Business Hilights
Tracking Nigeria's Headline Business News Online

Deposit charge on cashless policy implementation anti MSMEs—MAN

Says CBN acted without consultations

The leadership of Manufacturers Association of Nigeria (MAN) has again, faulted sudden imposition of surcharge especially on cash deposits from N500,000, saying such unilateral policies will have negative impact on the Micro, Small and Medium Enterprises (MSMEs).

In a statement signed by the Director-General, Segun Ajayi-Kadir, MAN described the MSMEs as the engine room of the economy, especially due to its employment generation capacity.

In his argument, Ajayi-Kadir decried that the Central Bank of Nigeria (CBN) failed to make any consultations and sensitisation of the relevant stakeholders before reintroducing the surcharge angle of the cashless policy.

MAN further decried that even within the select states for the surcharge on both cash despots and withdrawals, not enough relevant infrastructures are put in place by digital payment systems in markets and banks.

Ajayi-Kadir also noted that by MAN’s checks, the necessary infrastructure that would support and drive the policy before announcing it are yet to be in place.

According to him, “The charges on withdrawals may have a negative impact on Micro, Small, and Medium Enterprises that are clearly the engine room for growth of the economy and employment generation.”

“It appeared the CBN decided to penalise non-compliance, adding that rather than introduced gains for those who embraced cashless transactions, it opted to punish those who had not, including those operating in genuinely large cash-driven economic activities.

“MAN, therefore, urges the leadership of the CBN to think through other available options to achieve its cashless policy scheduled to be fully implemented throughout the country from March 31, 2020.”

Recall that the CBN had in a circular to Deposit Money Banks stated that from Wednesday, September 18, it would impose three per cent processing fees for withdrawal and two per cent processing fees for lodgments of amount above N500, 000 for individual accounts on cash transactions.