Bitcoin Forum

The central bank of Nigeria is changing up the entire system to try to boost the economy and the dwindling naira.
I personally do not fancy the idea of limiting how much cash withdrawals one can make within certain periods of time and putting a low cap on that.
This would adversely affect SMEs around the country and while it would push more people to exchange digitally through cashless means, it would have lots of negative sides

How the policy would impact the economy and more importantly the citizens would be seen next month.

The full impact of this new policy on the economy and her citizens will be felt not next month but in 3 months that is when it can fully be accessed. I get it there are a lot of downsides to this but let's also consider the upside which has always been reducing corruption, a functional cashless economy as most Nigerians would look towards doing cashless transactions in addition the value of the naira would increase.

I may be wrong or overthinking this situation but It seems to me that Nigeria is turning into something like a balloon probe, in terms of  implementation of cashless systems. I don't know, they seem to want to go for it very fast even faster than other countries with economies which are way more stable.

is there any chance there is some deal between the Nigerian government and the company which is behind their banking technology to push their CBDC there for testing purposes?

Maybe, they just want to accelerate it all because Bitcoin is quite prominent there, tho.

Nigerian government is speeding the process of going cashless. The government might've made proper research and study, but for the common people it looks like something taking place in a much faster phase. Proper implementation reach the people in the right way than just trying to do what the government have scheduled.

Recently Nigerian government have taxed the cryptocurrency and now the plan to lower the fiat into circulation seems like a better way to go cashless and improve its own CBDC. Nigeria doing things in the right way and supporting cryptocurrencies will help them grow the economy as the country have got good number of cryptocurrency users.

N100,000=$227
it must be noted that minimum wage is
N30,000 = $67/month

to translate amounts

bank cashier requests
personal accounts $227
business accounts $1135

ATM $45 daily
retail ePOS cashback $45 daily

so its basically saying ATM/retailer cashbask allows 3 weeks salary withdraw and personal bank account bank teller allows ~ 4 month salary withdraw

While I understand that banks are limiting withdrawal amounts whether through ATMs or OTC, I think the latest limits set by the Central Bank of Nigeria are too low. But if this is a way for them to wean people away from using cash, then it might work. This update is really inconvenient as it is costly, so people will have to find ways. Many might indeed end up opting for cards or digital wallets, but this could also result into people deciding to keep their money away from the banks, because money in the banks could mean less, difficult, and costly access. So this could either be successful or like shooting oneself in the foot.

Even without the push for CBDC central banks around the world have been limiting the amount of cash to withdraw. Only this time they are fast-tracking the use of CBDC in the country where people are also aware of BTC.

It's been a failure so there is the need to push CBDC harder to make it. If they are to fight this, it's best for people to also not deposit cash to keep the cash circulating.

If the goal is to reduce the corruption in the country there are many other ways in which this could be achieved without inconveniencing so many people by not allowing them to get access the money that belongs to them.

To me this is just another step coming from a centralized government in their attempt to try to monitor their citizens and how they use their money, and they feel they can do whatever they want to achieve this goal even if this means they have to do this, but by doing such a thing the people that have their eyes open will decide to look for some alternatives, as you never know when they day will come in which a bank holiday will be called and you will have no access to your fund at all.

I see initiatives to reduce banknotes in circulation, although I think it might have a slight effect on the middle and lower class. I've heard about the massive adoption of bitcoin by the MSME businesses in that country due to their distrust of their own currency.

My understanding, the government of Nigeria is against bitcoin.

So if I understand what the government is trying to do is that they are trying to limit the flow or circulation of cash or shall I say slowly edging us into a cashless economy? Then what was the point of rebranding the notes if from the 31st of January next year, it would stop being in circulation?

 There are several downsides to going cashless, and I doubt Nigeria has what it takes to combat the cases involved. Maybe this is another way of prompting the E-naira, since the discount giving to it didn't garner much attention.
In all honesty, this redesigned naira just helped in more corruption to take place as it has no basis in economics.

In your opinion, is there any other way to reduce corruption other than this policy? Anti-corruption cannot be fixed quickly, it requires a combination of measures and time. I also don't think this way will reduce corruption, but it can be tested as long as they are acting and they don't turn a blind eye, we should look on the positive side.

Governments have controlled us for thousands of years, which is nothing new, and it's no surprise they want more. But it is a harsh truth that we will not be able to stop depending on them, but now we have the solution, and now we just need to limit our dependence on them, we will be fine.

   - Regardless of the limits they implement when it comes to withdrawal from the central banks, there is nothing the citizens can do about it. Now, if most Nigerians will be affected by these rules, I think the only simple solution is for them not to use bank accounts or not to make deposits in their accounts so that the banks will also feel the negative effects of this. in their industry.

Because for me, it doesn't seem like it helps the citizens in their country to be honest, but still, whatever their reason is, in my opinion, something is wrong.

This policy has some benefits which include;

1. Promote the use of online or internet banking platforms: Many people would now be forced to use alternative banking platforms instead of depending solely on cash transactions.

2. Reduce to a large extent cash ransom payment to kidnappers: The strict process and cost of withdrawing cash might make payments of ransom through cash very difficult and cumbersome which might affect or limit this crime.

3. Reduce the cost of maintaining the physical note: The cost of replacing mutilated money sometimes is very high but this policy would make society cashless thereby reducing the cost of maintaining the newly printed currency.

4. Expose Nigerians to computer education: Some citizens are not willing to embrace technology because they have the physical fiat options but this new rule might force them to learn and embrace computer education.

5. This policy could also serve as a good background for a gradual introduction of Bitcoin awareness programs by Bitcoin believers because Bitcoin is also not physical money. It would be easier to teach or introduce someone that have used online banking channels to Bitcoin than a person that has zero knowledge of internet banking.

