This is a good idea, people should start planning adjust to it as they have adjusted to the N10m transfer rule, moreso we have 1yr notice.

I think that CBN's trying to prevent a financial crisis akin to the one that happened in the U.S. from taking place in Nigeria. CBN's trying to allow banks to hold smaller amounts of money in their reserves or trying to allow for greater numbers of people to be able to withdraw from their accounts at the same time, while allowing banks to invest as they usually do. Doing so should allow banks to very quickly recover in the event of a rather small financial decline, but, really, will not prevent the damage a recession or depression may cause.
This is just what I think they're doing, though. They might be trying to stimulate the growth of a cashless economy or allow for the development of credit in Nigeria, in which case this reform is really just a total fail.

@POST

Does Sanusi understand the degree or nature of electricity supply in Nigeria before issuing retarded policy? Banking technology is zero in Nigeria due to lack of electricity, the personals of the institution are junk judging from the personality of Sanusi, Nigerian society has no buffer in place to sustain institutional trust yet the CBN dreamt of this ridiculous monetary policy. Sanusi and CBN are totally removed from the business and monetary culture found in Nigeria.

Even in countries with technological know-how and workable banking system, huge amount of cash withdrawal and payment for business transaction are allowed. Anyway, this type of junk is expected from a jungle called Nigeria.

This is a good idea, but like many good ideas in Nigeria, its doomed to fail for lack of proper planning!
Sanusi is trying to enforce cashlessness on the Nigerian economy, yet he fails to realise that so many requirements must be met before this can work.

Let's evaluate some possible options:

1. Telephone Banking
Issues:
What's the current awareness level of the consumers? Is a 1-year period enough to bring the majority of the consumers up to speed?
Given the prolifereation of phone hacking software, do we have an existing legislation for protecting consumers against such loss or prosecution of phone hackers? Doesn't this heighten the risk (if consumers are not protected against loss) to the consumer rather than reduce it?

2. Internet Banking
Issues:
Wow! This is the real deal, but what's the current infrastructural level? How much bandwidth is available to the avergae consumer?
What is the computer literacy/internet literacy level of the average consumer? What about the RISK? Given that criminals are always 'following the money' they will be happy to move into the 'virtual playing ground' alongside the consumers, merchants and financial organisations. This is especially an attractive proposition for the criminals because we don't currently have a law that allows online criminals to be prosecuted.

3. Excessive charges
This is a NO NO! The fundamental issues must first be addressed before this can come into play. You can't just wake up in a morning and decide to do what you like! Not even if you're a CBN governor.
Also, how did they come about the NGN150,000 limit? What is the current limit? Is there a convincing proof that reducing the limit will significantly reduce the risk of robbery?

Finally, has the power issue been addressed? This may not be obvious, but if we are to go down the route of available options, a lot depends on the availability of electricity (think POS, e-banking, ATM, telephone banking). Power problem, if not addressed, will then create another layer of problem for the average consumer as s/he now needs electricity to do smthg which s/he would otherwise not have needed it for.

Think Sanusi. Think!

otondo55:

Mr Man, Even as your imposing this limit,

Also tell us what you intend to achieve with this, step by step.

You MUST seek people's opinion before such is carried out.

The necessary infrastructure must be keep in place unlike

what we are experiencing with the ATM currently.

It MUST NEVER be a fire bridge approach

you obviously didnt read the article, which people's opinion the man on the street or the banks that knows the percentage and profile of people withdrawing 150k/day; who was consulted before the banks introduced atm cards and internet banking, they should also cancel internet banking
cos there's no light and the people are illiterate

if you can send an sms you can send money = www.pagatech.com not exactly rockety science

hercules07:

@Papa

You are thinking in one direction, the baker can get a POS terminal, most of those people selling bread have savings account with UBA, they can pay via their cards, he can also break his deposits down into smaller bits, I am into IT and I can see this thing working, POS terminals will most likely be fixed which means network access is going to be easier, the specification can just be that they must be able to connect to more than one network at a time, we need to move with the times.
I know you do not like Sanusi, but, I can tell you that this is one of his better ideas, it might take time getting used to it, but, it is absolutely necessary. I run a business that deals with smaller businesses and I do not give out cash in my dealings, I only deal with you if you have an account, I insist on my clients transferring money to my account, not even issuing cheques, I issue cheques to people, I do foreign transfer all the time and I try as much as possible to make it cashless, do you think if I have 30,000 dollars to change and I insist that the aboki must get a POS he will not get it, he knows that I change up to 500K in a year and he is not ready to lose that business, Abokis are smart, they will make sure that they comply, it even helps them, they do not need to carry dagger on their person every time they are carrying cash up and down.

