Preview

Central Bank of Nigeria

Powerful Essays
Open Document
Open Document
1599 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Central Bank of Nigeria
A cashless economy is simply at its prime when all means of payments are carried out without the use of physical cash. Payments will range from a list of options such as cheques, wire transfers, debit and credit cards, online transactions, and mobile banking. The advantages of a cashless society are enormous; from regulating, controlling, and securing the financial system of any economy.

The Central Bank of Nigeria, led by its Governor Sanusi Lamido Sanusi, has put forward a policy requiring that all cash withdrawals and deposits be set at a daily limit of a maximum of N150, 000 while pegging that of corporate entities at N l, 000,000, with penalty fees of N100 per extra Nl, 000 and N200 per Nl, 000 imposed on individual and corporate defaulters respectively.

The Central Bank of Nigeria's reasoning behind this policy could be because of a lot of issues affecting the financial system; from trying to check money Laundry and illicit activity, inflation, cost of maintaining an economy predominantly cash base, or just good old change which is one factor that's always constant in life.

If all things are perfect there are still a few down sides to a cashless economy. Money by its nature is abstract. The less cash that flows through our hands, the more intangible it becomes and the more we lose our sense of its real value. Our banked assets are now an electronic apparition, and the fear of not having cash on hand is a downturn.

Nigeria's economy as it relates to forms of payments
Nigeria compared to the rest of the world, as it relates to payments, is still in the era of the wild wild West. To fully understand the situation one has to study the history and analyze factors such as; the Nigerian culture, the role of its government, the state of infrastructure, the level of general education, the availability of real data, the amount of investments made and needed, security as it relates to laws (enforcements and it judiciary) confidence in the system (internal

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Cashless Society

    • 285 Words
    • 2 Pages

    The cashless society has multiple advantage such as reduced crime(no physical money in banks), increased…

    • 285 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    A Cashless Society

    • 1765 Words
    • 8 Pages

    The move to use electronic cash in an ironically termed society dubbed “cashless”; there are many issues that include security, privacy, crime and computerization. We as a society must as a whole be comfortable with this new shift or the tendency to rebel becomes prominent. As the financial institutions have implemented such things as debit cards, credit cards, internet banking, etc, it has slowly brought society into the acceptance zone whereby another step could be taken. Without society being able to understand the pros and cons of electronic cash, the full benefit of the cashless society may never be realized.…

    • 1765 Words
    • 8 Pages
    Powerful Essays
  • Better Essays

    [2] Duesenberry, J.S. and M.F. McPherson (1991) “Monetary Management in Sub-Saharan Africa” HIID Development Discussion Papers no. 369, January…

    • 1119 Words
    • 5 Pages
    Better Essays
  • Good Essays

    Money Transfer in Nigeria

    • 860 Words
    • 4 Pages

    With an estimated 145 million inhabitants (Nigerian Population Census December 2006), Nigeria is unarguably the most populous country in Africa. Since the emergence of the nascent democracy, Nigeria now plays a pivotal role in African migrations. As Africa’s economic giant, Nigeria has also become increasingly involved in international migration to Europe, the US, the Gulf countries and South Africa. Yet Nigeria is a source and destination for country migration in Africa (South Africans, Togolese, Ghanaians, and Beninoise). Considering the key role Nigeria plays in African migration systems, its role as destination, transit and source country, and considering the fact that it is both confronted with the negative and positive dimensions of migration. Nigeria however ranked top amongst global remittances to home country. It scored 65% in the 2003 research by the UNDP on remittances by regions.…

    • 860 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    The Central Bank of Nigeria (CBN) recently reviewed the universal banking system in favour of separate banking licenses under the Banks and Other Financial Institutions Act (BOFIA). The proposed changes are as a result of 2009′s audit of Nigeria’s entire banking sector that found a number of banks in a “grave situation” with a high percentage of non-performing loans in their books, poor risk management, and weak corporate governance structures in place. According to the Central Bank of Nigeria, banks in Nigeria currently carry out a wide range of banking and non-banking services, which include insurance, investment advisory, asset management services, etc, by virtue of the universal banking license regime. The regime, however, has exposed the banking business to greater risks that challenges the stability of the financial system. The new Regulations require banks to divest from all non-banking businesses and obtain fresh licenses to operate as commercial, merchant, specialized or development banks. This paper examines the collapse of the universal banking system and the assessment of the adoption of the specialized banking and holding company model. The paper has carefully examined the causes of the collapse of the universal banking system and assessment of the introduction of specialized and holding banking system. The paper is of the view that although changes in system and structure may have good intention, the supervisory and regulatory authorities should ensure adequate supervision of these banks, so that the nation will have no cause to revert to the repealed system of universal…

