Despite its launch in 2021, the CBN regrets that a significant portion of the population has yet to utilize the e-Naira platform.

During a campaign and sensitization event held at the University of Uyo, the Akwa Ibom Branch Controller of CBN, Mercy Itohan Ogbomonpaul, appealed to staff and students of the university to adopt the e-Naira platform.

Ogbomonpaul, represented by Assistant Director Isang Agbomi Enya, emphasized that the e-Naira would facilitate monetary policy decisions and address the drawbacks associated with physical cash transactions.

The CBN Controller reassured attendees of the e-Naira’s security, noting that it would be more difficult for individuals or organizations to engage in fraudulent activities.

Ogbomonpaul stated, “By embracing e-Naira, we can align ourselves with other countries where e-payment has replaced physical cash. Instead of relying on physical cash, we can utilize e-Naira as a transactional instrument. This is crucial as the Naira, being costly and challenging to replace, presents significant obstacles.”

“The adoption of e-Naira will help us address the deficiencies observed in cash transactions and aid our policy-making processes, particularly in monetary decisions. Having everyone on the e-Naira platform will allow the central bank to assess the volume of transactions and make informed monetary policy choices.”

Ogbomonpaul highlighted that other countries have progressed beyond physical cash payments and are now predominantly using e-payment systems.

In contrast, Nigeria still lags behind. He emphasized the need to conduct business transactions without relying heavily on cash due to the associated management costs.

In response, Prof. Nyaudoh Ndaeyo, the Vice Chancellor of UNIUYO, expressed the institution’s enthusiasm to support the e-Naira initiative and collaborate with the CBN.

Additionally, Ndaeyo encouraged the apex bank to extend its efforts beyond the university campus and educate communities about the benefits of the e-Naira, further suggesting potential collaboration in the agricultural sector.

The Director, Corporate Communication Department, Mr. Isaac Okorafor, made the clarification in an interview with News Agency of Nigeria (NAN) in Abuja on Monday.

NAN reports that CBN on Sept 17 issued a circular to deposit banks to commence the implementation of the cashless policy in six pilot states across the country.

The CBN explained that transactions would attract three per cent processing fees for withdrawal and two per cent processing fees for lodgement of amounts above N500,000 for individual accounts.

Similarly, corporate accounts would attract five per cent processing fees for withdrawal and three per cent processing fees for lodgement of amounts above N3 million.

The apex bank directed that implementation should commence from Sept. 18 in Lagos, Ogun, Kano, Abia, Anambra, and Rivers States, as well as the Federal Capital Territory (FCT).

It, however, stated that the nationwide implementation of the cashless policy would take effect from March 31, 2020.

Okorafor explained that contrary to the misconception on the implementation of the policy, the charges would only be on the excess of N500,000 deposited or withdrawn for individual and N3 million for corporate body

According to him, if an individual deposited N510,000 the two per cent charge would be on the N10,000 excess which is N200 only.

He said the same applied to a withdrawal of the same amount, adding that the three per cent charge would be on excess of the set limits.

He said that the same thing also applies to the corporate body also which five per cent on withdrawal and three per cent on lodgement of amounts above N3 million.

Many Nigerians welcome the development, noting that it would enhance transparency in financial dealings and reduce crimes such as ransom payment and extortion among others.

Others, however, described it as additional burden on banks’ customers who were already laden with other charges by the banks.

CBN Governor Godwin Emefiele had also said, after the Monetary Policy Committee meeting on Friday in Abuja, that the policy was inaugurated in the country in 2012 and implementation began in 2014.

“The policy says if you deposit money in the bank above a particular threshold which for individual is N500,000 and N3 million for corporate bodies, then you will be charged, same for withdrawal.

He stated that the policy was not designed to de-franchise hard working Nigerians as perceived by some categories of people.

According to him, data conducted revealed that close to 95 per cent of cash deposited and withdrawn fall below this threshold.

Emefiele said Nigerians had already embraced electronic channels and online transaction in market places.

He added that Micro, Small and Medium Enterprises now had various options and channels available to collect a legitimate payment for goods and services, like POS, banks transfer using ATM, USD code among others.

He said that the cashless policy increases transparency in financial dealings and reduce crimes such as ransom payment and extortion among others.

The governor said the bank had the mandate under the CBN Act 2007 as amended to promote a sound and stable financial system through credible efficient payment system.