Some drawbacks are;

1. These rules would affect mostly the masses because politicians are always given access to physical fiat to assist them in the electioneering processes. Also, most people would be able to afford the penalty to exceed the withdrawal limits.

2. Most banking channels in Nigeria are not reliable. There are always issues with online banking ranging from network and power problems. The government has failed to address these issues before this directive.

3. Most banks have poor security systems which make hacking of accounts very easy.

4. The government has failed to tackle the issue of kidnapping and they want to make access to cash difficult. I have read about cases where top government officials pay ransom for the release of their relatives while other citizens are advised not to pay the ransom.

5. This policy would have negative consequences in rural areas where most people are not well educated to use these online banking services. Also, most rural areas have no access to power or internet service.

They are doing this to promote cashless society or transaction, this might affect many but having that kind of cash from time to time is very inconvenient and maybe this is the reason why. I just don't like the idea of charging you for getting your money, better not to deal with those banks and look for some platform that can still allow you to get your money without paying huge charge fees.

This new set of rules will only work on the poor to mid range business men, what about the rich? What about those politicians? What about musicians? What about those who always spend big every blessed days?

I doubt this will fix the problem of the country, the truth is always bitter, the problem of Nigeria is the people, the way people treat themselves in that country shows that everyone is not suitable for any powerful post.

N500,000 for corporate organizations is very small it is only about $1,125 and if  want to withdraw more than that there will be a fee, this will add to the costs that the company has to spend.
Do not really understand how the current economic conditions in Nigeria are, but Lebanese limits the withdrawal of customers' funds and that results in protest turmoil because we definitely don't like it when we are limited to taking what is ours, I would also refuse this, maybe I would prefer to just keep cash rather than putting money in the bank if have to face restrictions like this.

I'm all for cashless policies, be it card, wire transfers and many more but I feel these policies they just made would not be favorable to the the ordinary people.
This might even discourage people from putting their money in banks and other financial institutions. Going digital is a very good decision but there are ways to go about it.

First, lets look at it from the businessman perspective. Most market women go to market with cash. SMEs mainly do cash and even the business owners that are technologically advanced have customers that are not. There are lots of businesses that involves the movement of cash daily. In as much as I do not like people moving around with cash, this would really hinder their business. There is a high level of illiteracy in Nigeria, hence high poverty rate. Most of these people don't even know how to carry out an online transaction. These people need to first be brought out ignorance an illiteracy so the can at least find a way to come out of poverty. This should be the goal. And what better way to this than informing and educating them.

Another problem with this is the fact that the online platforms and card transactions of Nigeria is not in anyway reliable. It gets interrupted due to bad network from the network providers or the bank sometimes. Imagine making a huge transfer and it hangs (you've been debited but the account you're transferring to has not been credited). Worst still, this issue doesn't get fix urgently by the banks. They'll tell you "we will get it revered in 7 working days". The online banking sector of Nigeria is not trusted by the people. When some student want to pay their school fee they prefer going to the bank, not because they enjoy the stress of going to the bank but because its safer that way. They can easily pay their fees from their phone but they don't want any complication with bad network and the rest then you start hearing stories later.

Now Politically:

Look at the timing of the so called "redesigned currency" where they just changed the color of the currency. A redesigned naira will be in circulation from the !5th of December, 2022 and the old notes will not be accepted from 31st January, 2023. Just in time for their general elections. This strategy will make it difficult for the opposing party to have a lot of cash to push around for their election. Meanwhile, they have probably printed a lot of cash that they can use to buy voters.
Now due to his new naira notes, the opposition parties will send their cash to bank accounts so they can get the new naira notes for their own buying of voters and that's where the new policy of not withdrawing more that 100k naira for individuals and 500k for corporation organizations comes in. This will make it difficult for opposition parties to have the right amount of money they need for the elections.

In conclusion, ill say the government had no plans of Nigerians or the economy when they made this policy, its just another piece being moved on the chessboard to win the election.

Cash is the enemy of every government. That’s why they are tirelessly working to destroy its value so everyone can get out of cash and nobody hoards it. According to them, physical cash is the mother of all evil because the govs can’t even track your transactions when you use physical cash. Sooner or later they will remove physical cash from existence and force everyone to use their shitcoins. I can’t accept this. I don’t want to accept this but what choice do we got? I guess the only option is… monero.

Those are pretty high limits. Many Dutch banks don't even allow to withdraw a couple months salary at once. Rabobank (https://www.rabobank.nl/particulieren/service/betaalpas/limiet-betaalpas-wijzigen) for instance has a default limit of €1250 per week, although you can raise it to €5000 for a day. And if you do that a few times, I bet you get questions.

Even though fiat money is pretty much a scam by design, they still don't want to you have "your" money!
Let's face it:

When passing this form of ruling, there are a few factors CBN should keep in mind.
1. Check the currency exchange rate of goods and services(commodities)

2. The banking system, how fast and reliable they are in carrying out digital transactions,

3. How familiar the young and elderly citizens are with using android devices.

People will now be forced to store money at home rather than deposit it at a bank as a result of the CBN's new law. You shouldn't restrict a marketer who deals in foodstuff or any other enterprise to merely withdrawing between 20k and 100k per week for his or her business.

---

The only issue I have with this is if the following CBN governor, who will be chosen by the succeeding President, would maintain and uphold the current CBN governor's laws. Because there isn't anything like continuity in the law and ministerial offices in Nigeria.

dont think of it as a US amount.
that $1135 represents 16 months of minimum wage

if you were to think of it in american terms where in america $1.6k is 1 month min wage its saying in america a business can withdraw from a bank cashier counter $25k before paying fee(16 months of us minimum wage)

businesses can withdraw more.. at a fee. but an american business needing $25k a day cash to hand is not something businesses need to take out. usually businesses are depositing cash from customers. not taking out $25k a day.

