Some financial experts and businessmen on Tuesday, August 11, said the Central Bank of Nigeria (CBN) limit on cash withdrawal via the Automated Teller Machine (ATM) may lead to a disruption of cash flow.

They spoke against the CBN policy which pegged the daily cash withdrawal from the ATM at N60,000 from N150,000 ($300 dollars).

A woman takes Nigerian Naira from a bank's automated teller machine (ATM) in Ikeja district in the commercial capital Lagos November 12, 2014. Nigeria's naira currency weakened slightly on the interbank market on Tuesday due to strong demand for dollars from foreign investors.

They told the News Agency of Nigeria (NAN) in Lagos that the policy was a contradiction of the cashless regime earlier espoused by the apex bank. An economist, Dr Evans Osabuohien, said that the policy was a contradiction of the cashless policy of the CBN. Osabuohien, who lectures at the Department of Economics and Development, Covenant University, Ota, Ogun, added that the policy would have adverse effects on businessmen.

”The policy will lead to hardship in the economy and it will affect the confidence of businessmen in the banks. I think this policy may force people to keep their monies in their houses with the attendant security risks,’’ ,’’ Osabuohien said. The don noted that the policy might force bank users to look for other ways of banking their money without undue restrictions.

The policy is part of CBN measures to curb illicit financial flows out of the economy. Another financial expert, Prof. Sheriffadeen Tella, believed that the policy was only going to be a temporary measure. According to him, the directive is not a major instrument for the strengthening of the naira.

Tella, who lectures at the Department of Economics, Onabisi Onabanjo University, Ago Iwoye, Ogun, said the policy was an attack on the CBN cashless policy. ”We are not running a full cashless economy yet. The CBN would have raised the bar higher for those who want to make huge transactions,’’ Tella said. - See more at: http://www.exlinklodge.com/2015/08/consequences-of-atm-cash-withdrawal.html#sthash.YlukzwOu.dpuf







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I don't really know what is happening to Emefiele. His policies of late are absurd and legendary when it comes to folly.

Na d ordinary man dem wan suffer so. U don't starve or family cos u're saving money 4 a house project. Don't suffer d masses because u want to strengthen the economy

Its hightime that the Cbn Governor stopped using only monetary policy to run the economy. This is where we need the ministers to collaborate with the Cbn Governor. We done enter this market for the next 4 years sha

willyede:
Its hightime that the Cbn Governor stopped using only monetary policy to run the economy. This is where we need the ministers to collaborate with the Cbn Governor. We done enter this market for the next 4 years sha

The CBN which is an apex bank is a financial institution and the major player in the money market. So what other policy would you rather them use. Or you don't know what the CBN is. The problem is on the side of the government, who in this dispensation are so cowardly in attempting to offer any policy

D gist is thers an overflow of naira in d system, chasing very limited greenbacks which in turn is responsible for d downturn of its strength. So gues d policy is aimed at curbing d liquity of d naira running amok. Remains to b seen if it achieves d desired result.