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New CBN Policy Will Lead to More Job Losses, Business Confusion – Don University

Lecturer at the Department of Economics at Ahmadu Bello University, Professor Isaac Modibo, criticized the new cash withdrawal policy imposed by the Central Bank of Nigeria.

DAILYPOST reports that, on Tuesday, the Central Bank of Nigeria imposed new cash withdrawal restrictions on individuals and institutions.

The new policy, which is effective from January 9, 2023, is indicated in a note to banks issued on Tuesday and signed by the Director of Banking Supervision, Haruna. Mustafa, stated that individuals will only be able to withdraw N100,000 per week (over the counter, from POS machines or ATMs), while organizations can access N500,000 per week.

Banks have also been directed to load N200 and lower denominations into their ATMs.

In a reaction Wednesday morning in Kaduna, Professor Isaac Modibo, a senior lecturer, noted that the new policy, if implemented, would cripple the economy, leading to more job losses.

According to him, all point-of-sale (POS) operators will lose their jobs as CBN has set a daily withdrawal limit of N20,000 per day, adding that business transactions involving cash withdrawals will also disappear as the policy will make people poorer.

He stressed that these wealthy Nigerians will become poorer, as they will no longer be able to access their money, adding that there will be a scarcity of money in circulation, which will badly affect the economy.

“When the school principal or school owner demands your children for school fees, your children have to stay back for days and weeks withdrawing hundreds of naira before going back to school because the school management may not even want to transfer. This time, only a few people may need to transfer Electronic money. Everyone needs cash with limited circulation.”

New CBN Policy Will Lead to More Job Losses, Business Confusion – Don University

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