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The Manufacturers Association of Nigeria (MAN) has warned that the Central Bank of Nigeria-proposed reintroduction of cashless policy will impact negatively on the economy.
Director-general of MAN, Segun Ajayi-Kadir, said the implementation of cashless policy on withdrawals may have a negative impact on micro, small, and medium enterprises (MSMEs) who are clearly the engine room for growth of the economy and employment generation.
The apex bank, in a circular, directed deposit money banks (DMBs) to charge on deposits, in addition to already existing charges on withdrawals, 3 per cent processing fees for individual accounts, withdrawals in excess of N500,000 and 5 per cent for corporate accounts withdrawal in excess of N3 million.
It also introduced processing fees for cash lodgments of 2 per cent above N500,000 for individual accounts and 3 per cent for lodgment above N3 million for corporate accounts.
“Even though one may agree with the CBN governor that it is in the public interest to promote an efficient payment system via the cashless policy, there is need to examine the route you choose to achieve that objective, and I think this is the crux of the matter and appears to be a recurring decimal in the administration of our monetary policy interventions,” Kadir said.
