As the cost associated with handling cash is high compared to other payment channels, Central Bank of Nigeria introduced a new Cash-Less policy to minimize cash-based transactions.
Yes, cash transactions cannot be eliminated 100%, but efforts can be made to reduce them. Apart from communications on benefits of moving cash transactions to alternate channels, one more option adopted by Central Bank of Nigeria, is the ‘cash handling charge’ on daily cash withdrawals or cash deposits that exceed N500,000 for Individuals and N3,000,000 for Corporate bodies
The Cash-Less policy was initially rolled out in Lagos and subsequently to the full country.
There were apprehensions that Central Bank of Nigeria was contemplating to eliminate cash transactions completely. However, subsequently a number of communication materials were released to emphasis that the policy is to reduce ‘cash transactions’, and not eliminate them.
Cash withdrawals through any mode i.e Over-the-counter, ATM withdrawal etc are added to cumulative limit.
The cash collected through ‘Cash-in-Transit’, mode is also included as cash deposits in the respective corporate bodies’ limits.
The benefits of the Cash-Less policy are already visible in the Nigerian economy.
Another key point of the policy, is that 3rd party cheques above N150,000 will l not be eligible for encashment over the counter. Value for such cheques shall be received through the clearing house only.
All the POS terminals in Nigeria are equipped with a minimum of 24 hours battery operating power, and majority of them have a car charger too.
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