“Now, the misconception of the policy being held by many is that they are limited to only spending N20,000 per day. No! That’s not true. Your cash transfers, your cheques, your PoS, you could still use all these to make your normal transactions, but when it comes to cash withdrawals of more than N20,000 per day, that won’t be permitted any longer if the new policy gets implemented. Imagine what this policy will do to the kidnapping business where these captors rather prefer cash payment to protect themselves from being tracked. This denotes that for a ransom of say, N5m; they would have to wait for 15 years to have you withdraw 20k per day, while they, in return, will use 5 years to deposit the cash in their bank. What this does to such crime is that it makes it less lucrative, thereby erasing it from the land to a large extent. The circulation of money will also be controlled such that we have more in our bank vaults unlike the present situation where a sizeable amount of money is outside the bank vaults which is always an economic faux pas for any country intending to attain economic prosperity.”
With the policy still getting flurry of backlashes from the general public, with the Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele summoned by the Senate to justify the feasibility of such policy in light of the present realities of the country; the theory of throwing the baby with the bath water, I daresay, must be avoided at all costs in this case.
It is apparent knowledge that the idea to make the country cashless is not just one that came out of the blues. The ground had always been watered to envelope the country with digital method of financial transaction milking all the attendant benefits that come with it. Gradually, the country is getting there as where we are today as regards a digital financial society is not where we used to be. And I understand the grievances of Nigeria that the change being proposed to expedite a cashless society is too harsh, sweeping and incongruent of the present realities of the country, but then, to every change: there are three sides to it: first the resistance, second the bad side, then third — for those willing to acknowledge — the good side.
However, one thing I have observed from the counterarguments against the concept of the policy is that critics of it are yet to fully grasp what the policy functionally entails, and how much of a ‘security’ good it holds for them.
For a recap of the policy, the cash withdrawal limit for individuals is fixed at N100,000 while N500,000 is fixed for corporate organisations. Also, the Automated Teller Machine (ATM) shall be subjected to a maximum of N20,000 cash withdrawal per day with N200 notes and below the only notes to be loaded into the ATMs.
Now, the misconception of the policy being held by many is that they are limited to only spending N20,000 per day. No! That’s not true. Your cash transfers, your cheques, your PoS, you could still use all these to make your normal transactions, but when it comes to cash withdrawals of more than N20,000 per day, that won’t be permitted any longer if the new policy gets implemented.
Imagine what this policy will do to the kidnapping business where these captors rather prefer cash payment to protect themselves from being tracked. This denotes that for a ransom of say, N5m; they would have to wait for 15 years to have you withdraw 20k per day, while they, in return, will use 5 years to deposit the cash in their bank. What this does to such crime is that it makes it less lucrative, thereby erasing it from the land to a large extent.
The circulation of money will also be controlled such that we have more in our bank vaults unlike the present situation where a sizeable amount of money is outside the bank vaults which is always an economic faux pas for any country intending to attain economic prosperity.
There is also the issue of tracing the source of a person’s money to ensure that we don’t have amid us unbeknownst a criminal or a harmful person such that they don’t go unreported. With this, outrageous and suspicious cash payment which has always been known for the wrong reasons, will get reduced, and that to an extent, reduces illegalities and make the country safer for us all.
Need I also mention about the complaints from people of always having to spend needlessly because they have cash with them. That narrative is seemingly bound to change with the new policy of N100k per week to individuals, and N20k per day. What this does is that it indirectly gives you a budget to work with such that unnecessary expenses get little or no attention cum leeway on your everyday financial activities.
The policy also solves the issues of parties and the embarrassing disrespect being paid to our naira notes therein. Countless times, the CBN, in conjunction with the police, have tried to regulate the indiscriminate spray of notes at parties, but with the new policy, the chances of having huge wads of notes at parties are reduced, plus it also helps people control the most times ‘irrational’ urge to spend ‘big’ at parties.
However, I understand that the policy has its shortcomings, with one being that it does not factor in the rural communities that are yet to be fully digitalized such that their dwellers rely heavily on cash for everyday financial transactions. To this end, my charge will be to CBN, to look into these communities and see how they must not be left out of a functioning financial digital climate that helps them and helps everyone.
By and large, there are more positives to take from the policy than negatives. And as seen in the past week, the resistance is normal considering it is a change and humans are always indispose to such. But time always has a way of making us adapt and appreciate changes.
Romans 12:1-2: Do not conform to the pattern of this world, but be transformed by the renewing of your mind. Then you will be able to test and approve what God’s will is—his good, pleasing and perfect will
Dr. Ofonime Emmanuel Bassey is a Security, Peace and Conflict Resolution Coach with decades of experience in the practice and promotion of Law Enforcement, Peace and Security through the Nigeria Police and the United Nations.
He is an advocate of Peace Leadership and Child Protection.
He has served and interacted at the top level management of the Nigeria Police as well as internationally as a United Nation’s Monitor/Mentor in Kosovo, Europe.
A professor of Peace Advocacy and Conflict Resolution, Dr. O.E Bassey is a certified United Nation’s Trainer, and currently the Director of ICOF Institute of Leadership, Peace and Conflict Resolution in Africa.
With his marks well-established in Peace Leadership both in Nigeria and Africa. Currently, he is the President, NISSI Safety Management Institute: An Institute of Peace Leadership.
Presently, he is spearheading a campaign tagged “The Next Peace Leaders”, a campaign that is billed to run from 2022-2023 with a target of training 37,000 young peace leaders.
For peace and security tips, consultations and trainings, reach him via:
Facebook: Dr. O.E Bassey
LinkedIn: Dr. O.E Bassey
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WhatsApp: +2347065828892
Mail: EmmanuelBassey@gmail.com
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