Finally the government is welcoming the idea of cashless policy. With some importants of these actions already stated my most important aspect the value the Naira will gain against other exchange currencies. In a country already filled with corrupt people and kidnap in rampant, huge transactions could easily be traced.

Although some careless or illiterate citizens might results into hoarding this cash thereby resulting into black sale of cash outside the banks. Hoarding of cash could also lead some citizens to been robbed

What the government needs to do to make it effectively work is to sanitize illiterate business people. To work on the network problem often encounter by the banks. To order increase of transfer rate using the USSD code since not every citizen could have access to the bank mobile app all the time.

Lastly the government should look Into reducing the single cash to 200 naira or atmost 500 naira. Therefore scraping out the 1000 naira note, this will aid the return of lower notes and coins

Am in support of any means adopted to limit the extent to how people make abuse of money, this will work in our favour regardless of class as long as the they will not sidelines the public to make it work in their favour for those in political powers, he law must be abiding by everyone regardless of class and this issues of cash availability has to be minimized to the least in other to curb those in abuse of it, it's also a pity that some individuals will store cash in bulkiness after they have looted the government and keep in their disposal for any papetrate of evil.

Implementing the cashless monetary system will really boost the growth of their economy?

Even some developed countries tried this and not yet succeed because the cons are more, like it will entire destroy the small scale business who contribute to the developing nations more than the corporates so the government has to implement what they actually need not what other countries tried to do.

This policy will not help Nigeria and its citizens because politicians will keep on stealing and hoarding them in different places such as their houses or even caskets since they will want to always be with cash. The government is bringing more hardship to the poor,in Nigeria there are SMEs whose business worth is not upto $10, how will these people coupe with cashless policy.

The aged illetrate people will find it frustrating to adapt to this policy and might end up been scammed. They are looking for a way to control the citizens not to go against their government, so that they can do whatever they  like. If they want to boost the country's economy let them go back to many of Nigeria natural resources that they abandoned because of crude oil and start working on them to export. These will great employment for youths in the country and help the economy.

Nigeria is so messed up that they have  refinery that is not in good shape,instead of them to use some funds to work it and start refining their crude oil themselves to make more money from its by-products,they will take their crude to another country for refining which will cost so much and after refining they bring back only PMS,diesel and kerosene and selling the rest without the citizens knowledge,making life worst and miserable for their citizens.

They surely will ask to provide some documents in order to compile with the self made policies and regulations to put restrictions on the customers.You can increase limits but as you know you have to ask them with full disclosure so basically supervision on you.

Although you earn money and it's termed as your money but if we look the other way around then nothing is yours and the government and central chain of authorisation has the real power as they can make it illegal or restrict you from withdrawing your funds also so it's their funds just with you.

Henry Ford has made a valid statement but the fact is government won't allow people to realise it as they are living in dilemma of this scammy fiat currency.

Limiting withdrawals are still fine but when these things occur, people may start to worry. You know what happened to others, they also start limiting their service until one day, they just stop all the withdrawals. We only found out later on that the company is already bankrupt. Your advice there is right. People shouldn't deposit anymore but they will just withdraw all their money on that bank.

These people then should try to learn bitcoin and put their money there instead because no one would limit them there or freeze their accounts. Banks are not there to help but they are there to control people's money. People should start realizing this as soon as possible.

With economical point of view this is amazing step taken by Nigerian government. The currency conversions should be taken into consideration. Checkout @franky math which tells the actual story behind the scenes. The amount of cash that’s being noted in the bill is optimum for both individual and businesses considering the fact that it is well above the minimum wages and also required daily amount to live in the Nigeria. For us as foreigner it might look like assault but it’s not!! The cashless system will bring power to the economy. However, they must educate everyone to use and adopt it smoothly.

its not a harm on average people of africa. its more of a 5%-10% fee on the rich/affluent if they try a bank run

even china's CBDC dont care about average joe income earner withdrawing/spending. the banks only KYC and monitor the richer wallets which they report to authorities like tax offices

CBDC and countries are chasing after the rich tax dodgers
as its not cost effective to chase a guy for 10% on week min wage as it probably costs a tax office more then 2 months of min wage to administer any tax chasing via courts, sheriffs, bailiffs and auctions combined

The first few months will be rough definitely since this policy seems to be something sudden. People will find it difficult to adjust to but will finally be okay if the policy stays. Many SME's will shut down for sure. I do not have any professional knowledge in economics to know the extent this can be beneficial to their economy, but it surely has some benefits that have been considered by the professionals before making this new policy. Some other countries with their currency suffering will be observing to see if they can copy and implement this policy if it serves the intended purpose for the Nigerian economy.

N100,000 is around $225, and the limit isn't even per transaction or per day, but per week. This is a tiny amount, a very harsh policy for cash-reliant people. Imposing fees for higher amounts will discourage people from using cash, but is Nigeria even cashless enough for people to be able to get by without cash outside big cities? If it is, then it might be alright. But I fear that it isn't, and people will basically be forced to ration withdrawals and pay extra fees just to get by... Unfortunately, I couldn't find research on this matter that would explain which things are attainable without cash in Nigeria and how well-adopted card payments are in rural areas especially.

This move might just be considered politically motivated by some. The redesigning of the currency notes obviously at a time close to the country’s general election could as well be considered politically motivated as well. But it has its uses as well.
This new move by the central bank to limit cash withdrawals would certainly come as a surprise to its citizens as most citizens and small businesses  probably utilize cash payments more often and this would somewhat be a hindrance to businesses as well as funds for personal uses.
This could also be a move to minimize the amount of cash in circulation and further to curb inflation in the country.