This a complicated way to force society to operate. I have a headache'

!rejoice:

This is a good idea, but like many good ideas in Nigeria, its doomed to fail for lack of proper planning!
Sanusi is trying to enforce cashlessness on the Nigerian economy, yet he fails to realise that so many requirements must be met before this can work.

Let's evaluate some possible options:

1. Telephone Banking
Issues:
What's the current awareness level of the consumers? Is a 1-year period enough to bring the majority of the consumers up to speed?
Given the prolifereation of phone hacking software, do we have an existing legislation for protecting consumers against such loss or prosecution of phone hackers? Doesn't this heighten the risk (if consumers are not protected against loss) to the consumer rather than reduce it?

2. Internet Banking
Issues:
Wow! This is the real deal, but what's the current infrastructural level? How much bandwidth is available to the avergae consumer?
What is the computer literacy/internet literacy level of the average consumer? What about the RISK? Given that criminals are always 'following the money' they will be happy to move into the 'virtual playing ground' alongside the consumers, merchants and financial organisations. This is especially an attractive proposition for the criminals because we don't currently have a law that allows online criminals to be prosecuted.

3. Excessive charges
This is a NO NO! The fundamental issues must first be addressed before this can come into play. You can't just wake up in a morning and decide to do what you like! Not even if you're a CBN governor.
Also, how did they come about the NGN150,000 limit? What is the current limit? Is there a convincing proof that reducing the limit will significantly reduce the risk of robbery?

Finally, has the power issue been addressed? This may not be obvious, but if we are to go down the route of available options, a lot depends on the availability of electricity (think POS, e-banking, ATM, telephone banking). Power problem, if not addressed, will then create another layer of problem for the average consumer as s/he now needs electricity to do smthg which s/he would otherwise not have needed it for.

Think Sanusi. Think!

There is nothing wrong with this policy. I think all the required infrastructure are already in place. The missing piece is forcing people to change their attitude to cash which I believe is what Sanusi is trying to achieve.

For those shouting electricity, check out the following:

First Data launched the FD400, the first low-cost, battery-powered, wireless point-of-sale terminal using 3G wireless network technology.  For merchants who do not have constant access to both a power source and communication line, it’s awesome.

The cost of these devices is similar to what people spend on mobile phones. Also if you can use mobile phone, you can use this devices. I know one Nigerian card company that deployed services based around similar devices as far back as 2006.

Some people will be shouting impossible while others will be making a lot money by positioning themselves for the takeoff of the policy. I don't think the opinions expressed on nairaland matters in anyway. If CBN and the banks have agreed, it only needs the support of the FG and I don't see FG support being witheld.

you obviously didnt read the article, which people's opinion the man on the street or the banks that knows the percentage and profile of people withdrawing 150k/day; who was consulted before the banks introduced atm cards and internet banking, they should also cancel internet banking
cos there's no light and the people are illiterate

ATM cards did little or nothing to reduce the quantum of cash in the economy, and no strict restrictions were imposed either .People were given options, you could withdraw with ATM or go to the cashier at no extra cost.Also, Nigerians experienced a lot of security issues with the introduction of the ATM with many people loosing so much amount of money which the banks did little or nothing to settle.There are so many issues with the ATM which are yet to be addressed.Also, the internet banking is yet to be fully accessed by Nigerians due to the issue of security, power, ignorance etc These concerns of Nigerians need to be addressed to pave way for the introduction and adoption of a cashless economy which most of us desire. The CBN should stop using the fire brigade approach in handling a sensitive sector such as the banking sector.People's confidence in the e-transactions need to be restored and improved where necessary. One year is definitely not enough to IMPOSE an electronic banking system.

Sanusi is driving the Monetary policy towards the exact opposite direction of success  - instead of instillation more freedom of capital he is doing the exact opposite. Is he trying to create a communist order ? i suspect so.

pluto04:

There is nothing wrong with this policy. I think all the required infrastructure are already in place. The missing piece is forcing people to change their attitude to cash which I believe is what Sanusi is trying to achieve.

