The proposed reform of the Central Bank of Nigeria’s cash withdrawal limit regulation for private citizens and businesses has the support of financial professionals.
On Wednesday in Lagos, they each stated this in separate interviews with the News Agency of Nigeria.
According to NAN, the experts commented in light of the CBN Governor’s remark that the government would not be strict in its implementation of the cashless policy. Godwin Emefiele.
After briefing Major General Muhammadu Buhari (ret.), the President, Emefiele told reporters in Daura, Katsina State, that the policy will be periodically reviewed to address public concerns.
The apex bank’s proposal to review the policy, according to Uju Ogubunka, a former executive secretary of the Chartered Institute of Bankers of Nigeria, is a positive development.
“Revising the withdrawal policy is the greatest idea because calling for its repeal is impractical given the state of the economy now.
“Considering the recent continuous rise in inflation, what can N20,000 truly purchase in Nigeria today?” Ogubunka enquired.
He pointed out that the Federal Government should focus more on funding vital infrastructure that would hasten the expansion of the cashless policy and broaden financial inclusion.
According to Ogubunka, such investments should be made in the hinterlands, where internet usage is relatively low and there are fewer high-tech phones available for use in such transactions.
The need for a cashless financial system and how it affects the economy must be continually emphasized to the public, he said.
Additionally, Mr. Okechukwu Unegbu, a former president of the CIBN, encouraged the top bank to not be strict in the implementation of the policy.
Unegbu added that there had already been a visible change in the country’s currency as a result of the unveiling of the new notes.
“Given that the naira is freely losing value to foreign currencies, the revised notes policy is rather praiseworthy.
Since the central bank is firmly in charge and the amount of arbitrage will decline, he added, “We expect the currency to begin to earn some value over time.”
He pointed out that the modified notes may be handled in such a way that criminals would find it difficult to carry out their activities without being caught.
According to NAN, the apex limited the amount of cash that people and organizations could withdraw on December 6.
Third-party cheques for more than N50,000 would no longer be eligible for Over-The-Counter payment, according to the CBN’s memo establishing the policy, while the current clearing cheque limitations of N10 million would still apply.
The circular further instructed banks to limit ATM withdrawals to N20,000 per day and to only load N200 and lesser denominations into their ATMs. A daily withdrawal limit of N20,000 also applied to Point of Sales terminal withdrawals.
The policy had drawn criticism before it went into force on January 9, 2023.