This is new enough that they limit the withdrawal around $45 Daily or $225 weekly from the ATM. And this amont is different for business. And they must pay around 5% and 10% to make withdrawal above the limits. Wow, this is complicated enough.
In my country, we also have limits fr withdrawing money from ATM, but the limit is high enough so that we cans till use it. And we also are abe towitdhraw from the bank directly with higher amount.

Reading thier purpose is to change the Nigerian habit tothe diital paymenet. But, what I read here is:
So, the question is: Can the Nigerian change thie rhabit to the new rule? Are they ready for the changing? For, the rules willbe implemented in January.

It would be interesting to know the underlying reason for such a seemingly drastic action because capital controls are the sign of a very desperate government and economic situation in any country. Is it connected with some plan to maybe change the notes of the country or are they actually running of of the notes themselves, wanting to push more transactions through electronic systems instead? If it's a drive to move more of the economy online and away from paper/coins you could sort of get behind it, because in the long run it will be more efficient. In reality it will not affect many low level workers who might never reach these amounts if they're high.

many countries have an issue with big business doing huge cash-outs. driving to an airport leaving their lambos in the airport parking lot and flying out of the country

many businesses love to come into a country. get quick profit in some malicious way and escape with bundles of cash that cant be traced electronically..

its that simple
if they can atleast get a 5%-10% tax off those cash0and0run attempts. its less of a hit for a government

I have converted with limit cash withdrawing at Central Bank of Nigeria about 10,000,000 naira and have valued about $22,575. Its seems small amount limited withdrawal for central bank, actually if small bank could acceptable with limit withdrawing until 10,000,000 naira but seems problem when Central Bank of Nigeria have regulation about withdrawing limit.

There seems to be political interference in limiting withdrawals at the Central Bank of Nigeria, it could be that right now there is a financial crisis and the Bank does not have a large amount so it makes a policy to limit withdrawals.

based on 1 Nigerian Naira equals
0.0023 United

https://i.imgur.com/QAfmOp9.png

I totally agree with this. 200 naira should be the highest currency note. It will give the currency more value but i doubt they'll do that.

You can't simplify to the figures based on the minimum wage of the country, when a large amount of people are unemployed and majority are self employed.
For someone running a business which requires case inflow and output, a seller of clothes for example, they would need much more than their wage or profit to run the business (transport themselves, purchase the clothes, etc). Most of this transactions occur through cash and soon they would be limited to how much of it they can lay their hands on.

It is the elite class who have the liberty to hoard cash and you can be rest assured they would not be affected by policies like this in a highly corrupt nation.
The main goal is to increase taxations on transactions and also force SMEs to use cashless means, which will give the government an idea of how much cash flow the company registers and how to tax them.

Currencies do not simply gain value by reducing the maximum currency notes.
The value of a currency is tied heavily to the economy of the country and the trading power of that currency in international relations. Until both issues are decisively handled, the naira would continue to dwindle.

There shouldn't be any limit. 225 USD is a large volume of money relative to median income earners in Nigeria. You can't think of 225 USD from the perspective of someone in a developed country.

People that aren't cashless in Nigeria can probably get by within the limits of the withdrawal limit, but that isn't what the primary issue is. This sort of story isn't new at all. Government can easily step in and limit cash withdrawals if they want to, or freeze people's accounts/implement spending limits.

The money that exists in these bank accounts aren't actually yours, they're the governments.

So are we not doomed into the hands of these our so called leaders, those who make the law but the law does not work against them, i think then we are all deceiving ourselves knowing that this is the reality of what is in stake and yet unable to voice out against them, isn't this a political era of second slavery colony in which this time is coming from the blacks to themselves and not from the whites.


This same wrong approach they have been using on fiat which has made people soughted after for bitcoin as a rescue can only be effective where altcoins and centralized exchanges are in function and not within the bitcoin network.

That may be more of a political motive than to solve the current problems of the Nigerian government. Restricting  withdrawal will cause heavy damage to businesses and have no effect on controlling inflation. In order to control inflation, deposit interest rates must be increased to attract people to deposit money in banks, thereby controlling cash flow, not restricting withdrawals.

one of the worst things you can do when your currency is on the verge of collapse. You don't stop people from withdrawing for no reason whatsoever. The process of withdrawal and deposit is where the money is at, so by cutting off one end of the chain they are just putting a hamper on the circulation of their currency. Less money from withdrawals-less money to spend. Less money spent, more money kept and inflation will come in. Agreed. You have to inspire people to actually spend their money one way or another, not have them lose trust of the bank. I don't see the point in antagonizing businesses as well. They are the ones that are fostering the economy. What is going in Nigeria, why is everything their government doing there backwards of what they claim it to be?

This issue of the limitation of cash withdrawal is really something to be bothered about as it looks like it's not everyone who's comfortable with the prospect.
 News has it that the House of Reps are finding it difficult to wrap their heads on the proposition by the CBN governor, Emiefele and has been called in to give a report on how the redesigned naira note budget came about since it wasn't approved by the house.
 Nigeria seems confused at this point from the way I see it.

The CBN Governor is just being used to cover this act, it seems they're all looking for who to blame in this naira note change of a thing. They're just using the fact that we're getting close to the general election and moving money as usual is certain.

If care is not taken the new notes won't be legalized come next year. As it stands, with the way people are condemning the newly printed notes it will make them to use something to cover up, starting with the fact that nobody I mean nobody approved the change of the naira notes. If nobody did, then who did?