For those shouting electricity, check out the following:The cost of these devices is similar to what people spend on mobile phones. I know one Nigerian card company that deployed services based around similar devices as far back as 2006.

Some people will be shouting impossible while others will be making a lot money by positioning themselves for the takeoff of the policy. I don't think the opinions expressed on nairaland matters in anyway. If CBN and the banks have agreed, it only needs the support of the FG and I don't see FG support being witheld.

You are a socialist. It is not worth arguing with you because this is ideological- well i believe people should be allowed freedom to do what they like so they can venture into business without fear or punishment of any sort. Why punish people for having to build a business and make daily cash transactions? why my friend.

MAKING A WIRE TRANSFER OF USD30,000 TAKES FOREVER. APPARENTLY, IN INTERNATIONAL BUSINESS, GOODS ARE PACKAGED AND SHIPPED AFTER RECEIPT OF PAYMENT. MAKING AN URGENT INTERNATIONAL BUSINESS TRANSACTION WORTH USD1m IN NIGERIA IS CRASS BECAUSE OF CBN POLICY ON FOREX TRANSFER. THE POLICY PEGGED USD5000 AS THE MAXIMUM WEEKLY TRANSFER. TELL ME HOW MANY WEEKS IT WILL TAKE TO TRANSFER USD1M. SOME POLICIES NEED CLAUSES,

yeswecan:

You are a socialist. It is not worth arguing with you because this is ideological- well i believe people should be allowed freedom to do what they like so they can venture into business without fear or punishment of any sort. Why punish people for having to build a business and make daily cash transactions? why my friend.

How does my opinion make me a Socialist? Do you even understand the term 'Socialist'? How is this policy 'punish people for having to build a business and make daily cash transactions'?

@koolking

Where the heck are you getting that piece of information from, I transfer far in excess of that amount, infact, I am transferring close to 20K on tuesday, abeg, change your bank, if you use GTBank, their transfers are like a day or two, even other banks will transfer max 3 days.

Some funny views to the policy (Laugh over it but also think about it) :  

1. Na to dey store gold for house na

2. Everybody should go and build his own strong room.

3. Armed robbers and kidnappers will be going around with their own portable "stealing machines"

4. Renewed business for yahoo boys. Target: Abokis using e-banking

mrjingles (m)
lasgidi in 9jigi
Posts: 217

Offline

Re: CBN Imposes Limits, Penalty On Cash Transactions, Again!
« #208 on: Today at 05:58:25 AM »
THIS IS AN EXCELLENT POLICY ask me how i Know this- BECAUSE MOST POSTERS HERE DISAGREE WITH IT! Clearly most posters  don't understand the policy and are just displaying their ignorance. For those who are not aware this is just a phase in a process that commenced YEARS ago.

I know you made claim to have better understanding BUT your post shows you probably did not read that article.

pluto04:

There is nothing wrong with this policy. I think all the required infrastructure are already in place. The missing piece is forcing people to change their attitude to cash which I believe is what Sanusi is trying to achieve.

For those shouting electricity, check out the following:The cost of these devices is similar to what people spend on mobile phones. Also if you can use mobile phone, you can use this devices. I know one Nigerian card company that deployed services based around similar devices as far back as 2006.

Some people will be shouting impossible while others will be making a lot money by positioning themselves for the takeoff of the policy. I don't think the opinions expressed on nairaland matters in anyway. If CBN and the banks have agreed, it only needs the support of the FG and I don't see FG support being witheld.

You sabi book but not so much my friend or how else do i explain your GIBBERISH,

This is not about SERVICE PROVIDERS mate, end users must and only be the factor when considering such a complex policy.

Asides computer literacy level,can you point to a SINGLE internet service provider in Nigeria that is 95% reliable compared to where your moronic mentor is copying?

I have had to wait for 24hrs to have my account credited with a deposit made the previous day because their system was down all day, BankPHP to be precise.

