Cashless Policy to Finally Kick Off Across Nigeria Come July 1- CBN

Nigeria’s Apex Bank and banking sector regulator, Central Bank of Nigeria, says the take-off of the third and final phase of the cashless policy in 30 states in Nigeria will kick off July 1, 2014. CBN stated this in a press statement, which also stated that the decision to roll off the policy in the states followed the successful completion of phases 1 and 2 in six pilot states and Abuja. Phase 1 of the scheme took off in Lagos on January 1, 2012, while additional states, namely Abia, Anambra, Kano, Ogun and Rivers States, as well as Abuja, were involved in Phase 2, which commenced on October 1, 2013. The bank also pointed out that as was the case in the pilot states, a one-year waiver has been granted on the application of withdrawal charges in the 30 states. “This means that withdrawal charges will continue to apply to transactions above the specified limits in Abia, Anambra, Lagos, Ogun, Kano, Rivers State and the Federal Capital Territory (Abuja),” CBN said. The charges on withdrawals for both individual and corporate account holders, the regulator said, would only take effect in the 30 States from July 1, 2015. It explained that the waiver would allow ample time for the deployment of adequate infrastructure needed to support the policy, as well as additional sensitisation of various stakeholders on the merits of the policy. In effect, a 3 per cent charge for daily individual cumulative or single cash withdrawals in excess of N500,000, as 5 per cent charge on daily cumulative or single cash withdrawals in excess of N3 million would be suspended in the affected states until further notice.