The proposed reform of the CBN’s cash withdrawal limit policy for businesses and individuals has the support of financial professionals.
In separate interviews with newsmen on Wednesday in Lagos, they expressed this.
While the experts were speaking, Mr. Godwin Emefiele, Governor of the Central Bank of Nigeria, indicated that the government would not be stringent in implementing the cashless policy.
After informing President Muhammadu Buhari, Emefiele spoke with reporters in Daura, Katsina State, and stated that the policy would periodically be revisited to address public concerns.
The apex bank’s proposal to review the policy, according to Dr. Uju Ogubunka, a former executive secretary of the Chartered Institute of Bankers of Nigeria (CIBN), is a positive development.
“Proposing to review the withdrawal policy is the best because it’s not practicable due to today’s economic realities.
“What can N20,000 really buy in today’s Nigeria considering the steady rise in inflation rate in recent times?,” Ogubunka asked.
According to him, the federal government needs to pay closer attention to investing in vital infrastructure that would hasten the expansion of the cashless policy and broaden financial inclusion.
According to Ogubunka, such investments ought to be made in the hinterlands, where internet access is scarce and there are fewer high-tech phones available for use in such transactions.
“The CBN needs to continue to educate the people on the importance of having a cashless financial system and its implication to the economy,” 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.
“The redesigned notes policy is quite commendable as the naira is freely losing its value to other currencies.
“We expect the currency to over time begin to gain some value, as the apex bank is firmly in control and the level of arbitrage will abate,” he said.
He pointed out that the modified notes may be handled so that criminals would find it difficult to carry out their activities without being caught.
On December 6, the apex set a cap on the amount of cash that people and organisations may withdraw.
Third-party cheques for more than N50,000 would no longer be eligible for OTC payment, according to the CBN’s memo establishing the policy, but current clearing cheque limits of N10m would still apply.
The circular further instructed banks to limit ATM withdrawals to N20,000 per day and to only load N200 and smaller denominations into their machines. Additionally, PoS terminal withdrawals were restricted to N20,000 per day.
The policy had drawn criticism before it went into force on January 9, 2023.
