Topic: Central Bank of Nigeria to limit cash withdrawals - page 5. (Read 1184 times)

Those are pretty high limits. Many Dutch banks don't even allow to withdraw a couple months salary at once. Rabobank for instance has a default limit of €1250 per week, although you can raise it to €5000 for a day. And if you do that a few times, I bet you get questions.

Even though fiat money is pretty much a scam by design, they still don't want to you have "your" money!
Let's face it:

Cash is the enemy of every government. That’s why they are tirelessly working to destroy its value so everyone can get out of cash and nobody hoards it. According to them, physical cash is the mother of all evil because the govs can’t even track your transactions when you use physical cash. Sooner or later they will remove physical cash from existence and force everyone to use their shitcoins. I can’t accept this. I don’t want to accept this but what choice do we got? I guess the only option is… monero.

I'm all for cashless policies, be it card, wire transfers and many more but I feel these policies they just made would not be favorable to the the ordinary people.
This might even discourage people from putting their money in banks and other financial institutions. Going digital is a very good decision but there are ways to go about it.

First, lets look at it from the businessman perspective. Most market women go to market with cash. SMEs mainly do cash and even the business owners that are technologically advanced have customers that are not. There are lots of businesses that involves the movement of cash daily. In as much as I do not like people moving around with cash, this would really hinder their business. There is a high level of illiteracy in Nigeria, hence high poverty rate. Most of these people don't even know how to carry out an online transaction. These people need to first be brought out ignorance an illiteracy so the can at least find a way to come out of poverty. This should be the goal. And what better way to this than informing and educating them.

Another problem with this is the fact that the online platforms and card transactions of Nigeria is not in anyway reliable. It gets interrupted due to bad network from the network providers or the bank sometimes. Imagine making a huge transfer and it hangs (you've been debited but the account you're transferring to has not been credited). Worst still, this issue doesn't get fix urgently by the banks. They'll tell you "we will get it revered in 7 working days". The online banking sector of Nigeria is not trusted by the people. When some student want to pay their school fee they prefer going to the bank, not because they enjoy the stress of going to the bank but because its safer that way. They can easily pay their fees from their phone but they don't want any complication with bad network and the rest then you start hearing stories later.

Now Politically:

Look at the timing of the so called "redesigned currency" where they just changed the color of the currency. A redesigned naira will be in circulation from the !5th of December, 2022 and the old notes will not be accepted from 31st January, 2023. Just in time for their general elections. This strategy will make it difficult for the opposing party to have a lot of cash to push around for their election. Meanwhile, they have probably printed a lot of cash that they can use to buy voters.
Now due to his new naira notes, the opposition parties will send their cash to bank accounts so they can get the new naira notes for their own buying of voters and that's where the new policy of not withdrawing more that 100k naira for individuals and 500k for corporation organizations comes in. This will make it difficult for opposition parties to have the right amount of money they need for the elections.

In conclusion, ill say the government had no plans of Nigerians or the economy when they made this policy, its just another piece being moved on the chessboard to win the election.

N500,000 for corporate organizations is very small it is only about $1,125 and if  want to withdraw more than that there will be a fee, this will add to the costs that the company has to spend.
Do not really understand how the current economic conditions in Nigeria are, but Lebanese limits the withdrawal of customers' funds and that results in protest turmoil because we definitely don't like it when we are limited to taking what is ours, I would also refuse this, maybe I would prefer to just keep cash rather than putting money in the bank if have to face restrictions like this.

This new set of rules will only work on the poor to mid range business men, what about the rich? What about those politicians? What about musicians? What about those who always spend big every blessed days?

I doubt this will fix the problem of the country, the truth is always bitter, the problem of Nigeria is the people, the way people treat themselves in that country shows that everyone is not suitable for any powerful post.

They are doing this to promote cashless society or transaction, this might affect many but having that kind of cash from time to time is very inconvenient and maybe this is the reason why. I just don't like the idea of charging you for getting your money, better not to deal with those banks and look for some platform that can still allow you to get your money without paying huge charge fees.

This policy has some benefits which include;

1. Promote the use of online or internet banking platforms: Many people would now be forced to use alternative banking platforms instead of depending solely on cash transactions.

2. Reduce to a large extent cash ransom payment to kidnappers: The strict process and cost of withdrawing cash might make payments of ransom through cash very difficult and cumbersome which might affect or limit this crime.

3. Reduce the cost of maintaining the physical note: The cost of replacing mutilated money sometimes is very high but this policy would make society cashless thereby reducing the cost of maintaining the newly printed currency.

4. Expose Nigerians to computer education: Some citizens are not willing to embrace technology because they have the physical fiat options but this new rule might force them to learn and embrace computer education.

5. This policy could also serve as a good background for a gradual introduction of Bitcoin awareness programs by Bitcoin believers because Bitcoin is also not physical money. It would be easier to teach or introduce someone that have used online banking channels to Bitcoin than a person that has zero knowledge of internet banking.

Some drawbacks are;

1. These rules would affect mostly the masses because politicians are always given access to physical fiat to assist them in the electioneering processes. Also, most people would be able to afford the penalty to exceed the withdrawal limits.

2. Most banking channels in Nigeria are not reliable. There are always issues with online banking ranging from network and power problems. The government has failed to address these issues before this directive.

