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Wednesday, 2 October 2019

Cashless Policy: NACCIMA President Urges CBN to Delay Defaulters' Penalty


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The National President of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Halhaji Saratu Iya Aliyu, has appealed to the Central Bank of Nigeria (CBN) to delay the penalty attached to the cashless policy in order to give time for the current policy of mobile money to take firm root before the full implementation of the cashless programme.

NACCIMA is the umbrella body of city and bilateral chambers in Nigeria.

Aliyu ,who spoke exclusively to THISDAY on Wednesday, said her appeal to delay the penalty became necessary when viewed against the backdrop of the negative  fallouts in the semi-urban and rural areas where there are no banks and or connectivity infrastructure to support online transactions, adding that such might encourage people to keep more cash in hand with its attendant risks.

Mobile money is a payment solution that enables people to pay for goods and services with their mobile phones. A number of providers have already been licenced by the CBN to offer mobile money in the country as part of the cashless policy.

According to a CBN circular, a 3 percent processing fee is charged for withdrawals of amounts above N500, 000 for individual accounts and 2 percent for deposits. For corporate accounts, a processing fee of 5 percent is charged for withdrawals and 3 percent for deposits of amounts above N3 million.

The CBN directed that implementation of the policy should commence from September 18 in Lagos, Ogun, Kano, Abia, Anambra and Rivers States as well as the Federal Capital Territory (FCT). The nationwide implementation of the policy would take effect from March 31, 2020.

NACCIMA President, however, said: “Considering the fact that over 70 per cent of the economy is in the informal sector, which operates as individuals, this new cashless policy will likely enhance the financial inclusion policy of the government as more individuals will open corporate accounts so as to be able to transact with higher amounts of cash between N500, 000 and N3million without any charge.

“The negative fallout of this is in the semi-urban and rural areas where there are no banks and/or connectivity infrastructure to support online transactions. This might encourage people to keep more cash in hand with its attendant risks.

“NACCIMA, therefore, appeals to the CBN to delay the implementation of the penalty attached to the policy in order to give time to allow the current policy of mobile money to take root firmly before the full implementation of the cashless policy.”

The governor of CBN, Mr. Godwin Emefiele, while briefing journalists on September 20, 2019, said the implementation of the policy would continue as announced despite the House of Representatives call to suspend it.

Debunking the claims that many Nigerians would suffer the negative impact of the policy, Emefiele said only about five to 10 percent of bank customers would be affected by the policy.

The CBN governor added that a payment system that encourages the use of non-cash channels was desirable if Nigeria wishes to compete with the economy of developed countries.

He said the policy was first introduced in 2012, adding that a lot of stakeholder’s engagements were done to sensitise Nigerians on its benefits.

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