CBN Lists Benefits Of Cashless Policy, Withdrawal Limits

The Central Bank of Nigeria (CBN) has said its cashless policy and withdrawal limits will help improve the country’s economy going forward.

While appearing before the House of Representatives on Thursday, the Deputy Governor, of Financial System Stability, CBN, Aisha Ahmad, said the cashless policy would help tackle money laundering and protect people from armed robbery, kidnapping, and terrorism financing.

She also stressed that the policy would encourage more people to come into the formal payment system and open up the rural areas to economic opportunities.

Ahmad added that the policy would reduce cash processing costs, minting costs, the cost of destroying old notes and the cost of moving the physical cash from place to place; the cost of protecting it.

She said: “We just want to reiterate the overall benefits of the cashless policy. It is to reduce cash processing costs, minting costs, the cost of destroying old notes and the cost of moving the physical cash from place to place; the cost of protecting it. All these costs are passed on typically to the banking public. Getting rid of these costs means that charges will be less in that respect.

“Also, this is an opportunity to promote Nigeria’s positive image from a money laundering perspective. Even the recently passed anti-money laundering law has limits for cash for a reason because cash is usually the medium by which some of these nefarious activities are done. Suffice it to say that the advantages around protecting people from armed robbery, kidnapping, and terrorism financing go without gainsaying.”

Ahmad recalled that during the COVID-19 pandemic period, the world saw the negative impact of physical cash as no one could go anywhere.

She added, “It was the electronic banking system that protected and served those below the poverty lines that could have had their livelihood at risk.”