Cashless economy policy of the Central Bank of Nigeria kicking off

// Latest Addition | Cashless economy policy of the Central Bank of Nigeria kicking off
Email to a friend Plain text Print version // Font size: Decrease font Enlarge font

All things being equal, come January 1, 2012, the cashless economy policy of the Central Bank of Nigeria will kick off.

It will, however, be practically operational in banks and businesses from the third day of January, being the first working day after the holiday.

By then, the question of whether the economic initiative would ever take off would have been answered; though there remains a myriad of other questions begging for answers.

The implementation of the policy has generated sundry reactions from individuals and organisations, especially because of the anticipated e-payment challenges.

A cashless economy is one where purchases and transactions are done mainly by electronic means and seldom by cash.  The policy, introduced by the CBN in April 2011, states that individual and corporate customers are restricted to a daily cash withdrawal and lodgement of N150,000 and N1m respectively.

By implication, individuals, who make cash withdrawals above the limit will be charged N100 on every N1,000, while a corporate organisation that exceeds the limit will be charged N200 on every N1,000.

Apparently relying on its commercial stamina as Nigeria’s business hub, the CBN will commence the pilot scheme in Lagos State.

But as sophisticated as the residents of the metropolis are perceived to be, the level of awareness about this policy, checks have shown, is still very low.

Subsequently in June, the policy will commence in other major cities in Nigeria such as Aba, Port Harcourt, Abuja and Kano. According to the CBN and the Bankers Committee, the economy will be the better off with the policy.

For instance, it will reduce the dominance of cash in the system, thereby reducing cases of armed robbery and cash-related crimes.

It will moderate the cost of cash management; encourage the use of electronic payment channels and reduce lending rates to further make credit accessible to big and small businesses.

The committee’s findings showed that running a cashless economy could save the CBN about N192bn, which is the projected direct cost of managing cash for 2012.

While Nigerians could not deny the need to prevent too much cash in circulation among other benefits of the scheme; many still believe that the cash limit is too low and query how the CBN arrived at the benchmark.

Some also express the need for a gradual transition to the new policy order; while others think that Nigeria is not even ripe for it. As laudable as the cashless idea is, an assessment of the usual inconsistencies in the operation of the Automated Teller Machine leaves many stakeholders wondering if the same system could produce a better result.

Realising this potential threat, the CBN recently directed banks and independent service providers to deploy more ATMs and ensure their efficiency to ensure a smooth implementation of the policy.

It stressed that all ATMs (off-site and on-site) shall have a minimum uptime of 95 per cent going forward. The directive prescribed sanctions for failure to comply.

Resolute about seeing the scheme succeed, the CBN had projected the deployment of 40,000 point of sale devices in Lagos and plans to increase the number to 150,000 by the end of next year.

The bank said that it had the assurances of all the bank chief executives on the take-off of the policy, adding that the migration to electronic channel was part of the engine of change in the economy.

Tagged : BIG-KLEF, Bishop Isaac Owusu Bempah, Photos of Elikem the Tailor

Headlines Newsview all

Shocker! Nigerian Policeman Gave Us Guns Rob Victims - Joel Ojo

The police in Lagos say they have arrested a five-man robbery gang led by a fake policeman in the Abbatoir, Agege area of the state. The ... Full story

Exposed! UK Properties Allegedly Owned By Embattled Diezani Alison-Madueke (Photos)

Some photos have emerged showing some houses reportedly owned by the former Minister of Petroleum Resources, Diezani Allison-Madueke.  Checkout photos of some of the UK properties ... Full story

Heartless! I Stole Baby To Have My Bride Price Paid - Onyebuchi Jennifer

The Lagos State Police Command on Tuesday paraded Onyebuchi Jennifer, who was arrested in Anambra State for stealing a baby in Lagos State. She said she ... Full story

Teenagers Suffer Memory Loss After Weeks In Confinement

The two teenagers, who went missing in the Solomade, Ikorodu area of Lagos State while running errands for their parent, have been found. PUNCH Metro learnt ... Full story