    • 10252 Words
    • 42 Pages
    Powerful Essays
  • Powerful Essays

    References: The Move Toward a Cashless Society: A Closer Look at Payment Instrument Economics Swartz, Daniel D. Garcia, Robert W. Hahn and Anne Layne-Farrar, 2004.…

    • 10785 Words
    • 44 Pages
    Powerful Essays
  • Good Essays

    Economic paper

    • 617 Words
    • 3 Pages

    Paper money has been declining for quite a while since technology has kicked in and nobody ever mentions the positives and the benefits of a cashless world. Blood money, illegal trade, and selling of drugs would be limited due to no papers to be dealing with which would make crime rates drop massively. There would be a lot of people…

    • 617 Words
    • 3 Pages
    Good Essays
  • Better Essays

    ppt on make my trip

    • 1219 Words
    • 4 Pages

    What does a completely cashless economy look like? There are some really big opportunities here for innovation, from convenient micro-payments, to transportation ticketing, payments to street stall vendors, and pocket-money for the kids.…

    • 1219 Words
    • 4 Pages
    Better Essays
  • Powerful Essays

    Cash has long been the major method people used to pay. However, recent trend showed that cash is being replaced by other paying methods. Miguel Helft, the author of the article “The Death of Cash” in Fortune July 23, 2012 edition, described this trend by introducing Jack Dorsey, the Twitter co-founder, who is setting up a new cashless payment business with his company, Square. First, the author described the cashless future, derived from the technology developed by Square, while also explaining about the enormous business size of the future cashless payments. Then he illustrated some problems and obstacles in pursuing this future. Lastly, he stated the potential of cashless future, by mentioning the demands of the people in America for the use of new cashless payment technology.…

    • 829 Words
    • 4 Pages
    Powerful Essays
  • Powerful Essays

    The review-period growth was a result of the Nigerian government’s efforts to move its cash-based economy towards non-cash payments. Projects such as Cash-Less Lagos have been launched to promote electronic payments and curb issues such as tax evasion and money…

    • 931 Words
    • 4 Pages
    Powerful Essays
  • Powerful Essays

    Established by the Central Bank of Nigeria (CBN) Act of 1958, the Principal objects of the Bank as contained in the new CBN Act, 2007 are to · · · · · ensure monetary and price stability issue legal tender currency in Nigeria maintain external reserves to safeguard the international value of the legal tender currency promote a sound financial system in Nigeria act as banker and provide economic and financial advice to the Federal Government of Nigeria…

    • 57775 Words
    • 232 Pages
    Powerful Essays
  • Powerful Essays

    Distress in commercial bank in Nigeria has called for a serious controversial debate, as to…

    • 1155 Words
    • 5 Pages
    Powerful Essays
  • Powerful Essays

    “Appraisal of the Nigeria Financial System”, CBN Bullion. Vol. 13, No. 2, April – June.…

    • 10170 Words
    • 41 Pages
    Powerful Essays
  • Better Essays

    • Akpan P.E (2oo6) ‘Developments in the Nigerian Banking System’, Department of Banking Supervision, Central Bank of Nigeria.…

    • 1199 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    The Nigerian banking system has undergone remarkable changes over the years, in terms of the number of institutions, ownership structure, as well as depth and breadth of operations. These changes have been influenced largely by challenges posed by deregulation of the financial sector, globalization of operations, technological innovations and adoption of supervisory and prudential requirements that conform to international standards (Elumelu, 2005)…

    • 13431 Words
    • 54 Pages
    Powerful Essays

Related Topics