Some financial experts and businessmen on Tuesday said the Central Bank of Nigeria limit on cash withdrawal via the Automated Teller Machine may lead to a disruption of cash flow.
They spoke against the backdrop of the recent CBN policy which pegged the daily cash withdrawal from the ATM at $300 (N60,000) from N150,000.
They told the News Agency of Nigeria in Lagos that the policy was a contradiction of the cashless regime earlier espoused by the apex bank.
An economist, Dr. Evans Osabuohien, said the policy was a contradiction of the cashless policy of the CBN.
Osabuohien, who lectures at the Department of Economics and Development, Covenant University, Ota, Ogun State, added that the policy would have adverse effects on businessmen.
“The policy will lead to hardship in the economy and it will affect the confidence of businessmen in the banks,’’ Osabuohien said.
The don noted that the policy might force bank users to look for other ways of banking their money without undue restrictions.
“I think that this policy may force people to keep their monies in their houses with the attendant security risks,’’ the don said.
NAN reports that the policy was part of CBN measures to curb illicit financial flows out of the economy.
Another financial expert, Prof. Sheriffadeen Tella, believed that the policy was only going to be a temporary measure.
According to him, the directive is not a major instrument for the strengthening of the naira.
Tella, who lectures at the Department of Economics, Onabisi Onabanjo University, Ago Iwoye, Ogun State, said the policy was an attack on the CBN cashless policy.
“We are not running a full cashless economy yet. The CBN would have raised the bar higher for those who want to make huge transactions,’’ Tella said.
The economist noted that the policy would reduce cash flow in the economy, adding that it would ultimately stifle demand and lead to unemployment.
“If there is no cash flow, it stifles demand; productivity will fall, and this will lead to unemployment,’’ the don said.
The professor insisted that the policy remained a temporary measure, which he believed was aimed at preparing the economic system for a major policy statement by the apex bank.
A businessman, Mr. Okechukwu Udensi, said the policy would make financial transactions very difficult and time-consuming.
According to him, the ATM has made cash withdrawals very convenient and has reduced the risk of carrying cash.
“Some of us transact businesses in huge amounts.
“Even the banks charge us for electronic funds transfer within the banking hall. So, where is the cashless policy?’’
***What are your thoughts on CBN's decision to reduce daily cash withdrawals from ATM's from N150,000 to N60,000?
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If there is no cash flow, it stifles demand; productivity will fall, and this will lead to unemployment...
ReplyDeleteI BET THE CBN GUVNOR DOES NOT KNOW WHERE THE SHOE PINCHES...
This is a decision gone too far?. This man is chewing more than he can bite!. with an inefficiecnt internet system, failed POS, and ATM, this man want to suffer Nigerians in carrying out daily businesses with the attendant effect on living!. Please should someone tell this man to rescind its decision?. it is not funny o!
ReplyDeleteThe N60,000 limit is too small for business people,it will encourage people to look for alternative way of saving their money for quick and prompt access and withdrawal despite the security risk.Hence,I don't support the CBN directive.
ReplyDeleteI doubt if the CBN governor knows what he is doing.
ReplyDeleteAs far as I am concern, this is a temporary measure to check illicit cash flow that had bedeviling the economy. In some way this could check inflation because there is to much cash flow, this is reason why we have persistent increase of commodity price. I look forward to seeing CBN reversing the policy.
ReplyDeleteCBN is completely clueless. Both withdrawals and transfers. What is he thinking? People are suffering and you are making it worse so as to encourage banks to keep ripping customers off undisclosed charges. Buhari warn that man oooo. Warn am
ReplyDeleteHow much will it cost the CBN governor to take his family out on a decent dinner meals? If sixty thousand naira is enough then am with him all the way.
ReplyDeleteSomeone should please help ask whoever signed this policy into law the type of business transaction only N60,000.00 can facilitate these days? I am sure the CBN Governor does not know the prices of commodity items. I want to believe CBN buys all he needed for him at the expense of the government. This is policy will lead to many loss of lives through armed robbers who would be visiting homes and business offices now knowing that cash would be stuffed outside the banks now.
ReplyDeleteThis policy must be stopped now. Those who traffic our currency does not use ATM to this, they have their way with the bank officials in most cases. I beg let CBN stop fooling Nigerians.
Dnt they know that the previous maximum of 150,000 is even small.? It's better the scrap atm entirely than this rubbish.
ReplyDeleteyou all are muguuu
ReplyDelete****
here in UK maximum withdrawal is £300.00 from the machine
if you want more walk into the bank and get more from your bank
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or alternative you have 2 /3 banks withdraw from each bank
try and be security conscious moi people
CBN is doing right by International standard
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if it's business the online transfer with your token
simple as ABC
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ReplyDelete