Lagos, 6 other states control 90% of cash transactions in Nigeria – CBN

Finance Monday, May 27, 2013



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The Central Bank of Nigeria (CBN) has said that Lagos and six other states control about 90 per cent of cash transactions in the country. The other states are Rivers, Anambra, Abia, Kano, Ogun and the Federal Capital Territory (FCT).

CBN Deputy Governor, Operations, Mr. Tunde Lemo, who disclosed this, said this was the reason why the abovementioned states were been slated for the second phase of the cash-less project billed to kick off on the July 1st. Acknowledging that there have been and there are still challenges with the cashless project, he said most of them are being resolved.

He listed one of the major challenges to include interconnectivity in some of the clusters, which he said is being addressed.

Lemo said that besides the use of alternative channels of transactions such as Point of Sales (PoS), the cashless project would be driven through the telephone. Nigeria is second in number of mobile phone users in sub Saharan Africa after South Africa, which is also the largest economy in the region.

Lemo also said the cashless policy had been successful in Lagos, adding that the number of Point of Sale (PoS) machines in Lagos has increased significantly from about 5,000 when the policy took off last year, to over 150,000.

"We still have a few challenges, but if I look back, I really would say that we have done a lot to transform the payment system in Lagos through PoS," he said.

The cashless policy, whose implementation began in Lagos in January, last year, is aimed at reducing the dominance of cash in the system. The policy specifies penal charges for individuals and corporate organisations that want to withdraw or lodge cash above prescribed limits. Under the policy, the CBN pegged the daily cumulative cash withdrawal or deposit limit for individual accounts at N500,000 per day and N3 million per day for corporate accounts.

Just a week ago, the Chief Executive Officer, Electronic Payment Providers Association of Nigeria (E-PPAN), Mrs. Onajite Regha, said the coming on board on the next phase of the cash-less policy in July may raise the value of electronic funds transfer in the country to N160billion per day by the end of the year.

The E-PPAN boss, who spoke in Lagos, said the current value of electronic fund transfers - put at N80billion per day by the CBN, would most likely double because there would be a lot of changes, which would compel people to use e-Fund transfer channels.

The Nigeria Interbank Settlement System (NIBSS) is handling transactions worth about N20billon daily, while the Nigeria Electronic Funds Transfer is conducting about N60billion worth of transactions daily.

NIBSS provides the infrastructure for automated processing, settlement of payments and fund transfer instructions between banks, discount houses and card companies in Nigeria. It is owned equally by all licensed banks in Nigeria, and the CBN. Discount houses operating in Nigeria also hold substantial shares.

A NEFT payment is an irrevocable fund transfer instruction.

http://odili.net/news/source/2013/may/27/324.html

Interesting topic u hav, but u v spoiled it with ur stupid tribalism. Ifele mee gi

Zona.com:
Interesting topic u hav, but u v spoiled it with ur stupid tribalism. Ifele mee gi

Excactly!

Ok....but I saw something like Ogun...issorait, I want to buy a car of 3 million as an individual, how do I go about it?

Ramnon.2:
Interesting data for Anambra and Imo, both 99.9% Igbo,and among places rendered zero-economy, barely 40 years ago.
Lagos is not unexpected, being the economic power of Nigeria for which Igbos deservedly hold a significant %
PH, Abuja and Kano also have significant Igbo economic presence
I am sure that Tunde Lemo (Yoruba man) sneaked in OGUN STATE into the picture. Dry place, industrially speaking, save for Agbara.

^^^Isn't Ogun where Dangote has one of his factories?; and i seem to remember some other factories of multi-nationals being sited there as well. The state is also taking advantage of its proximity to Lagos (Agbara industrial est' and Lagos commuters), so i don't think it being one of the 6 has anything to do with Lemo.

Though i must say i'm impressed with Anambra and Abia states; they've risen above the odds and are up there with the big boys inspite of all the marginalization they've faced over the decades.

Yeske!:
.I wonder how Ogun enter o.

Lemo is from Ogun. He is playing the home game.

IGBO-SON:


^^^Isn't Ogun where Dangote has one of his factories?; and i seem to remember some other factories of multi-nationals being sited there as well. The state is also taking advantage of its proximity to Lagos (Agbara industrial est' and Lagos commuters), so i don't think it being one of the 6 has anything to do with Lemo.

Though i must say i'm impressed with Anambra and Abia states; they've risen above the odds and are up there with the big boys inspite of all the marginalization they've faced over the decades.

ALL THE MONEY GENERATED IN OGUN ARE REPATRIATED TO LAGOS, KANO (DANGOTE) OR ABROAD (MULTINATIONALS)

Umu Igbo kwenu

Why is Enugu the pride of the east not on the list ?

Afam4eva:
Excactly!

Hey my post is been deleted. I only said this is a good news.thats it! I heard u re among the moderatotor can u check why my post was hifden thsk

CBN to kick-off second phase of cashless project in Lagos and six other states.

