Following the Central Bank of Nigeria’s new cashless policy on withdrawals and deposits, which charges 1.5 per cent interest on withdrawals and deposits of N500,000 and above, Nigerians across different sectors have cried out, describing the policy, though a right step in the right direction, as a burden, introduced for implementation at the wrong time.
“I understand what the CBN is trying to do, which basically is to encourage people to do more cashless transactions by using their ATM cards, POS terminals for transfer, amongst others, but I believe the timing is wrong.
“CBN is trying to avoid printing of cash as much as it used to do, but introducing such policy now is wrong, particularly, now that every kobo counts to people. It is wrong now that Nigerians are beginning to see that banks make so much money at their expense. If you do this again, people will feel there is a disconnect between the CBN and the banks. It should look for other ways, rather than charging people for deposits and withdrawals, which is not a good idea. We are not happy with it at all, because of the timing.”
-Managing Director, Capital Bancorp Securities Ltd, Mr. Aigboje Higo.
“I applaud the CBN’s efforts at encouraging a cashless economy, but I am gravely concerned about the impact assessment of its implementation strategy, especially in a biting recession, which bank consumers are currently experiencing.
“Any penalty charges levied on deposits or withdrawals, especially at this period, is an extra burden on the already overcharged and heavily exploited bank customers. An effective cashless economy requires seamless, real time, 24/7 functioning infrastructure, which is currently not the case in Nigeria’s experience. That is why consumers grapple with bank system shutdowns, non-dispensing ATMs, frequent network failures, significant e-frauds and poor customer service across the sector.
CBN policies should be geared towards improving access and promoting inclusion; both of which the new directive negates, and not creating more problems for the exploited customers.
“If the CBN’s genuine motive is truly to force compliance, the apex bank should explore incentives and not disincentives. Instead of penalising cash transactions, why not introduce up to five per cent interest to accounts that achieve minimum of 80 per cent cashless transactions monthly?
This will not only encourage existing customers to go cashless, it will also attract a great percentage of cash circulating in the informal sector into the banking system, thus improving statistics on access as well as deepening inclusion.”
– President and Founder, Consumer Advocacy Foundation of Nigeria, Sola Salako.
“The reintroduction of cash charges on deposits and withdrawals is not a wise move at all by the apex bank at this critical period. If you look at the standard of living of many people now, how many people have enough cash, not to talk of depositing some in the banks? If the CBN is trying to encourage the cashless payment system, it should consider the earning potential of many people. Fine, the policy may be favourable to high profile income earners, but what of the low income earners, who have little or nothing to sustain themselves? Charging them for depositing the little they have is unfair and unjust. I think the CBN should look into this new policy very well, so that the masses won’t really bear the burden alone.
– President, Nigerian Guild of Editors, Mrs. Funke Egbemode
“It is a welcome development as it is expected to curb crime but it should have come later. I understand that in developed countries, people don’t carry cash all around or queue across the counters for long hours for banking transactions, but we are not in same situation with them. Inasmuch as it was a move to curb inflation rate, the peoples’ feelings should be put into consideration also.”
– CEO, Nesbet Management Consulting, Dr. Alaba Olusemore.