The issue of cash withdrawals restrictions is common, in my country, this also occurs several times, the main factor that is common is a very high inflation so that if money continues to circulate, inflation will not be controlled, besides the cash withdrawals limitation policy is a strategy of The central bank to hold money so that it can be used for more productive activities.

They are merely attempting to promote a cashless economy. These rules may undoubtedly be difficult for some people at times, but you can transfer any amount you like and desire if you have urgent needs or run businesses that need extra money.

Many people will lose their hard-earned money on these bank transfers from dishonest banks, I hope they would reduce fraud in bank transfers.

At the end of the day, bankers will undoubtedly sell cash, and wealthy men wouldn't mind paying interest on the excess

I feel like 200 or so dollars per week doesn't seem like too little, I do not have 200 dollars per week to cash out for example, and to be fair I never did, not because I never had that much, but because most of my stuff is digital anyway and sent from my bank or paid with credit card, so no cash required.

Does that mean this is okay? Of course not, because you are limiting peoples freedom to take their money, if that money is mine, I should be able to withdraw it whenever I want to, and if government doesn't allow me to, that is a good reason why bitcoin is far superior than most fiats in the world, it doesn't limit you and governments can't do anything to control it.

I don't think huge amount with 200 dollar withdrawing per week base on Central Bank of Nigeria limit cash withdrawing, we can't spent with $200 in daily day and how come effective until one week purchasing daily day needed with this values. Right now the Bank costumer not get freedom controlling their money after saving in the bank, always faced difficulty how to withdraw huge amount of their money when one day urgent needed their saving.

I think Central Bank of Nigeria need to change about regulation about limit cash withdrawing because give bad impact for the other won't save their money in the bank, will have criminal cases if can't withdraw all their money in the bank if limited rule keep use by Central Bank of Nigeria.

Since the new regulations were announced, many comments have been made about them by those who will be affected directly or indirectly in the country. I believe they did it for the sake of the country's economy. We don't know where this is going, but whatever it is, we're confident that it will be for the good of the entire country. No policy has ever been implemented in a country without public opposition, and this is no exception. But we can only hope that it is for the benefit of Nigerian citizens.

im just reading into the specifics of e-naira the CBDC of nigeria

so pages 19/27
https://enaira.gov.ng/assets/download/eNaira_Design_Paper.pdf

having a wallet/account on your phone. the spend limit is
wallet level 0:(unbanked - unidentified)
daily            weekly
20,000         120,000
No kyc. just uses phone number as an identifier


wallet level 1:(unbanked)
daily            weekly
50,000         300,000
simple kyc. uses phone number and national identity numberNIN


wallet level 2:(banked)
daily            weekly
200,000       500,000
kyc. uses phone number, NIN and bank verification numberBVN


wallet level 3:(banked)
daily            weekly
500,000       5,000,000
kyc. uses phone number, NIN and bank verification numberBVN

wallet level 4:(business-corp)
daily            weekly
unlimited     unlimited
full kyc. BVN, TIN and Bank confirmation


as for those thinking "cwentral bank has politicians that watch out every transaction

no

page 20/27


in short
the government is not watching you..

but your local payment service provider will. .. much like how the banking systems of fiat work now

I did threw my weight behind this policy as adopted by the central bank of Nigeria from when I first got the news. Like it's what every good meaning Nigerian should applaud the CBN for having taken such a bold step to making sure the naira recede from dwindling in value against other currencies of the world. This money policy has a way of bringing out the Nigeria economy from the base it's currently in at least to an extent. It will definitely reduce financial fraud and misappropriation in the public offices and make room for some level of transparency based on the restrictions that be.

The regulations may seem to bring untold hardship for Nigerians in terms of how to go about with the new policy but with time Nigerians will get used to it and adapt as things go normal. The only area am much concerned about this new policy by the CBN is in the area of continuity should a new administration come into power after the March 2023 general elections.

This is a new policy, so we'll have to wait and see where it goes. The reason for this may be unknown to many Nigerians, but I believe the main intention is to improve the economic clampdown that the country has been experiencing for quite some time. Let us think positively about this, and I hope the true motive is to benefit everyone, both rich and poor citizens. Before reaching this point, I'm sure it was subjected to extensive scrutiny by top government officials; we hope the Federal Government of Nigeria has made the right decision.

I’m curious as to how exactly would this new policy that’s being rolled out help reduce financial fraud and most especially, help reduce the misappropriation of funds in the public sector. And how exactly does more transparency from the side of the government come into this?
In my opinion, this move is to curb inflation in the society by the reduction of the amount of cash currently in circulation and to help encourage the cashless policy.

In a country where corruption thrives, a policy like this would do little or nothing to curb financial fraud or misappropriation of public funds from corrupt public office holders.

A very normal thing done by most of the developing economies these days. Limiting the amount of cash withdrawal to ensure that a lot of liquidity always remains in the system and all the transactions can be easily accounted for. Even though in longer term it's a step that increases financial inclusiveness of the country so in that way it's pretty good but if you see the basic of limiting someone to withdraw money from his very own account, the basic concept looks flawed to me.

Measures are generally taken, such as:
1. a means of combating huge "deposits" of corruption or other illegal accumulations.
2. also as a "safeguard" to prevent a short-term collapse of the economy.

The meaning is very simple - the mass population does not have significant savings, and, accordingly, without any problems, not very quickly, of course, but they will withdraw and exchange their hard-earned savings.
At the same time, due to artificial restrictions, it will not be possible to sow panic that the people withdrew all the money in 1 day! Because that's another problem - banks are running out of cash, this can lead to popular discontent / riots, and this can be exploited.
And having withdrawn all the money, the population could have bought out all the essential products in all stores, creating also a food problem...

