Central Bank of Nigeria
A cashless economy is simply at its prime when all means of payments are carried out without the use of physical cash. Payments will range from a list of options such as cheques, wire transfers, debit and credit cards, online transactions, and mobile banking. The advantages of a cashless society are enormous; from regulating, controlling, and securing the financial system of any economy.
The Central Bank of Nigeria, led by its Governor Sanusi Lamido Sanusi, has put forward a policy requiring that all cash withdrawals and deposits be set at a daily limit of a maximum of N150, 000 while pegging that of corporate entities at N l, 000,000, with penalty fees of N100 per extra Nl, 000 and N200 per Nl, 000 imposed on individual and corporate defaulters respectively.
The Central Bank of Nigeria's reasoning behind this policy could be because of a lot of issues affecting the financial system; from trying to check money Laundry and illicit activity, inflation, cost of maintaining an economy predominantly cash base, or just good old change which is one factor that's always constant in life.
If all things are perfect there are still a few down sides to a cashless economy. Money by its nature is abstract. The less cash that flows through our hands, the more intangible it becomes and the more we lose our sense of its real value. Our banked assets are now an electronic apparition, and the fear of not having cash on hand is a downturn.
Nigeria's economy as it relates to forms of payments
Nigeria compared to the rest of the world, as it relates to payments, is still in the era of the wild wild West. To fully understand the situation one has to study the history and analyze factors such as; the Nigerian culture, the role of its government, the state of infrastructure, the level of general education, the availability of real data, the amount of investments made and needed, security as it relates to laws (enforcements and it judiciary) confidence in the system (internal
The Central Bank of Nigeria, led by its Governor Sanusi Lamido Sanusi, has put forward a policy requiring that all cash withdrawals and deposits be set at a daily limit of a maximum of N150, 000 while pegging that of corporate entities at N l, 000,000, with penalty fees of N100 per extra Nl, 000 and N200 per Nl, 000 imposed on individual and corporate defaulters respectively.
The Central Bank of Nigeria's reasoning behind this policy could be because of a lot of issues affecting the financial system; from trying to check money Laundry and illicit activity, inflation, cost of maintaining an economy predominantly cash base, or just good old change which is one factor that's always constant in life.
If all things are perfect there are still a few down sides to a cashless economy. Money by its nature is abstract. The less cash that flows through our hands, the more intangible it becomes and the more we lose our sense of its real value. Our banked assets are now an electronic apparition, and the fear of not having cash on hand is a downturn.
Nigeria's economy as it relates to forms of payments
Nigeria compared to the rest of the world, as it relates to payments, is still in the era of the wild wild West. To fully understand the situation one has to study the history and analyze factors such as; the Nigerian culture, the role of its government, the state of infrastructure, the level of general education, the availability of real data, the amount of investments made and needed, security as it relates to laws (enforcements and it judiciary) confidence in the system (internal