The Manufacturers Association of Nigeria (MAN) has alerted that the implementation of the cashless policy may have negative effects on the Micro, Small and Medium Enterprises (MSMEs).
The Central Bank of Nigeria (CBN), had in a circular to Deposit Money Banks said it would from September 18, 2019, begin to impose three per cent processing fees for withdrawal and two per cent processing fees for lodgement of amounts above N500,000 for individual accounts.
But MAN in a statement on Monday by its Director-General, Segun Ajayi-Kadir, said the policy may negatively affect MSMEs, which according to him are the engine room of the economy, especially in terms of employment generation.
He added that the CBN did not make any consultations and sensitisation of the relevant stakeholders before reintroducing the policy.
According to the MAN DG, Nigerian government should have put in place vital infrastructure that would support and drive the policy before announcing it.
“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,” he said.
He said that it appeared the CBN decided to penalise non-compliance.
Ajayi-Kadir added that the CBN, rather than introduced gains for those who embraced cashless transactions 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,” he added.