The Central Bank of Nigeria on Friday said it would continue to implement the cashless policy in line with its mandate to ensure an efficient payment system.

The CBN Governor, Mr Godwin Emefiele, said this while briefing journalists shortly after the Monetary Policy Committee meeting.

He said that contrary to claims in some quarters that many Nigerians would suffer the negative impact of the policy, only about five to 10 per of bank customers would be affected.

The apex bank had in a circular to Deposit Money Banks stated that from Wednesday, September 18, it would impose three per cent processing fees on withdrawals and two per cent processing fees on lodgements of amounts above N500, 000 for individual accounts.

For corporate accounts, the apex bank in the circular said that DMBs would charge five per cent processing fees on withdrawals and three processing fee on lodgements of amounts above N3m.

The House of Representatives had on Thursday through a resolution directed the apex bank to suspend the policy.

But responding to the development, Emefiele said if the Nigerian economy was to compete effectively with those of developed countries, a payment system that encourages the use of non-cash channels was desirable.

He said that before the cashless policy was first inaugurated in 2012, a lot of stakeholder engagements were done to sensitise Nigerians on its benefits.

He said the policy was suspended in 2014 to allow more payment channels to be developed by Deposit Money Banks.

The governor said that since the policy was suspended, currency management cost had continued to increase year-on-year at an average annual growth rate of 33 per cent.

However, he said the bank had continued to provide alternative channels, adding that people had embraced it.

He said Point of Sale transactions had moved from N48bn in 2012 to N2.2tn while electronic transfer had moved from N3.8tn in 2012 to N80.46tn in 2018.

Emefiele said, “Since the policy was first launched, currency management costs have continued to increase year-on-year at an average annual growth rate of 33 per cent.

“Notwithstanding, electronic transactions have increased within the economy. We have provided alternative channels and people have embraced it.

“This is a strategic timing of these actions because on Monday, September 23rd, the mutual evaluation by GIABA (Inter-governmental Action Group Against Money Laundering in West Africa) on the country’s anti-money laundry and CFT (Combating Financing of Terrorism) regime will begin.

“Passing the mutual evaluation positions Nigeria as a safe and credible destination for financial transactions across the world.

“GIABA will be in Nigeria to access the rate at which Nigeria has embraced anti-money laundry and CFT regime. It is important that we display and show to them that Nigeria is indeed in conformity with their practices as enshrined in their anti-money laundry and CFA laws.”

The apex bank boss said if the CBN did not implement the cashless policy, credit cards owned by Nigerians might not be used abroad.

On the Value Added Tax, he said the MPC supported the decision of the Federal Government to increase the rate from five per cent to 7.5 per cent.

He said with Nigeria having one of the lowest VAT rate in the world, and faced with fiscal challenge, the best way to shore up revenue was to increase tax.

He said, “The MPC endorsed the increase in the VAT rate from five per cent to 7.5 per cent. The government has the responsibility to fend for everybody.

“In fending for everybody means that it has to spend money to provide infrastructure – roads, airports, different things that will improve the lives of its people.

SOURCE: https://okfiscal.com/cashless-policy-will-only-affect-10-of-nigerians/

NIGERIA amaka, BUHARI amaka, APC amaka, CBN amaka, NAIRA amaka.

Only waiting for when Naira will equal the dollars rate

Om

aaronson:
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CBN's cashless policy is a crazy one. You are supposed to encourage cashless economy through mopping up of cash in circulation, which is even giving incentives and not extorting through charges on deposits. Withdrawals might be charged but not cash deposit.

This guys aren't even ashamed to tell us after their useless policies upon policies only less than 10% of Nigerians have access to 500k.... and after implementation what will they do with the generated revenue from this policy and that of VAT increment?? enough looting spree and 2023 I guess..... Naija don cast

This naija don taya me ooo

Till then


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Capitalism is bad for a Third world oil country like Nigeria.

Welfarism is what is needed in Nigeria.


I wonder how Nigeria will look like 20years from now.


The rich is getting extremely richer and the poor getting poorer

But the poor people would complain the most

Let's go cashless abeg...long overdue sturvs. Even tintini Kenya no dey too carry cash upandan, we dey carry big strong head dey vex for policy wen go make life easier in the long run.
Embrace the future

Thats the much reason they quickly stopped it. They are only quick and effective when it come to what will affect them.

10% or no % percent at all!!!

You guys are doom under that Mundane Daura Man...!

Though may be difficult for some to understand because they've been misled by enemies of progress but the fact remains that this policy is new and may be hard in Nigeria but it's the best.
The western world are using cashless policy and is even better and good for prompt transactions .
It reduces excessive spending.
Allow minimization of fiscal expenditure .
In America , the least u can withdraw on the atm a day is $400 cash.
While ur other transactions is based on cashless transfer of transactions. Though u are entitled to come the other day and withdraw again, it will not go beyond same $400.
In all, there will be no development and advancement if we still retard ourselves with the old method of doing things in Nigeria.
Those in Diaspora understand what i am saying.
May God Help us in Nigeria.

mrvitalis:
But the poor people would complain the most

Yes because nobody is poor forever.

Yet an poor people dey shout pass for Twitter. Yes! Poor people. Having a smart phone and data doesn’t mean you’re rich

ArticleBeast:

Yes because nobody is poor forever.

If u can understand why they are doing that then u would likely be poor forever

Those Who will suffer it more are the average and poor Nigerians



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.

Do u expect them to tell us that all of us will be affected?


They know wat the masses would like to hear

it will affect 10% of Nigerian?.. Does that implied that only 10% of Nigerian are rich, while d rest are poor?
The example they gave us is that, if we deposit 501,000 the 2% will only be on the excess 1000, amounted to #20 only...
what about if someone deposited 5 millions n the charge will b on the excess 4.5 millions (4,500,000*2% = NGN90,000)...
So bank will collect 90k of my hard earning just for deposit n for the sake of cashless policy?
... furthermore, just of recent FG announced that there will be charges on all online transactions.. why?..
don't forget also forget about VAT of 7%?

In another words, only 10 percent of Nigeirsns can afford 500k 3m upward . We are indeed the capital of poverty

He said with Nigeria having one of the lowest VAT rate in the world, and faced with fiscal challenge, the best way to shore up revenue was to increase tax.
Have the governor asked how VAT are charged in those countries? Is he aware that some SME's are exempted from VAT in those countries?

Some people who have one naira in their accounts are wailing about the cashless policy. May God dash them money so they can keep quiet

saying Nigeria has the lowest in terms of tax in d world is foolishness. is it d same infrastructure and government services we are enjoying.
God will punish dis government for inconvenient u are given nigerians.

Dave0116:
This guys aren't even ashamed to tell us after their useless policies upon policies only less than 10% of Nigerians have access to 500k.... and after implementation what will they do with the generated revenue from this policy and that of VAT increment?? enough looting spree and 2023 I guess..... Naija don cast

And there's a zombie there that has even concurred that many Nigeria's don't transaction up to 500k