^^ Now this would have been an appropriate topic for the thread. Imagine the heat the wrongly chosen topic is already generating; instead of discussing the advantages/disadvantages of this project, peeps have totally turned it to a tribal warfare and chest-beating venture.

I read a news report of this nature sometime ago and ogun state was not included in the findings. How come ogun state is in this one?

This is a WRONG title for a good post.

This list can't be correct , the one compiled by osun defender must be the correct one.

*patiently waiting for aregbesola's p.a to post the authentic list from his facebook page*

Some states should be annexed by these mega and powerful states.

Interesting. No Ogun on the initial report and it suddenly shows up here. Mago mago.

Ramnon.2:


ALL THE MONEY GENERATED IN OGUN ARE REPATRIATED TO LAGOS, KANO (DANGOTE) OR ABROAD (MULTINATIONALS)

you meant there are no banks in ogun where the money can be kept for transactions? I don't know how you lots reason. Ogun is Nigeria's industrial hub as Lagos is Nigeria's commercial hub. if you are angry, look for a wet transformer to hug.

Adelaide2: Interesting. No Ogun on the initial report and it suddenly shows up here. Mago mago.

This report was released early this year before it was suspended. when I get it I will show it.

Ramnon.2:


Lemo is from Ogun. He is playing the home game.

By: NSE ANTHONY-UKO on July 1, 2013 - 1:38am

After 18 months of running a pilot scheme of the cashless banking policy in Lagos State and several postponements of its extension to other states, the Central Bank of Nigeria (CBN) has, finally, extended the policy to Abuja and five states namely Abia, Anambra, Kano, Ogun and Rivers. The policy takes effect from today.
According to the initial timeline released by the. CBN, the policy was to be extended to other parts of the country in June 2012, before it was postponed to January 1, 2013, and again to July 1, 2013. The CBN had explained that the postponements were due to some infrastructure challenges. The policy places daily limits on amounts that can be withdrawn and deposited by customers over the counter and, upon exceeding. such limits, customers would be required to pay certain charges for cash handling on the excess amounts. For instance, individuals have a daily withdrawal and deposit limit of N500,000 while corporate bodies have N3 million. When these limits are exceeded, individuals will be charged 2 per cent of the excess amount withdrawn and 3 per cent of excess deposit, while corporate bodies will be charged 3 per cent of excess deposit and 5 per cent of excess withdrawal.
Also cash-in-transit lodgment and cash evacuation services will no longer be available to customers or merchants.
Banks had already started sensitising their customers on the spread of the policy to other states, prior to the takeoff of the policy. One of the banks in its message to customers noted that the “limits apply so far as it involves cash, irrespective of channel, that is, over the counter, ATM, and third-party cheques cashed over the counter, etc. For example, if an individual withdraws N450,000 over the counter, and N150,000 from the ATM on the same day, the total amount withdrawn by the customer is N600,000, and the service charge will apply on N100,000 - the amount above the free daily limit of N500,000.
The apex bank which had earlier in the year announced the spread of the policy to four states -- Kano, Anambra, Abia states and the Federal Capital Territory (FCT) -- had added Rivers and. Ogun for the next stop of the cash-lite policy. Exemptions have however been granted on lodgments and withdrawals for accounts operated by embassies, diplomatic missions, multilateral agencies, aid donor agencies, ministries, departments and agencies of government (revenue collections only), microfinance banks (MFBs) and primary mortgage institutions (PMIs). According to CBN’s head, shared services, Chidi Umeano, the states and the FCT were chosen because of the large volume of cash transactions in some of their major cities such as Aba, Kano, Port Harcourt and
Onitsha. The cashless policy, which. implementation began in Lagos in January last year, is aimed at reducing the dominance of cash in the system. The policy specifies penal charges for individuals and corporate organisations that want to withdraw or lodge cash above prescribed limits.

http://leadership.ng/news/010713/finally-cashless-policy-goes-live-abuja-5-states

Rich states of Nigeria

from my empirical result, its now i know that the most tribalistic tribe in Nigeria are ibo's. they just dull nairaland as if sparepart they will sell is in here. all they know is to either attack the north or south west. well you guys can't be blame because bird of a feather flocks together.

This big for nothing mud enclave is not listed

speechless

fagbalex:
from my empirical result, its now i know that the most tribalistic tribe in Nigeria are ibo's. they just dull nairaland as if sparepart they will sell is in here. all they know is to either attack the north or south west. well you guys can't be blame because bird of a feather flocks together.

go to hell u idiot

"The Central Bank of Nigeria (CBN) has said that Lagos and six other states control about 90 per cent of cash transactions in the country. The other states are Rivers, Anambra, Abia, Kano, Ogun and the Federal Capital Territory (FCT)"
i remember i said so on this forum but was called names

"The Central Bank of Nigeria (CBN) has said that Lagos and six other states control about 90 per cent of cash transactions in the country. The other states are Rivers, Anambra, Abia, Kano, Ogun and the Federal Capital Territory (FCT)"
i remember i said so on this forum but was called names