Barely 24 hours after the Central Bank of Nigeria, CBN, issued a guideline to limit cash withdrawals, the Association of Mobile Money and Bank Agents in Nigeria, AMMBAN, has kicked against the policy.
AMMBAN members are also known as POS operators.
As part of its recent naira redesign policy the CBN is seeking to reduce the cash in circulation, having previously claimed that excessive cash in the economy is fueling inflation and criminality.
The Godwin Emefiele-led, on Tuesday, issued a guideline to commercial banks and other Financial Institutions, OFIs, in the country to limit on the counter, OTC and ATMs weekly cash withdrawals for individual and corporate organisation to N100,000 and N500,000, respectively.
The apex bank pegged individual daily withdrawal to N20,000.
Commercial banks and OFIs have also been directed to load only N200 and lower denominations into their ATMs, effect from January 9, 2023.
Reacting AMMBAN said the CBN is trying to run them out of business, noting that the country is not right for such policy.
The group president, Olojo Victor said the policy is counter-productive and will not serve the interests of many Nigerians who mostly depend on cash for daily transactions.
Victor said, “We are against this. It is counter-productive. It does not represent what the CBN initially stood for in terms of financial inclusion. This is not driving us forward.
“It is a punishment for an average Nigerian. A bag of rice is N48,000. That means if I want to go to the market I can’t take cash. How will I do the transaction?
“We don’t have the technological infrastructure to support this policy. Nigerians have not been sensitized.
“There is no alternative and you are taking out cash. You are running a cash-dominant economy as we speak.
“Cash still remains king whether we like it or not. Go to the average market we still have more cash transactions than PoS and suddenly you want to seal cash without bringing alternatives and education and sensitizing Nigerians on how the alternatives work.
“This will not fly. It is not suitable. It is a good idea but not at the right time.”
The CBN had on December 1, 2022 launched new naira notes of N200, N500, and N1000, after receiving an approval from President Muhammadu Buhari.
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