Moving towards a cashless economy simply means that all transactions would now be done electronically through bank transfer, POS, eCommerce etc. And that’s exactly what the Central Bank of Nigeria(CBN) is aiming at in their latest circular to banks.
News just coming to me indicates that the CBN will now charge a minimum of 2% commission on all deposits and withdrawals above #500,000 for individuals. Corporate organisation would also pay a minimum of 3% on all withdrawal and deposit above #3,000,000.
Below is an excerpt from the email.
What do think about this latest development? Is it a good idea?
First I would say that don’t listen to what CBN and the banks are saying, just watch what they’re doing.
Are their actions really towards a cashless economy or just to create an avenue to easily impose charges and taxes on the average Nigerians.
Recently, the Federal Inland Revenue Service(FIRS) propose to start charging extra VAT on all online transactions as from January, 2020.
If you connect this with what the CBN is doing, it simply means they’re not realy after the benefit the cashless economy will have on average Nigerians. Instead, they’re after the charges and taxes they can impose on us electronically.
I would say taxing us is not a bad idea. It’s just that the more taxes the government collect, the more hungry they get. They would never get satisfied. They would only keep increasing it.
And by the way, are they really using the money collected from tax judiciously? Are they really transparent with it?
I think that’s a question we should ask them. I think that’s of more importance than even increasing the tax. They need to be more transparent and accountable.
How to circumvent the new charges
A good way 👍 to bypass the new charges imposed by the CBN on all deposits and withdrawals above #500,000 is to:
- Deposit or Withdraw below that amount. You can make sure both transactions don’t exceed #300,000
- Use mobile money agents if their charges is less than that of the CBN.
- Use cryptocurrencies to do your withdrawal and deposit, but make sure you hedge your crypto so you don’t loose money.
The bottom line of this article is that the major motive of CBN for us to go into a cash less economy is so that they can monitor and impose more charges and taxes on us. I don’t think they really care about the benefits to the average Nigerians. If they do, they would focus on being accountable and transparent with the money they collect.
I won’t say don’t pay your charges, but find legal ways to prevent or reduce them to the bearest minimum.
If you have any questions or you would like to know more about Cryptocurrencies,don’t hesitate to reach out to me using the comments section below 👇.
Bye for now!