Cashless policy not meant to abolish cash transactions –Moghalu

The former Deputy Governor of the Central Bank of Nigeria (CBN, Kingsley Moghalu, has stated that the cashless policy wasn’t initiated to criminalise cash transactions.

Moghalu said the cashless policy was created during his time when he was part of the Committee of Governors at the central bank.

He explained in a post on Twitter on Thursday that the cashless policy was not to abolish cash transactions but to provide more options for Nigerians during transactions.

Recall that the central bank has been promoting the cashless policy since late 2022, which made the financial regulator to phase out the old N200, N500 and N1,000 notes before the Supreme Court judgement said the old currencies remain legal till the end of 2023.

READ ALSO: Naira scarcity to persist as CBN mops up currency in circulation

Addressing the impact of the decision of the CBN imposing the cashless policy on Nigerians, Moghalu said: “When we as the Committee of Governors @cenbank introduced the “cash-less” policy a decade ago, the purpose was to encourage digital and electronic payments for increased efficiency, but NOT to criminalize cash or abolish cash transactions for those who CHOOSE to use that method.

“I strongly disagree with any public policy direction that seeks to render Nigeria a completely “cashless” society. Even in the more advanced industrial countries, cash is still very much used. Why do we think we can leapfrog into being holier than the pope when we don’t have the essential broadband and other infrastructure, and when we have a rural and urban low income economy that is mostly cash based

“The result is the human suffering /economic paralysis we are witnessing in Nigeria today. We should beware of “fads” out of touch with our environment,” Moghalu said.