And about "dishonest money". If someone managed to steal / appropriate / receive corrupt benefits, in a huge amount, it will be extremely difficult for him to turn such savings into new money, all because of the same limits. even if he distributes bags of money to his relatives/relatives/friends

Cash withdrawals are common when the bank feels that the balance is on the threshold of the minimum. I have also had several times received cash withdrawals from banks in my country for reasons of reduced liquidity, but as long as there is a central bank, this is not a problem and usually only short-term moments. the bank will ask the central bank to help.

I think the decision is well made to limit cash based economic activities to control the current situation in the country. meaning that banks are trying to protect the interests of the state in the midst of the current economic crisis especially for more pressing matters to be taken care of by the government such as job creation, empowerment, good infrastructure, etc.

Here is another example of what is in the bank - it doesn't belong to you. If you can't take what is yours at any given time, how can you call it yours? I think in this case, it's not for you. Any such case can be considered in different directions. I think there is something positive in this. By limiting withdrawals, banks encourage depositors to ask questions. For example, why keep money in the bank if you can't pick it up later.

Attempts to stimulate the economy in this way demonstrate only one thing - that the central bank doesn't cope with its functions if it brings the economy to such a state.

This cash withdrawal cap will actually have a positive impact on Nigeria's economic system. It will also enhance cashless policies, exposing many Nigerians to blockchain technology. Perhaps for this reason, the Nigerian government wanted to teach some of its citizens about blockchain technology and may have used this as a test to gauge public interest in it. Additionally, this policy will lessen money laundering and corruption in the nation.

Sorry bro. It is unfortunate that you have not really understood the Nigerian system. You are yet to know that policies are usually targeted against some people and not for the greater good of the whole people. Why is this policy coming at the tail end of this administration when election is just barely two months to be conducted? This is the question.

It is a selfish interest carried out at the wrong time. It is targeted for the political season and for whatever reason that they know better.

discussing the new currency redesign strategy. It's a major diversion. The economy will be hit hard by the costs. How will the bank interact with the 774 local government?
Additionally, it would put a lot of people out of commission. Due to the lack of banks in the majority of local government districts, the elderly and unbanked may not be able to handle the lengthy lines in the banking hall.

I don't really get it, how can everything in this country be all about politics. So if we have to stand in a long a queue just to collect our PVC they expect us to do the same when it comes to exchange of the old naira note to the new one.

I only see distraction in all these, election is by the corner and they are using this to keep the poor masses busy over nothing.
Was expecting this change and all that to be done after the election.

Nigeria is not the first country to go on a currency revaluation and change in monetary policy, countries around the world have undergone similar economic recovery policies, so this could be a good way to recover the recessed Nigerian economy and help to recover stolen national treasury by the politician who the majority of them are already indicted for money laundering and other financial crimes.

A lot of banknotes are currently been hoarded in the homes of politicians to be used for vote buying and other election malpractices during the coming election. These politicians will be forced to inject these banknotes back into the economy.

Maybe most of the banks implement this system by limiting the amount of daily withdrawals, or withdrawals for a certain time. Even if the bank is privately owned, we cannot make large withdrawals if we have not notified beforehand.
What CBN bank has implemented is also part of limiting the circulation of money. However, on the other hand, I believe that the money from companies or individuals stored in the bank is used by the CBN bank or used by the government.

When the state sees that the circulation of money is not good or there is too much it will cause inflation so that the central bank will limit cash withdrawals, this is a common and commonly used strategy, when they see conditions have improved then this limit is immediately removed.

This is exactly what I believe is the reason for all of this. Nigeria's economy requires serious improvement, and this step is a good one to help with that. I hope the government is successful in this endeavor for the benefit of all citizens. I wish it could really expose Nigerians to blockchain technology since the government is showing little interest in it recently.


I hope it improves for the course of the nation at large, the country really needs it and really needs to act on it as soon as possible. Many cases of corruption and money laundering have need the case of Nigeria for the past 20 years, I hope a change of that narrative will come now.

This is not a new action by banks, it is one of the strategies to help improve the economy, and if we pay attention, it will be used more when there is an economic crisis. Many people don't like this idea, but I think what the government is doing is good for the country's economy, and if we are patriots and want the country to progress, we should sympathize with them. I used to be in this situation too but one thing is our money is safe and you can still withdraw it. And if you don't like this, it's best not to deposit money in the bank but protect your own money, you will never have this problem.

The right question you all need to ask yourselves is, in Nigeria is this the first time that the government will change their currency? I am sure it's not, so have this ever work out as planned on the long run ? The answer is NO.

Changing the currency won't change anything, it's only a matter of time before Nigerians find themselves in the same spot before the next election begins.

I have a contrary opinion about this, not everytime a new policy come out that it will result into a policy summer sort, the central bank of Nigeria has taken a giant step to recover the economy from private and individual, politician and other financial saboteur and to a great extent. This new policy look positive to me and other financial analysts within the country most especially now that we are close to the national general election where naira notes are usually abused during campaigns and on the day of election for vote buying.
This time it will be hard for Nigerians to fine their way to abusing the new policy, most especially now that the only option open to both pos and individual bank users are subject to processing fees of up to 10% for transactions above the 20k limit.

This is not exactly true with your assumption. Nigeria has good laws but the implementation is the challenge. It takes political will to do that and that is not usually easy with the Nigerian system that is always running on favouritism and selective justice. This law may look good on the poor and masses but politicians will violate it without no punishment, so this is the issue and that will bring selective implementation.

The citizen on the other side is impacted by every policy. The government is working to create a cashless society in order to improve efficiency and boost the economy. In a way, they believe it will reduce corruption, and they want to reduce the circulation of cash while they wait to see if the policy will change things. Therefore, I don't feel like the withdrawal limit will benefit many people, especially those doing business on a large scale.

