Chairman of Foreign Investment Network UK, Oluyinka Fayomi, in her opening remarks said the potential of a cashless system to transform lives, especially for those previously excluded from financial services, is profound.
Fayomi noted that the cashless Lagos initiative has increased digital transactions and reduced cash handling costs significantly.
“Across Africa, mobile money has flourished with 548 million registered accounts, proving the continent’s readiness for digital transformation. These achievements highlight the impact of a cashless system on economic growth and inclusion,” Fayomi added.
