Nigeria: Cashless policy rolled out nationwide

Jul 02, 2014

The cashless policy introduced by Central Bank of Nigeria (CBN) went nationwide yesterday (July 1st).

The cashless policy introduced by Central Bank of Nigeria (CBN) went
nationwide
yesterday (July 1st).

Under the policy, individual and corporate cash withdrawal are limited to N500,000 (€2,242) and N3 million respectively, with a two to three per cent charge on any amount above these limits, the Daily Independent reports.

While these charges already apply in the seven states where the scheme was earlier launched, the CBN has decided to grant a one-year waiver in the thirty states set to roll out the policy.

With this policy, Nigeria is aligning with the best international practices. The apex bank said the move will drive the development and modernisation of the country’s payment system in line with its goal of ranking amongst the top 20 economies by the year 2020.


The policy is also expected to reduce inflation and curtail money laundering in the country.


A reduction in the cash manually transacted in the country could lead to a reduction in
the
inflation rate.
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