Good People, I am withdrawing my public support of the recently unveiled Central Bank of Bank’s policy on cash withdrawal limit. I had supported that initiative on the construct that it would help Nigeria deal with its tax problems. Yes, while we continue to think we can rise with oil and gas, the ascension for Nigeria will only come, when we can generate decent taxable economic activities to finance the future in education, healthcare, etc.

But after learning how Nigeria was unable to reconcile how much was collected on stamp duty, I see no reason to believe that inconveniencing the citizens, on how they withdraw and spend their money, via an additional regulatory layer beyond what has existed for years, will advance the nation. If stamp duty which is collected by banks electronically cannot be traced, and reconciled, through the support of the Central Bank of Nigeria, there is no basis to believe they can become more efficient on tax collection with the new cash withdrawal policy.

So, let us eliminate  the problems, and hope one day, Nigeria will have the right people to do simple things RIGHT. I worked in the banking sector in Lagos. I worked in the most classified and most guarded department in the bank. The bank’s software automation unit is the heart of any bank. Only the most trusted, vetted and selected get closer. Why? You have access to the bank’s general ledger You are the SUPER-admins of all admins in the bank.

Why am I going there? A simple subpoena from the National Assembly will make banks produce the conflicting figures in 6 hours. Just a new line of code from those geeks and you have the numbers. The government can then reconcile. 

But I do not think that is the real problem. My conclusion is that banks have done their jobs, remitted the money, but people stole it within the government, and some did not get enough, and magically, they are fighting. Wait, after 2 months, the heat will go and nothing will happen.

So, CBN, it’s the government that needs a cash withdrawal limit and not companies and citizens; leave us alone!

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Comment 1: Ndubuisi Ekekwe truth Sir. I have had this figured out for so many years now. Tax is the way forward for us, but let us have a government with pure resolve to checkmate cash flow, shutting down the economy where necessary for a proper reboot or new OS to be installed, the corruption has eaten so deep that quick scan can’t fix anything but rather on the surface, it looks like it’s working until the system breaks completely. Tax is Nigeria’s number one solution to earn more. I have also calculated that Nigeria must be making at least 70 trillion Naira annually, with the majority generated from tax, over 50%. We need a budget of at least 60trillion per year for 6 years for Nigeria to begin to emit freshness all over, and yeah under a condition that naira will fare against the dollar during those periods.

Don’t tell me it’s not possible, in two years, under the right culture and leadership, through fair taxes, we can bring in that sum, but before then, let’s have accountable leaders. I pray that we get one this time, but whatever happens after the election, I am optimistic Nigeria will be a glory from Africa and a shine the world will rely on for many things in the less than two decades from now.

When I did a live video on pitching tips last week, I talked about identifying market needs and why you are in the best position to solve them. I also discussed creating a business model around the market need you are meeting, and I would like to shed more light on it.

Let’s take a fictional scenario. So, you have decided that by building an application, you can solve people’s money problems by helping them draw a budget and keep to it daily. You should not have any problem with market entry because this is a need. But how do you intend to make money off this?

Will this model be convincing to get an investor to part away with his or her money? How does this translate into profit for you? Even if it does raise some money, will it be sufficient to keep the business operations going?

These questions should be answered before you decide to do business with it. It is okay to solve a problem, but if it does not translate into cash, you might as well be running a not-for-profit organization.

The term business model simply refers to your plan for making a profit. Your business model identifies the products or service, the market, what you hope to have customers pay for it, what percentage of it will go into operations and expenses and what percentage becomes profit. This is not only for new businesses but also for old companies planning new product launches.

You should factor in startup costs, your financing sources, marketing strategy, sustainability plan, and possible partnerships. Your business could adopt a B2C (Business to consumer) model, a B2B (Business to business) model, a C2B (Consumer to Business) model, or a C2C (Consumer to consumer), but the party receiving the service or product should be willing to pay for it.

Another thing your business model should do is anticipate trends, and that is why it is an ongoing process even for existing businesses. Today’s world is a lot more dynamic than we could ever have imagined, and your plans for making a profit could easily become outdated as soon as another business launches with a better option. Factor all of that in a while drafting and updating your business model.

Can you imagine what it would be like if the service you are offering for a fee becomes the same service another Company offers pro-bono or as a value-added service for customers who subscribe to their products? You could be out of business in the twinkle of an eye.

Also, try to envisage challenges that could come up for your business in terms of government policies, cultural challenges, and the like. Trust me, an investor is more likely to take you more seriously if you have factored in all the possible challenges and addressed them in advance, than if you have merely glossed over them in the hope that they never show up.

The Senate on Wednesday asked the Central Bank of Nigeria to considerably adjust the cash withdrawal limits, as criticism trails the recently announced policy that is expected to take effect from Jan. 9, 2023.

The red chamber deliberated on the CBN’s withdrawal limit policy yesterday after a postponement. The deliberation was previously billed to hold on Tuesday in response to growing protest against the policy by the public.

After considering a report from its Committee on Banking and Finance, the lawmakers directed the committee to commence aggressive oversight of the central bank and its commitment to make flexible adjustment to the withdrawal limit.

The CBN had last month, announced that ATM and over the counter cash withdrawals at the banks have been limited to N100,000 per week for individuals and N500,000 for corporate organizations. POS withdrawal was limited to N20,000 per day while the apex bank directed that only N200 and lower denominations should be loaded into banks’ ATMs.

The policy has however, drawn public outcry, with experts saying that it would stifle economic growth in the country. Consequently, the public outcry drew the attention of the National Assembly. The House of Reps was the first to summon the CBN governor Godwin Emefiele, asking him to suspend the policy.

However, there have been divided opinions on the policy even among lawmakers. While some believe it will have negative economic impact – stymieing business growth for SMEs – particularly in rural areas, others believe that the policy wields many benefits – such as curbing banditry and kidnapping and keeping Nigeria’s free-falling currency, the naira, stable.

The committee made its recommendations, urging the Senate to support the central bank’s policy. But after the matter had been thrown open for deliberation following the report by the committee’s chairman, Uba Sani (APC, Kaduna Central), the senators expressed varying views on the policy.

Opposing the policy, the Senate spokesman, Ajibola Basiru, described the committee’s report as “vague” and the CBN’s policy as “unrealistic.” He said the central bank needs to review the withdrawal limit upward considering Nigeria’s economic realities.

“I am not oblivious of the recommendations of the committee but I am of the suggestion that they should have adjusted the indices…,” he queried. “Why not say N500,000 in place of N100,000. This is in line with the realities. This report is vague.”

Adamu Aliero, Kebbi senator, also in opposition of the policy, said the central bank needs to create a room for flexibility in implementing the policy, considering the country’s realities.

“There are about 774 local governments in the country and only about 60 percent of the 774LGs are covered by banks,” he said. “While I support e-banking and cashless policy, I think we should do it with caution. There should be room for flexibility.”

Against the majority’s opinion, Senator Yusuf Yusuf urged his colleagues to support the policy. He said the policy transcends financial reasons to security, technology and the stability of the naira.

“If I had my way, I’d recommend the highest denomination to be N100. That is the only way to ‘de-dollarise’ the money. Because we are killing ourselves by keeping all the money and keeping dollars…,” he said.

Following its deliberation, the Senate called for adjustment of the policy and mandated its committee on finance to periodically report the outcome of its consultations to the red chamber.