That is why I found a recent article interesting (Read here). According to this article, the Central bank announced a new cumulative limit to the withdrawal of cash for both individuals and corporations. This leads to the following questions:
- Knowing Nigeria, and the dependency of the country on cash, I am intrigued how it is possible that this legislation could possibly fly. How is it possible to restrict the supply of cash, when electronic payment infrastructure are limited and cheques are viewed with apprehension.
- Also, the application of this directive will be difficult. To really ensure that banks adhere to this direction, integration between banks will have to be much tighter. The cost and infrastructure required could surely be spent on other parts of the banking industry.