Shocking!! Suspected Suicide Bomber, Charles Okah Attempts Suicide In Court

A suspected mastermind of the October 1, 2010 bombing in Abuja, Charles Okah, caused a row, by attempting to commit suicide during Tuesday’s proceedings in ... Full story

ISIS Terror Group Stoning A Man To Death (Graphic Images)

Fighters of the Islamic State in Syria recently stoned a man to death publicly for unknown reasons.  Media platform, Terror Monitor shared photos of ISIS members ... Full story

Bomb Blast Hits Buhari Housing Estate In Yobe, 16 killed

At 16 people were reportedly killed on Wednesday morning when a suicide bomber attacked Buhari Estate in Damaturu, Yobe State, northeast Nigeria. Reports say the attack ...

Shocking! INEC Forged Bukola Saraki's Senate Election Results (Evidence)

New reports have revealed that Senate President, Bukola Saraki's election results may have been forged by the officials of the Independent National Electoral Commission.  Senate President ... Full story

EFCC Grabs Diezani Alison Madueke's Business Associate

The Economic and Financial Crimes Commission (EFCC) yesterday arrested Jide Omokore, owner of Atlantic Energy, who is said to be a business associate of former ... Full story

Army Arrest Boko Haram Financier With Huge Wads Of Naira Notes (Photos)

Colonel, Sani Kukasheka Usman, Acting Director Army Public Relations has released an official statement on the recent apprehension of one of the Boko Haram financiers ... Full story

Popular Celebrities That Have Killed People

Born Calvin Broadus, Snoop Dogg is a legend in hip hop and pop culture. Snoop’s hip hop career exploded when he was signed with Death ... Full story

Comment on: Cashless economy policy of the Central Bank of Nigeria kicking off

Rate this article


Breaking News

Sunday Oliseh And Vincent Enyeama Clash in Belgium

All may not be well between the Head Coach of the Super Eagles and the team's goalkeeper according to latest reports.  Head coach Sunday Oliseh and ... Full story

Ahmed Musa Named New Captain As Oliseh Kicks Out Enyeama From Super Eagles Camp

Super Eagles coach, Sunday Oliseh, has expelled goalkeeper Vincent Enyeama from the team's camp in Belgium.  Nigerian Eagles captain, Vincent Enyeama has been kicked out of ... Full story

Caught In The Act! What Is 2Face Idibia Staring At? (Photo)

Nigeria's super celebrity couple, 2Face and Annie Idibia are always spotted together, especially at red carpet events as they both publicly display their true love ...

Eve Esin, Segun Arinze Engage In Eye-ball Competition (Photo)

Veteran actor Segun 'Eye-rinze' (Arinze) and actress Eve Esin, have something in common. The two entertainers have big, bold eyeballs which is often used to make ...

Democracy Worst Form Of Government - Freeze

Popular On-Air-Personality, Freeze, has expressed his displeasure over situations in the country, especially since the return of democracy in 1999. Freeze believes democracy is the worst ...

Muna Abii Makes Portrait Of Mum (Picture)

Female rapper, Munachi Abii, has shown another side of her many people do not know of. The former Most Beautiful Girl in Nigeria shocked many when ...

Actresses Claiming Sexual Harassment In Nollywood Should Tell Their Real Story- Sonia Ogiri

Ask majority of the up and coming actresses and they would all point to constant sexual harassments from the producers as the main reason they ...

I Am Tired Of Nigeria - Paul Okoye

One half of P-Square group, Paul Okoye, is among millions of Nigerians who are frustrated with happenings in the country. Several Nigerians have wondered why the ...

John Dumelo Donates Cash To Ailing Odoi Mensah

Ghanaian actor, John Dumelo has donated an undisclosed amount of money to the ailing former President of the Ghana Actors Guild, Odoi Mensah, has ...

Amazing! See The Birthday Cake M.I Abaga Got From Glo Mobile

Today, 6th of October marks the birthday of the self-acclaimed African rapper number one, Jude Abaga popularly called Mister Incredible,M.I.  Chocolate City Chairman, M.I Abaga is ... Full story