Its common sense mahn,it wont work.it cant work.its pointless.Whoever said the bankers committee know anything about core advanced & sophisticated banking?They are a bunch of one eyed duumb asre monkeys leading blind folks.They trade on the market but cant even come up with products like derivatives to hedge risk afterall their equities are the most traded and they indirectly determine market pace.Dont even wanna hear anytin about SEC or NSE cus naija banks determine market liquidity mostly.All they do is speculative and roundtrip,deal in black market forex,invest in offshore coy's and issue loan to pathetic loosers plus a little bit of investment in property with laundered money, Bullocks

Our space satellite technology got to be up and running.Most households must have access to uninterrupted power supply with good broadband internet connection, Then we can start talking about policies like this, dudes actually more foooolish than i thot,

Oh Sanusi stewpid he-goat

pluto04 (m)
Venus
Posts: 105

There is nothing wrong with this policy. I think all the required infrastructure are already in place. The missing piece is forcing people to change their attitude to cash which I believe is what Sanusi is trying to achieve.
________________________

You said there's nothing wrong with the policy, yet you concede that Sanusi is trying to force people to change their attitude to cash.
I take it that forcing a people to change their attitude in a democratic society isn't wrong too. Or is it?

pluto04:

How does my opinion make me a Socialist? Do you even understand the term 'Socialist'? How is this policy 'punish people for having to build a business and make daily cash transactions'?

Are you serious?  A policy that prevents free movement of capital by individuals and corporations - that impose a penalty on HUGE cash transaction is anti-capitalist in its very nature. What do you understand by socialism as an economic theory? Funny dude

The dawn of the Nigerian e-fraud era beckons.

I forsee tips not being given again, rich relatives dodging cash gifts, cash n carry aristos having a hard time, even political thugs will become sophisticated  

On a positive note people lets be constructive. If it will happen what do you suggest? Kindly share ideas how we can adapt cos the infrastructures are not in place. Moaning and crying will not change anything. This will stand.

1. If unemployed, get POS/ATM hardware skills (eg repairs ).
2. IT/programming skills also come in handy especially for mobiles.

What else do you think?

Koolking:

MAKING A WIRE TRANSFER OF USD30,000 TAKES FOREVER. APPARENTLY, IN INTERNATIONAL BUSINESS, GOODS ARE PACKAGED AND SHIPPED AFTER RECEIPT OF PAYMENT. MAKING AN URGENT INTERNATIONAL BUSINESS TRANSACTION WORTH USD1m IN NIGERIA IS CRASS BECAUSE OF CBN POLICY ON FOREX TRANSFER. THE POLICY PEGGED USD5000 AS THE MAXIMUM WEEKLY TRANSFER. TELL ME HOW MANY WEEKS IT WILL TAKE TO TRANSFER USD1M. SOME POLICIES NEED CLAUSES,

Wrong wrong wrong, Maybe you are not credit worthy, lol

Payment policies SOLELY depend on individual business agreements,upfront option dey, 30k is even too small to split, Likewise Business transfers is totally different from personal transfers.Na community bank u dey use?

Whatever happened to ''Letter of Credit''.

!rejoice:

There is nothing wrong with the policy. The missing piece is forcing people to change their attitude to cash which I believe is what Sanusi is trying to achieve.

You said there's nothing wrong with the policy, yet you concede that Sanusi is trying to force people to change their attitude.
I take it that forcing a people to change their attitude in a democratic society isn't wrong too. Or is it?

Experienced change managers will tell you that you sometimes have to use coercion if you want to achieve some kind of changes especially those related to attitude, values and culture. Left on there own, attitude, culture and value don't change. The real question is, is there discernible benefit to all stakeholder? It the benefits are genuine, I think that the use of coercion is in order.

dremoney:

You sabi book but not so much my friend or how else do i explain your GIBBERISH,

This is not about SERVICE PROVIDERS mate, end users must and only be the factor when considering such a complex policy.

Asides computer literacy level,can you point to a SINGLE internet service provider in Nigeria that is 95% reliable compared to where your moronic mentor is copying?

I have had to wait for 24hrs to have my account credited with a deposit made the previous day because their system was down all day, BankPHP to be precise.

