Cash Withdrawal Limit, New Naira Notes and Top Economic Decisions by FG in 2022, Implications
- There are economic decisions taken by the Nigerian government in 2022 that have reverberated across the country
- Such decisions like new naira notes, National Domestic Card Scheme and others shaped 2022 economically
- Also, the Nigerian government introduced some tax regimes that many says affects the economy
The outgoing year 2022 was as eventful as it was economically difficult for many Nigerians.
They witnessed a flurry of decisive, economically impactful and life-changing events in 2022.
There are serious economic decisions taken by the Nigerian government that shaped and shook the country.
Cash withdrawal limits
On December 6, the Central Bank of Nigeria (CBN) took its cashless policy a notch higher by introducing cash withdrawal limits on all channels.
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The apex bank stated that effective January 19, 2023, banks would limit cash withdrawals above certain thresholds across the country.
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Specifically, the bank said over-the-counter withdrawals would be limited to N100, 000 for individuals and N500,000 for corporate bodies per week.
Also, the bank said ATM and Point of Sale (PoS) withdrawals would be limited to just N20,000 daily.
Opinions are divided over the decision of the apex bank with many saying the policy is against the growth of the economy.
New naira notes
Nigerians woke on October 24 this year to hear that the CBN would redesign some denominations of the Nigerian currency.
The bank stated that effective December 15, 2022, there would be newly redesigned notes making the rounds in the country.
The news jolted the nation which said that the bank's decision was sudden and would impact the country negatively, economically.
CBN had said its decision is to rein in excess cash in circulation probably hurting the local currency.
According to CBN, about 80 per cent of the money in circulation is outside the banking system.
On Wednesday, November 2022, President Muhammadu Buhari unveiled newly redesigned N200, N500, and N1,000 notes.
Per the statement by CBN, the old notes would cease to be legal tender by January 30, 2023.
National Domestic Card
The CBN also announced to Nigerians that it is embarking on a national card scheme effective January 2023.
The apex bank said it will seek to unify payments and strengthen the country’s card system with the introduction of the National Domestic Card which it says would ease transactions.
In partnership with the Nigeria Interbank Settlement System (NIBSS), the National Domestic Card would bring all payments under one system.
The implication, according to analysts is that ATMs and other card-payment systems might be phased out by the central bank in 2o23.
Inflation jumps to 17-year high
Nigeria witnessed unprecedented inflation in the outgoing year.
Inflationary pressures pummeled Nigerians as the cost of living skyrocketed and household incomes eroded drastically.
In response to the inflation, CBN increased benchmark interest rates amid the depreciation of the naira which also witnessed the highest fall in 20 years.
No matter the impact of economic decisions by the Nigerian government, 2022 remains one of the most eventful years in the country