Of Special Interest

6th January 2012

Nigeria limits cash usage to boost Mpayments

The Nigerian Central Bank is limiting the amount of cash withdrawals in order to encourage payment by other means. There has been some confusion over the rulings with the central bank recently having to clarify that it is not attempting to end all cash payments - simply trying to reduce the dependence on cash. Customers are limited to a maximum daily withdrawal of N150,000 (€726.2 £603.6 $940.3 ¥72,210 Y5,921). Due to the confusion caused by initial announcement fining those that exceed the daily limit is postponed and will now start in March of this year. The bank believes that developing other payment methods is crucial to its goal of making Nigeria a top 20 economy by 2020.

Going on test in Lagos state is the new mobile payments system. Organisations have to apply for separate mobile money licences and so far the central bank has had 11 applicants. First Bank, First City Monument Bank, Garanty Trust Bank, Oceanic Bank, United Bank of Africa, Unity Bank and Zenith Bank are reported to have ordered 14,000 of the required POS machines between them. Ingenico has been appointed as the sole supplier of the terminal and believe that within four years there will be hundreds of thousands of terminals in use throughout Nigeria.