Claims that the Central Bank of Nigeria’s (CBN) new policy that limits cash withdrawals is aimed at point-of-sale (PoS) agents have been proven false.
Even though the apex bank set the weekly withdrawal limits for individuals and businesses at N100,000 and N500,000, respectively, on December 6, it still let people withdraw up to N5 million or N10 million in special cases.
During a live interview on Saturday’s episode of Sunrise on Channels Television, Mustafa Haruna, director of banking supervision for the CBN, stated, “Let me just correct an impression: not in any way are they (PoS agents) harmed.”
How much does a normal agent outlet require every day when the math is done? People need to simply perceive this as a measure meant to promote economic expansion and progress. Once Nigerians realise how much this measure will help them, I’m sure their opinions will change.
“There is typically fear and apprehension when introducing something new.” To make sure that Nigerians are aware of the issues at hand, what is involved, and what is in it for them, we are also coupling them with substantial and ongoing marketing and sensitization.
Haruna brought up the apex bank’s circular from December 6, which said that there are requirements to meet if a person or organisation has “compelling circumstances” and needs more money than the amount they were given.
In such circumstances, not more than three times a month, the CBN had indicated that withdrawals above the limit would be subject to processing costs of 5 and 10 percent for individuals and corporate entities, respectively, in addition to “increased due diligence and other information requirements.”
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Additionally, applicants must upload the following documents to the CBN’s portal: a notarized customer declaration of the purpose for the cash withdrawal; bank verification numbers (BVNs) for the payee; and, where applicable, senior management approval for the withdrawal from the drawee’s managing director; and approval in writing from the MD or CEO of the bank authorising the withdrawal.
The agent networks in and around Nigeria had grown exponentially, according to Haruna, who called them “very omnipresent.”
“In Nigeria, it is rare to walk anywhere without coming across at least one agent outlet where they provide cash-in and cash-out services.” These clients are welcome to utilise those services, according to the CBN director.
However, regarding the question of how much naira a customer like that would require, of course, this is an evolutionary process; we will get there. And if you require a significant amount of cash, you can always go to your bank and explain that this is a business matter for you, and they will be able to help.
He claimed that the CBN policy aimed to expand the cashless programme that was initially implemented as a pilot project in big cities like Lagos and Abuja ten years ago. He said that the programme had to be made bigger because managing currency costs a lot of money.
Although the new limit and costs are different from what we had, we began in 2012 and had some fees that you had to pay. This is not a novel concept. “According to international trends, we believe that if we are to advance, we must step up our efforts,” he stated.
