•Doubt initiative’ll curb inflation
By Merit Ibe
The Manufacturers Association of Nigeria (MAN) and the Lagos Chamber of Commerce and Industry (LCCI) have commended the decision by the Central Bank of Nigeria (CBN) to suspend processing fees on cash deposits above specified thresholds, saying the policy has positive implications for the business community and the economy.
Commenting on the apex bank’s announcement which will last till April 30, 2024, the Director General of the chamber, Dr Chinyere Almona, noted that the policy adjustment will eliminate an additional financial burden on businesses and individuals, contributing to a more conducive business environment.
As outlined in the “Guide to Charges by Banks, Other Financial Institutions and Non-Bank Financial Institutions” issued on December 20, 2019, under reference FPR/DIR/GEN/CIR/07/042, individuals making cash deposits above N500,000 and corporates above N3,000,000 were subject to processing charges of 2 percent and 3 percent, respectively.
Almona pointed out that the move aligns with the government’s commitment to improving Nigeria’s ranking on the global ease of doing business index and “ this also demonstrates responsiveness to the needs of the business community, fostering trust in the regulatory framework landscape.
However, the immediate past chairman of MAN, Frank Onyebu, who applauded the stance of the apex bank, argued that the move alone would not be enough to curb inflation. “I indeed agree with the CBN to the extent that reducing currency in circulation would have a positive effect on inflation. That alone would however, not be enough to curb inflation. The government needs to seriously look into significantly reducing the cost of governance.”
It’s not fair to allow poor masses bear all the hardship resulting from gross mismanagement of the economy while the size of government increases by the day. I call on the government to, as a matter of urgency, cut down on waste, profligacy and corruption.”