This is a really great call by the Central Bank of Nigeria and the Presidency to phase out cash withdrawal from public bank accounts in Nigeria. Yes, the Central Bank of Nigeria governor, Godwin Emefiele, is having one of his most fascinating quarters. He is working. That does not mean we like everything he is doing. But the CBN team is putting real efforts. And you can add Mr. President in that list also. I give Buhari credit because he can shut down all these new initiatives Emefiele is putting in place. I wish this started earlier instead of a few months to the end of this administration. To the CBN team, I salute. This is what we have been asking: show energy and serve the nation.
When I wrote this ”So, CBN, it’s the government that needs a cash withdrawal limit and not companies and citizens”, I posited that a cash withdrawal policy should focus on the government, as I withdrew my support of clipping citizens and companies, when we unable to reconcile electronic-based stamp duty cash collection.
Magically, that is the case: “The federal government of Nigeria has moved to implement a new policy that will restrict cash withdrawal from all public accounts. The policy, which will take immediate effect, mandates public office holders to open both domiciliary and local bank accounts.”
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The statement explained that the introduction of the new policy became necessary due to “the consistent devaluation of the Naira and the introduction of a new Naira Policy, which automatically activates Section 1 of the Money Laundering Prohibition Act.”
The move comes on the heels of the decision by the Central Bank of Nigeria (CBN) to redesign naira notes and introduce a new policy that limits cash withdrawal to N100,000 for individuals and N500,000 for corporate organizations per week. The policy, which also limits the POS withdrawal to N20,000 per day, is geared toward promotion of the country’s cashless policy and tackling vote-buying among other ills as the general election nears.
The statement said the policy prohibiting cash withdrawal from public accounts was initiated following the observation that most cash withdrawals from government accounts, including payments for estacode for public officials, are often in excess of the cash withdrawal limit provided by the Money Laundering Act.
If they can sustain this new playbook especially in the military and security-focused agencies, Nigeria will enter a new dawn. Well done Mr. President, Mr. Governor. Charity begins at home, and the government should be cashless first before companies and the citizens. Hello estacodes….no more cash for that.
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Comment 1: Ndubuisi Ekekwe I always enjoy reading your post because your words are always so powerful and factual. As you have rightly said sir this is a welcome development I just hope and pray the NASS and Senate won’t come and kick against it again.
Comment 2: I do not believe that this decision is coming too late, rather, it is the appropriate time. I applaud the CBN Team as well as Mr president, for taking these bold decisions.Our nation is on the verge…..the Nation is edgy, and thus, critical steps, though albeit painful, they have to be taken. I believe Nigeria will be better. I believe the Nation can still get back and better. God bless Nigeria.
Comment 3: A very thoughtful policy, if implemented to the letter, we will see corruption reduced by minimum of 50%.
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This is what fighting corruption should look like, and not by chasing people who have already stolen or looted the money, you waste a lot of time and resources doing the latter.
Why should public officers even touch cash? Anybody who wants to do business with the government must have bank account, it’s the minimum to qualify for such, whether they are buying petrol or water, it must be paid via the banking system.
We will keep tightening the loose ends, until jokers finally understand that there’s no space for them. Nigeria must succeed.