Why CBN must collaborate with telecos on cash withdrawal limit, University Don

Theresa Agbonma Udenwa 1

A professor of Banking and Finance, with the Nasarawa State University, Keffi, Theresa Agbonma Udenwa said unless the Central Bank of Nigeria (CBN) collaborate with Telecommunication and Network Operators in the country, its current monetary policy being implemented on cash withdrawal limit will be unrealistic.

Speaking at the 29th Inaugural Lecture of the institution on Wednesday, the University Don noted that, an individual can beat the CBN’s cash withdrawal limit by withdrawing more cash, using E-Naira wallet.

Udenwa who spoke on the Topic “Achieving Financial Inclusion in Nigeria: What role for the E-Naira?” called on the CBN to rise up to the challenge to deepen awareness on the use of E-Naira in order to improve financial inclusion among Nigerians.

According to the Banking and Finance expert, the E- Naira which is a digital form of the Naira issued by the Central Bank of Nigeria eliminates the need for physical storage and is a veritable tool for financial inclusion and penetration.

She said, “with the current implementation of CBN’s monetary policy on cash limit withdrawals, Individuals who have an E-Wallet can beat the withdrawal limit set by the apex bank by withdrawing cash from the physical account and E-Naira wallet simultaneously.

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Udenwa advised that, for the CBN to achieve its aim of Financial Inclusion, it should collaborate with Telecom and Network operators to ensure wider internet coverage, especially in rural areas.

She stated that, given that there is some skepticism and concern around digital currencies, the CBN has to design the E-Naira wallet in a way that makes it easy for people to use.

She further advised the CBN to increase basic awareness of the E-Naira and financial literacy to improve it operation, adding that, the CBN should regularly monitor and measure the level of acceptance of the E-Naira to address any challenge that may arise.

Suleiman Bala-Mohammed, the Vice Chancellor of the varsity, who was represented by the Deputy Vice-Chancellor Academics, Haruna Kuje Ayuba, expressed concern about the challenges of financial inclusion which he said, is the measure of a population’s access to affordable financial services.

Bala-Mohammed then identified some of the challenges to financial inclusion to include legal identification, low levels of financial literacy, limited coverage of service points, and high service fees.

He prayed that, the inaugural lecture will serve as a wake-up call to propel the financial regulatory body to find sustainable solutions to the issue of financial inclusion in Nigeria.