Franktalknow had reported that the Central Bank of Nigeria(CBN) has limited cash withdrawal to N100,000 weekly, (from over-the-counter, point-of-sale machines or automated teller machines), while organisations can access N500,000 per week.
The memo signed by the CBN’s Director of Banking Supervision, Haruna Mustafa, directed banks to load only N200 and lower denominations into their ATMs.This means Nigerians will only be able to withdraw N20,000 per day from ATMs when the directive becomes effective.
The memo read, “The maximum cash withdrawal over the counter by individuals and corporate organisations per week shall henceforth be N100,000 and N500,000 respectively. Withdrawals above these limits shall attract processing fees of 5 per and 10 per, respectively.
“Third-party cheques above N50,000 shall not be eligible for payment over the counter, while extant limits of N10,000,000 on clearing cheques still subsist.
“The maximum cash withdrawal per week via Automated Teller Machine shall be N100,000 subject to a maximum of N20,000 cash withdrawal per day. Only denominations of N200 and below shall be loaded into the ATMs. The maximum cash withdrawal via the point of sale terminal shall be N20,000 daily.”
Franktalknow exclusively gathered reactions of Nigerians on the new policy with focus on the possible implications of the new naira redesign policy.
Following the new directive, the National President, Association of Mobile Money and Bank Agents of Nigeria, Victor Olojo, has said that point-of-sale operators would plan to protest as the policy was targeted at killing their source of livelihood.
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While speaking with newsmen, Olojo disclosed that the newly announced policy would have a negative impact on their business as it translated to the shutting down of PoS terminals.
He said, “This news is just breaking and a lot of PoS agents are already complaining bitterly. Some are calling for protests as this policy, which limits PoS transactions to N20,000, sends them out of business. Hence they have to return to their villages.”
Speaking on the impact of the new policy on individuals and the economy, the president said it would be really tough as Nigeria was still a cash-dominant society.
He said, “Nigerians should brace up, as this is a challenge that CBN is putting out to Nigerians to embrace technology. However, the difficulty would be felt as we still have a lot of transactions done with cash, especially those that are below the pyramid such as the market women and men who are petty traders, because this in essence means that once a bag of rice or flour is to be bought, which is above N20,000, it has to be via e-banking. Looking at it, how many of these people are technology-savvy?
“The CBN wants to achieve an agenda which is not exactly bad. However, a longer notice should have been given to those at the bottom of the pyramid. I believe that, eventually, the adoption would scale and people would have to get acquainted irrespective of the difficulty, embracing it in the long run.
“However, it is still very difficult because the technological infrastructure is still not there yet, and there are those who have had bad experiences with technology as well. The implication of this policy would slow down a lot and affect a lot of things, particularly those earning more than N20,000 daily.”
A POS Operator in Ifo Community, Bukola Adeola, says that the policy has several implications which are possibly adaptable.
In her words, “As business owners, we have other means that we can use to transfer money to our customers. We have USSD and bank apps. The policy is just to reduce excess money in circulation but due to my own particular business as a POS business operator, it actually has a side effect because, even on a daily basis people collect more than N500,000 on a daily basis but for the government policy, we have to adapt as it will affect people that are staying in rural areas even more.
“For POS business operators, we have an association called Association of mobile money and bank agent of Nigeria (AMMBAN). It is mandatory that all POS operators come under the umbrella of AMMBAN. With this new policy, it will even help to have members register under AMMBAN and also it will help have one uniform price because some people have turned this POS business to pure water business, in which some are withdrawing N20,000 for 100 naira but with this policy now we have limited cash at hand to use.
“So, we need to have a uniformed processing fee that every POS operator must follow and immediately we follow that uniform charges we make more money. For example, if someone wants to collect N10,000 I may say my charge is N300 and the person would has no choice to collect it because we have less cash to give out. The policy will help us to gain more money and it will also make many POS operators come under the AMMBAAN umbrella.
“Hence, to us, it’s a positive implication but the only thing that affects our own business is the little cash access to go and withdraw in bank N100,000 a day is too small for us as POS operators.
“The government should increase the money N500,000 per week and N200,000 per day.
The limited withdrawal is too small for us as POS operators to use for our business.
“Everything in Nigeria is politics. They are trying to avoid money in circulation due to the coming election. Even if more people will stop to withdraw in the ATM, it won’t be effective. If I withdraw 100 notes of N100,000 you will see how huge the money will be.
There were reactions on Wednesday, when several netizens tabled their reactions.
It was observed that many are skeptical on the issue, while some think the policy will augur well for the Nigerian citizens.
It was observed that the controversy on the said limited cash withdrawal policy borne on security considerations, businesses requiring 6 to 7 figure transactions, cashless policy, revitalisation of the currency, amongst others.
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A Twitter handler identified as ‘@Favouromunua’ said, “The new CASH WITHDRAWAL POLICY disadvantage is more than d advantages if dere is any,
1. It will encourage people to start saving their cash at home since they will be made to pay service charges on extra cash withdrawal
2. It will affect POS business that have help remove more 80% of unemployed youth
3. It I going to affect business owners as they are been restricted to the amount they can withdraw, I would have expected d govt not to put restriction on amount corporate organisation/business can withdraw.
Our economic team needs to think over dis again.”
Responding to the position, ‘G.C.Ozorjiri @COzorjiri’ said, “Young man, have you not heard of cashless transactions? Are Nigerians cursed? Must we be following the old order because majority do not want to evolve? Scarcity creates value. Is the Naira respected when it is spread on the floor at ceremonies?”
Another user identified as ‘Smaq @Moshood_Smaq said, “1, thief will easily visit you at your house if you’re saving your money at home.
2,it will help POS business more.
3,There’s no disadvantages in this new policy, except you’re a criminal!!”
While another user thinks the policy would push people into digitalisation.
User ‘Bosco @Bosco2baba’ posited that, “Point 1: Untrue: It will push people to do less of cash transactions and embrace digital banking which is easily traceable thereby, fights money laundering.
“Point 2: Untrue: POS and other Fintech will expand more and create more solutions and services.” He submitted.
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