Its common sense mahn,it wont work.it cant work.its pointless.Whoever said the bankers committee know anything about core advanced & sophisticated banking?They are a bunch of one eyed duumb asre monkeys leading blind folks.They trade on the market but cant even come up with products like derivatives to hedge risk afterall their equities are the most traded and they indirectly determine market pace.Dont even wanna hear anytin about SEC or NSE cus naija banks determine market liquidity mostly.All they do is speculative and roundtrip,deal in black market forex,invest in offshore coy's and issue loan to pathetic loosers plus a little bit of investment in property with laundered money, Bullocks

Our space satellite technology got to be up and running.Most households must have access to uninterrupted power supply with good broadband internet connection, Then we can start talking about policies like this, dudes actually more foooolish than i thot,

Oh Sanusi stewpid monkey arse foooooool,

Wrong! Common good and not end user is the only factor when talking about policy of government or a public regulatory body. The key question they'll always ask is, will it be for the common good (common benefit of all stake holders, economic viability and economic benefits, sustainable economic growth, etc)? Since you can't debate without calling names and showing what an asswipe you are, I guess that you wont be able to comprehend this. Get your head out of your a-ss and ask a simple question - what are the goals of the policy?

Hi folks, not until you started slashing the liquidity of the poor that your yet to be established policies will be impose this

pluto04:

Experienced change managers will tell you that you sometimes have to use coercion if you want to achieve some kind of changes especially those related to attitude, values and culture. Left on there own, attitude, culture and value don't change. The real question is, is there discernible benefit to all stakeholder? It the benefits are genuine, I think that the use of coercion is in order.

Wrong! Common good and not end user is the only factor when talking about policy of government or a public regulatory body. The key question they'll always ask is, will it be for the common good (common benefit of all stake holders, economic viability and economic benefits, sustainable economic growth, etc)? Since you can't debate without calling names and showing what an asswipe you are, I guess that you wont be able to comprehend this. Get your head out of your a-ss and ask a simple question - what are the goals of the policy?

hahahahaha,u wan start grammar abi? stop bn puerile abeg.

Now bak to basics since you want me to ask questions,

''Exactly what is the difference between your DEFINITION of common good and ''END USERS''? Goals without common sense can kiss ma asre

make overskill no kill your monkey o

The banks will eventually introduce some fancy account types that will avoid this penalty

yeswecan:

[/b]

Are you serious?  A policy that prevents free movement of capital by individuals and corporations - that impose a penalty on HUGE cash transaction is anti-capitalist in its very nature. What do you understand by socialism as an economic theory? Funny dude

Please read the original post - slowly. There is nothing in the policy that prevents free movement of cash. It does not impose penalty on cash 'huge cash transaction'. It is only trying to discourage huge transaction using physical cash and encourage huge transactions using electronic cash. Did you notice the difference mate? This will increase the volume of cash flowing through the system and reduce the volume flowing outside it. There is nothing socialist about this.

dremoney:

hahahahaha,u wan start grammar abi? stop bn puerile abeg.

Now bak to basics since you want me to ask questions,

''Exactly what is the difference between your DEFINITION of common good and ''END USERS'', make overskill no kill your monkey o

I knew that you wont see my definition of common good in my earlier post, let me rephrase it for you

“Common good”, is defined as having a positive effect on a wide constituency of stakeholders, and the system we call “society” as a whole.

common good = common benefit of all stake holders [consumers (cheaper services, reduction in risk associated with cash - robbery, mugging, kidnapping), retailers (reduction in cost of collecting and counting large cash volume, reduced cost for customers), banks (reduction in cost associated with cash infrastructure = cheaper services for the customers, increased profit for the banks), FG (reduction in the cost of printing money which can be diverted to provide other social benefits),  law enforcement agencies (increased ability to trace criminal money for more effective public safety services), new jobs to support new model, improved economic planning and forecasting ability for CBN as the volume of cash 'out there' can now be quantified - economic output can be accurately stated without plucking figures from the air, etc]

I'm sorry, I might just have succeeded in creating more confusion for you.

^^

Thumbs up

I don't seem to understand the rational behind this policy. This policy will rather increase queues in banks as anyone wishing to withdraw large sum of money will have to be going to the bank every day in his/her bid to avoid charges. Moreover keeping large sum in the house is another risk of it's own.

The Federal Govt needs look into it just as it did to Soludo's re-valuation of naira.

A good idea to take Nigeria into a cashless state but i think either the withdraw/deposit limit of N150k or the penalty of N100 per N1,000 is just extremely absurd.
So, if i want to pay for an item say like a car worth 1.5 million Naira, i'll need to be ready to loose N135, 000   all in the name of fine, Sometimes i wonder how some Top decision making executives in this country think? with their butts?