3. Most banks have poor security systems which make hacking of accounts very easy.

4. The government has failed to tackle the issue of kidnapping and they want to make access to cash difficult. I have read about cases where top government officials pay ransom for the release of their relatives while other citizens are advised not to pay the ransom.

5. This policy would have negative consequences in rural areas where most people are not well educated to use these online banking services. Also, most rural areas have no access to power or internet service.

   - Regardless of the limits they implement when it comes to withdrawal from the central banks, there is nothing the citizens can do about it. Now, if most Nigerians will be affected by these rules, I think the only simple solution is for them not to use bank accounts or not to make deposits in their accounts so that the banks will also feel the negative effects of this. in their industry.

Because for me, it doesn't seem like it helps the citizens in their country to be honest, but still, whatever their reason is, in my opinion, something is wrong.

In your opinion, is there any other way to reduce corruption other than this policy? Anti-corruption cannot be fixed quickly, it requires a combination of measures and time. I also don't think this way will reduce corruption, but it can be tested as long as they are acting and they don't turn a blind eye, we should look on the positive side.

Governments have controlled us for thousands of years, which is nothing new, and it's no surprise they want more. But it is a harsh truth that we will not be able to stop depending on them, but now we have the solution, and now we just need to limit our dependence on them, we will be fine.

So if I understand what the government is trying to do is that they are trying to limit the flow or circulation of cash or shall I say slowly edging us into a cashless economy? Then what was the point of rebranding the notes if from the 31st of January next year, it would stop being in circulation?

 There are several downsides to going cashless, and I doubt Nigeria has what it takes to combat the cases involved. Maybe this is another way of prompting the E-naira, since the discount giving to it didn't garner much attention.
In all honesty, this redesigned naira just helped in more corruption to take place as it has no basis in economics.

I see initiatives to reduce banknotes in circulation, although I think it might have a slight effect on the middle and lower class. I've heard about the massive adoption of bitcoin by the MSME businesses in that country due to their distrust of their own currency.

My understanding, the government of Nigeria is against bitcoin.

If the goal is to reduce the corruption in the country there are many other ways in which this could be achieved without inconveniencing so many people by not allowing them to get access the money that belongs to them.

To me this is just another step coming from a centralized government in their attempt to try to monitor their citizens and how they use their money, and they feel they can do whatever they want to achieve this goal even if this means they have to do this, but by doing such a thing the people that have their eyes open will decide to look for some alternatives, as you never know when they day will come in which a bank holiday will be called and you will have no access to your fund at all.

Even without the push for CBDC central banks around the world have been limiting the amount of cash to withdraw. Only this time they are fast-tracking the use of CBDC in the country where people are also aware of BTC.

It's been a failure so there is the need to push CBDC harder to make it. If they are to fight this, it's best for people to also not deposit cash to keep the cash circulating.

While I understand that banks are limiting withdrawal amounts whether through ATMs or OTC, I think the latest limits set by the Central Bank of Nigeria are too low. But if this is a way for them to wean people away from using cash, then it might work. This update is really inconvenient as it is costly, so people will have to find ways. Many might indeed end up opting for cards or digital wallets, but this could also result into people deciding to keep their money away from the banks, because money in the banks could mean less, difficult, and costly access. So this could either be successful or like shooting oneself in the foot.

N100,000=$227
it must be noted that minimum wage is
N30,000 = $67/month

to translate amounts

bank cashier requests
personal accounts $227
business accounts $1135

ATM $45 daily
retail ePOS cashback $45 daily

so its basically saying ATM/retailer cashbask allows 3 weeks salary withdraw and personal bank account bank teller allows ~ 4 month salary withdraw

Nigerian government is speeding the process of going cashless. The government might've made proper research and study, but for the common people it looks like something taking place in a much faster phase. Proper implementation reach the people in the right way than just trying to do what the government have scheduled.

Recently Nigerian government have taxed the cryptocurrency and now the plan to lower the fiat into circulation seems like a better way to go cashless and improve its own CBDC. Nigeria doing things in the right way and supporting cryptocurrencies will help them grow the economy as the country have got good number of cryptocurrency users.

I may be wrong or overthinking this situation but It seems to me that Nigeria is turning into something like a balloon probe, in terms of  implementation of cashless systems. I don't know, they seem to want to go for it very fast even faster than other countries with economies which are way more stable.

is there any chance there is some deal between the Nigerian government and the company which is behind their banking technology to push their CBDC there for testing purposes?

Maybe, they just want to accelerate it all because Bitcoin is quite prominent there, tho.

The full impact of this new policy on the economy and her citizens will be felt not next month but in 3 months that is when it can fully be accessed. I get it there are a lot of downsides to this but let's also consider the upside which has always been reducing corruption, a functional cashless economy as most Nigerians would look towards doing cashless transactions in addition the value of the naira would increase.

The central bank of Nigeria is changing up the entire system to try to boost the economy and the dwindling naira.
I personally do not fancy the idea of limiting how much cash withdrawals one can make within certain periods of time and putting a low cap on that.
This would adversely affect SMEs around the country and while it would push more people to exchange digitally through cashless means, it would have lots of negative sides

How the policy would impact the economy and more importantly the citizens would be seen next month.