Wednesday brief: Why CBN is reducing cash withdrawals to N100,000
+ Bandits strike in Abuja?? and zombie viruses in Siberia
Good morning.
We are covering why the CBN decided to limit cash withdrawals, a suspected bandit attack in Abuja, and the possible awakening of zombie viruses in Russia.
Why CBN is limiting cash withdrawals to N100,000
The Central Bank of Nigeria on Tuesday announced a cash withdrawal limit of N100,000 and N500,000 per week for individuals and corporate organisations.
Withdrawals above these limits, the bank said, will attract processing fees of 5% and 10% respectively.
The maximum cash withdrawal per week via ATMs was also set at N100,000 with a N20,000 limit per day.
Only N200 notes will be loaded into the ATM, the CBN said.
Meanwhile, the maximum daily cash withdrawal via PoS terminals was also set at N20,000.
The regulatory directive, which is expected to take effect from January 9, has divided opinion. While some argue this is another hasty policy with no sound economic basis from the Godwin Emefiele-led bank, others say it will help to promote the bank’s cashless policy.
The move comes as the bank rolls out redesigned notes, part of a policy to tighten money circulation in the economy.
Quote: “The world has moved away from predominantly cash to cashless economy,” Emefiele said recently. “And I think Nigeria and the Central Bank of Nigeria is prepared at this time to move towards a cashless economy. And that is the reason why with the reissue of these notes, we will ensure that our economy is cashless nationwide, going forward. We will restrict the volume of cash that people can withdraw over the counter.”
What next? : More than half of the Nigerian economy is classed in the informal sector, which runs largely on cash. Is that part of the economy ready for a cashless world?
Related: Nigeria will face “a very real threat” of debt default this decade if there is no significant shift in economic policy backed by sustained high oil prices, according to Charlie Robertson, the chief economist at investment bank Renaissance Capital.
Bandits strike in Abuja?
According to sources who spoke to Vanguard newspaper, suspected bandits abducted a serving National Youth Service Corps member and seven others in Kubwa district, Abuja, late on Tuesday.
One person was also reportedly killed.
The police is yet to confirm the incident but sources said the bandits shot sporadically during the operation.
The US, UK and other western countries had last month warned their citizens to restrict travel into Abuja over imminent threats. But the Nigerian security apparatus, including the police, insisted Abuja was safe.
Asian aid: Envoy Cui Jianchun said China is working with Nigeria to tackle insecurity.
Obi campaigns in Imo, Tinubu speaks to the BBC
The Labour Party presidential campaign train made a stop at Owerri on Tuesday where Peter Obi and his running mate Datti Baba-Ahmed vowed to end strikes by medical doctors and university lecturers.
Meanwhile, the APC presidential candidate, Bola Ahmed Tinubu granted an exclusive interview to the BBC. He said his wealth was made from real estate investments. He also claimed there was no proof he gets a share of the revenue generated by Lagos state.
Quote: “Share what? Have they proven it? The World Bank, IMF have investigated the record in Lagos. What’s wrong with them? It’s envy,” Mr Tinubu said.
What else is happening?
Insurgency war: Some aggrieved soldiers in the North-East have written a letter to President Muhammadu Buhari raising alarm over an alleged move by army authorities to stop payment of operational allowances to troops on the field.
Police brutality: The Minister of Police Affairs, Muhammad Dingyadi, said the Federal Government has fully implemented the demands presented by #EndSARS protesters.
Cybercrime: The police have arrested three suspects over the hacking of a POS platform to steal N16 million in Oyo state.
Babatunde Fashola: The Minister of Works and Housing believes the mindset of Nigerians, not Lord Lugard or colonialism, is responsible for the nation’s underdevelopment.
Olukayode Ariwoola: The Supreme Court said the Chief Justice of Nigeria is not under investigation by the Department of State Services (DSS) over political speech in support of Nyesom Wike.
Odd world: A high court in Lagos dismissed a case filed by a tenant who sued his landlady for not selling her Ikoyi house to him.
Zombie viruses: The thawing of the permafrost in Siberia due to climate change may unleash a new set of ancient viruses on the world, according to a team of European researchers.
And that’s it for today. See you tomorrow.