The Central Bank of Nigeria (CBN) has unveiled a policy directive which stipulates that cash lodgements in excess of N500k (individual) and N3m (corporate) will attract 2% and 3% fines respectively. For withdrawals, the fines are 3% and 5% for individuals and corporate respectively. This directive is part of the CBN’s efforts to deepen the cashless policy.
Of course, if the CBN succeeds on cashless policy, tax receipts will improve in Nigeria. So, this is using one stone to kill two birds in the nation. Already, the tax agency (FIRS) has notified banks to transfer money from accounts of tax defaulters to the Federation account.
“In this regard, you are required to set aside the aforesaid sum and pay same to the credit of these attached companies in full or partial amortisation of its aforesaid tax debt. This should be done prior to the execution of all or any related transactions involving these companies or any of its subsidiaries.
“I further request that the FIRS be informed of any transactions prior to execution on the accounts, especially the transfer of funds to or from offshore or local accounts of these companies or any of its subsidiaries. Only on my authority should such transactions be exited.”
This is actually a great gift to most Nigerian fintech companies. As the 98% cash of the $301 billion consumer transactions shrink, digital payment or broad fintech startups will boom.
There is also the reduction of fees.
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