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This is how Nigerians are reacting to the CBN’s new policy on cash withdrawals

CBN health intervention fund gets new interest rate by March 2012, Nigerian banks’ non-performing loans drop significantly by 41% in 2019, External reserves decline by over 8% in 3 months, Nigeria’s external reserves increase by $1.36 billion in 13 days

The Central Bank of Nigeria (CBN) recently announced a new policy that mandates deposit money banks and other financial institutions to ensure that over-the-counter cash withdrawals by individuals and corporate entities do not exceed N100, 000 and N500, 000 respectively per week.  

Reactions have since trailed the development as Nigerians didn’t fail to express their views on what they perceive of the policies. 

On the one hand are Nigerians who welcomed the development, hoping that the policy which CBN claims are in line with its cashless policy will encourage more Nigerians to use alternative channels to carry out their banking transactions. 

On the other hand, some Nigerians have criticized the policy, saying that it will translate to a negative effect on daily businesses. 

Towards a cashless economy: Some Nigerians credit the CBN for coming up with such a policy at a time when the election is fast approaching and lots of criminal activities are expected to go on.  

  • Kalu Aja, a financial expert feels that the CBN’s actions on the Naira redesigning and limited cash withdrawals are fine as long as POS, mobile money, and other noncash transactions are offered at reduced prices. He, however, suggests that other options; such as writing a cheque, transfer, or mobile banking – which are trackable, should be utilized.  

Doctor Penking said the policy will put a hold on wanton display of phantom wealth as transfers will now be a preferable option. 

Wole Oluyemi opines that the move is tilted towards attaining a cashless society, especially in cities as is done in advanced countries. 

Curbing criminality: In other social media platforms, Misterone explained that the policy will stop those who are thinking of making brisk business by collecting old notes from criminals at high rates than going to the ATM to withdraw new notes. 

He said, “When the redesigned naira notes come out, some people will start selling it. To prevent or restrict this to the barest minimum, the CBN decided to implement this policy. Also, note that denominations above N200 will not be inside an ATM machine. Therefore for those who are thinking of making brisk business by collecting old notes from criminals at high rates than going to the ATM to withdraw new notes, sorry is your middle name.” 

Push for eNaira: Meanwhile, some believe that the development is geared towards improving the acceptance and usage of eNaira in the country. 

Olumide Adesina said the limits set by the CBN are also part of a broader push to encourage the use of the eNaira.  

In his opinion, David Hundeyin said the essence of the policy is to tax cash transactions. 

 

Another perspective: on the other hand, some Nigerians opine that the development is believed to hold lots of harm more than good.  

  • Abiyos Roni thinks the policy will cripple a lot of SMEs, as lots of people are yet to adapt. He said, “The CBN cashless policy will crippled a lot of SMEs, and millions of people will lose their savings. I pity old people who are not wise enough in cashless.” 

 

A user identified as Matermaestro of social media doesn’t believe the policy would stay for long. 

He said, “A substantial part of this largely ridiculous policy will be reversed by the next administration. I wonder why most people are beating themselves up. I am laughing here because I am more than a hundred percent sure that it won’t last more than six months.  

... This is how Nigerians are reacting to the CBN’s new policy on cash withdrawals Read More on ... Naijaonpoint.

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