The Central Bank of Nigeria (CBN) has stated that its cashless policy and withdrawal limits will help the country’s economy in the future.
Aisha Ahmad, the CBN’s Deputy Governor for Financial System Stability, told the House of Representatives on Thursday that the cashless policy would help combat money laundering and protect people from armed robbery, kidnapping, and terrorism financing.
She also emphasized that the policy would encourage more people to join the formal payment system and provide economic opportunities in rural areas.
Ahmad went on to say that the policy would cut cash processing costs, minting costs, the cost of destroying old notes, and the cost of moving physical cash from one location to another, as well as the cost of protecting it.
She said:
We just want to reiterate the overall benefits of the cashless policy. It is to reduce cash processing costs, minting costs, the cost of destroying old notes and the cost of moving the physical cash from place to place; the cost of protecting it. All these costs are passed on typically to the banking public. Getting rid of these costs means that charges will be less in that respect.
Also, this is an opportunity to promote Nigeria’s positive image from a money laundering perspective. Even the recently passed anti-money laundering law has limits for cash for a reason because cash is usually the medium by which some of these nefarious activities are done. Suffice it to say that the advantages around protecting people from armed robbery, kidnapping, and terrorism financing go without gainsaying.
Ahmad recalled that during the COVID-19 pandemic, the world saw the negative impact of physical cash as no one could go anywhere.
She added;
It was the electronic banking system that protected and served those below the poverty lines that could have had their livelihood at risk.
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