Redesigning a currency is not the right solution to solve economic problems, people save money in banks hoping to be able to take it at any time, when withdrawal restrictions occur it will create panic, the best thing to avoid this is to divert money to various types, for example bitcoin or altcoins.

This is one of the solutions that governments resort to to collect money from the black market.  Some of them are not satisfied with changing them, but rather increase their value and increase inflation rates.  Since the spread of the culture of crypto and digital assets since late 2016, we have noticed that some countries have resorted to changing their currencies from paper to electronic, and the reason, of course, is careful monitoring of money movements and financial activity of individuals and companies.  It is an attempt to escape forward and does not provide real alternatives that encourage people to abandon the use of crypto.

We also have a limit on depositing and withdrawing cash in our country, but I am shocked that it was very low in Nigeria. Here in our country, we have a daily limit of $1000, which is pretty big, and if you are just an ordinary person, you can't reach the limit. We all know that they are limiting it because it's for our good, like preventing thieves from stealing our money (only a few that they can get), and also it is a give way to others so that the bank can still cater other withdrawals from other customers.

Based on the CBN governor explanation concerning the limit cash withdrawal in the country few weeks ago, show that this new policy will bring good result to Nigeria economy in the future, that will make other countries to copy the strategy from Nigeria government. This policy will help the individuals in the country not to spend money anyhow than to endure to save more money that will make them not to experience poverty from their various places in the country.

I’m curious on how exactly would you think that this new policy would bring a good result to the Nigerian economy in the long run. You also mentioned that the policy would help citizens in the country not to spend money anyhow. That’s amusing to me. A policy stopping citizens from withdrawing a certain amount and you think it’s great because it helps citizens not to spend their own money anyhow. They should ensure and save money so they wouldn’t experience poverty later on. Your reasons for thinking that this policy is good cause it helps people not to spend money anyhow is absurd.

If you think government policy is unreasonable, do you have a better solution? Or do you just sit there and do nothing and criticize the government? It's funny when many people criticize the government, while the government is the ultimate authority, and others are just commoners who go online to slander the government and do nothing for the country.

What about not limiting our cash withdrawals in this manner? Is it really too much to ask from governments and banks that they allow us to get access to our own money at our discretion? After all it is our money, as long as we use it in a legal manner and we earned it legally as well no government should tell us what to do with it or try to limit us in anyway way or form, so it is obvious a move like this was made because their management of the economy is terrible and they are trying to cover it.

I don't also think political will alone is the problem that is affecting the effective implementation of policy in Nigeria, and I think that we substitute that assertion for the weak institution as the major setback to policy implementation in Nigeria because if our institutions are strong there will be strict adherence to the rule of law and the political class will not have the chance to manipulate the system, institutions are what is helping developed Nations today and if Nigeria takes the step to make our institutions strong enough, the political office holders will be left with no choice than to follow the set pattern just like it is done in the UNITED STATES we're there is national blue prints and plans that each political office holder will work with for the interest of the nation and not an individual thing.

When a country focus on promoting it's CBDC, it is a must to look for the ways with which it can be executed. Here this is possible through limiting the cash withdrawal and making the people focus on using CBDC. Nigeria being the leader to the cryptomarket of the African continent the usage of cryptocurrency is felt high amidst the legality and regulatory measures. To keep things in control this initiative have been taken and it is a flaw.

Well most Nigerians I know will never use the CBDC. It is just too unattractive. Transaction fees are too high and it is just absolutely ridiculous. Young Nigerians already zero confidence n government since they place a ban on bitcoin transaction and implemented other economic and financial policies that were unfavorable. In my honest opinion, for the CBDC to work, the government must first lift the ban on bitcoin transactions and allow bitcoin to co-exist with their CBDC after they have fixed their transaction fee, only then will young Nigerians even consider it.

Not sure if online channels are affected by these OTC cash withdrawal limits, but am guessing the intention could be to try to lower the high demand for goods and services which could be pushing prices up and contributing to the countries raising inflation rate as supply isn't matching this demand .

The motive of the high processing fees could be aimed at discouraging high spending, but unfortunately people will always find their way to get what they want especially politicians , and with some kickbacks here and their these limits are really not for everyone.

I don't know what the worst consequences of adjusting withdrawal limits will be for the Central Bank of Nigeria. Obviously I'd find the withdrawal limit adjustment too low for most people, but something positive can also be thought of.

I actually don't like about how they set those withdrawal limits. There's going to be a lot more trouble than hoping for profits, and it's likely that people will lose interest in stashing lots of money in their bank accounts in the near future. I don't know what benefit they're having in mind, but I don't think most people would really expect that.

Government make unreasonable and somewhat stupid policies all the time to favor some certain few individuals. I think I’m actually doing something when criticizing the government on policies I think aren’t beneficial to the general populace.
Elections which require the citizens to vote are held that put these people in government. If they’re not elected, they won’t have a position in government. Who then has the ultimate authority? I’d say it’s the voter that elects whoever in government. And it’s the commoners who has the ultimate power. The power to vote.

With your mindset, I bet you’re the type to be sucking up to anyone that has power and money. Defending the indefensible and ignorantly giving your rights away for peanuts.

I agree that the effect of the new decisions will be felt for 3 months. The impact of economic decisions is often not immediate. Of course, the decision has its advantages and disadvantages. But i think its biggest advantage will be preventing informality. The low amount of cash in the system may slow down the economy. In order for the economy to remain in balance there must be sufficient cash in the country. It is desirable that the liquidity ratio in the country is at the optimum level according to the financial structure of each economy. In one way, the value of the Nigerian Naira may increase. It looks like CBN has set limits on cash withdrawals and transactions to stabilize the value of the National currency.

I agree.

