In Nigeria, almost everything is paid for in cash. In supermarkets, cheques are hardly accepted, and when applied, delivery of goods and services is only completed when the beneficiary gets value from the bank. So, Nigeria has remained a cash-based economy, despite the growth in the country’s banking sector and billions of naira invested in electronic banking over the years.
But all these are about to change with the take off of the cash limit policy introduced by the Central Bank of Nigeria (CBN). Under the policy the minimum cash lodgement and withdrawal by individuals and corporate organisations are pegged at N150,000 and N1 million daily. The policy took off in Lagos on January 1. It will, subsequently, be implemented in Abuja, Port Harcourt, Kano and Aba, in the first instance, and extended to other parts of the country at a date to be determined by the Bankers’ Committee.
CBN adopted this measure to curb dominance of cash in the economy, with its attendant implication for cost, security and money laundering, among others.
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