Since banks and government cannot find a way on how to tax cryptocurrency, it seems that this CBDC thing is the only way on how they can control the fiat circulation in the internet (digital payments) and they can easily track people who are making a lot of money that they didn't know which of course they are going to tax more. This CBDC thing to me smells fishy, I don't trust the banks.

They would be touching up something centralized which is CBDC's which it isnt really that surprising or shocking anymore.Speaking about limit cash withdrawals then as a citizen then there's no thing you can do
since they do have the full control and rights on how things should really be handled out. When you are dealing with centralized things then they do always have the power, whether they would be
locking up some funds or would be allowing through and it would really depends into their own discretion. Not all would really be that living on a place where you do have
that complete freedom when it comes to your own funds.

Do you think the government will slowly kill SME businesses with these restrictions?
I think illiterate customers will have little to do with "tech" services because of their incompetence. Assuming these illiterate people have income in cash from withdrawals by the company where they work then that is enough to maintain cash circulation among the lower classes.

This limit is not completely limiting, according to the article there is a 5-10% fee for withdrawing more than the conditions and that I don't think is a problem for the company.

The limit is going to have a challenge on the Nigerian masses because it is barely limiting individuals from having 50% of cash to run the home. Nigeria is still predominantly a country not urbanized like the technological advanced countries so it is going to be difficult for the market women that do day to day selling a problem. The older businesses that are not in the line of internet banking will also have big challenge. The 5% charge for wanting to overburden the rules is still high.

Withdrawal restrictions are usually carried out by the central bank to control the value of fiat, as we know that most fiat will continue to decline, especially when the supply or stock of goods decreases so that the price is out of control, when restrictions on withdrawals, people will limit buying so that it can automatically prevent price increases or inflation.

This restriction will have quite an impact on the industrial, agricultural and SME sectors across Nigeria, the idea of limiting the amount of cash withdrawals is not a solution to improve the economy of the people there, as they say they will charge additional withdrawal fees in the process of 5% and 10% respectively . This idea is too forced in my opinion, because in general it does not benefit any party other than the local government.

Not all sectors have the resources to make transactions using digital money, so the idea of limiting the amount of cash withdrawals will hamper the process of marketing SME products and the general distribution of other companies. Although the push to make exchanges through digital cashless means can be carried out independently, the problem is whether Nigeria has the current supporting resources.

The impact will be seen after the regulations come into force, it is possible that the reaction to the results will be an evaluation of the policy by the government there.

The idea to limit cash withdrawals in a day was actually preposterous in my opinion it's more like putting a limit to business transactions. But it's a good thing they've finally considered putting an increase to weekly cash withdrawals.

 As against the initial $225 for individual withdrawals, it has been increased to $1,125 while for corporate entities, the bar was raised from $1,100 to $11,000.
 But if such changes can be made after the outcry of the public, then what's the point of putting a limit?

Although this may not go well with most Nigerians but I see it as a very nice policy as this will help to make crypto currency more known to people in the long run.

The idea of limiting cash withdrawals will have quite a big impact on companies and SMEs there, but it seems the cash withdrawal restrictions have been grounded as the Central Bank of Nigeria plans to withdraw and replace their government's redesigned Naira banknotes, although the source is unconfirmed. However I think the restrictions put in place by them will have an impact on the stability of the Nigerian economy once the restrictions come into effect.

The resources owned by Nigeria have not maximally accommodated digital exchanges through non-cash means, therefore the negative side will always be a problem for the decisions taken.

Every policy taken will definitely have an impact, but the most important thing is don't force it if you don't have the resources and other support, it looks like Nigeria is trying to make a fast process without cash. This country doesn't have strong enough resources and available technology, so it will cause confusion among the people there.

This is a very good point, I think too. This is a good thing for crypto because this policy will cause people to lose faith in fiat even more. People will be looking for a better alternative, and the only option that people can find is a cryptocurrency and more specifically bitcoin. A currency, the asset, is not controlled by anyone, so withdrawal will become extremely easy. 

I don't know what the real goal of the government is, but it seems that the Nigerian government is very stuck in controlling its economy, they are constantly introducing changes, but it has not worked.

This cash policy is aims to curb some of the negative consequences associated with the high usage of physical cash in the economy, including:

👉👉High cost of cash: There is a high cost of cash along the value chain - from the CBN & the banks, to corporations and traders; everyone bears the high costs associated with volume cash handling.

👉👉High risk of using cash: Cash encourages robberies and other cash-related crimes. It also can lead to financial loss in the case of fire and flooding incidents.

👉👉High subsidy: CBN analysis showed that only 10percent of daily banking transactions are above 150k, but the 10percent account for majority of the high value transactions. This suggests that the entire banking population subsidizes the costs that the tiny minority 10percent incur in terms of high cash usage.

👉👉Informal Economy: High cash usage results in a lot of money outside the formal economy, thus limiting the effectiveness of monetary policy in managing inflation and encouraging economic growth.

👉👉Inefficiency & Corruption: High cash usage enables corruption, leakages and money laundering, amongst other cash-related fraudulent activities.

Reference: https://www.cbn.gov.ng/cashless/

The withrawal limit for fiat seems like the government wants to slow down on producing paper money and stick to generating more CBDCs. Although this can be a good preparation to go cashless in the years to follow, but it could also trigger negative impressions from the citizens. In fact, this will also encourage crypto enthusiasts to finally shift to cryptocurrencies than trusting CBDCs as they are still government produced and controlled, same with fiat.

They are indeed pushing the people to go for digital economy forcefully as many experts says that many developing country try their luck to have a boosted economic through what so called 'crypto hype' and catch what they have left from those richest country.

Not sure if this way might work ... but yeah worth to try and let's see it.