• The Nigerian government will be implementing a ban on cash withdrawals from government accounts, set to take effect from March 1.
• The move is in line with the government’s need to tackle illicit activities and cut off the financial support of terrorist extremists, Boko Haram.
• Bitcoin and Cardano have been offering hope to those locked out of the banking industry due to the successful deployment of the digital Naira.
The Nigerian government is set to take a drastic step in their mission to tackle illicit activities and cut off the financial support of terrorist extremists, Boko Haram. On March 1, the country will be implementing a ban on cash withdrawals from government accounts.
The move was announced by Nigerian Financial Intelligence Unit Chief Executive Modibbo Tukur. He stated that any cash withdrawals from government accounts, regardless of amount, will be subject to money laundering and corruption investigations. This comes on the heels of the Central Bank of Nigeria limiting weekly over-the-counter cash withdrawals to 100,000 nairas ($225) for individuals and 500,000 nairas ($1,124) for corporations, as well as limiting ATM withdrawals to $45 per day.
In addition to the restrictions imposed on cash withdrawals, the president and the central bank are also able to authorize exceptions for exceptional cases.
However, not all is gloomy for Nigerians. The successful deployment of the digital Naira has opened up the possibility for those locked out of the banking industry to access financial services. Bitcoin and Cardano have been offering hope to those locked out of the banking industry, with the potential of becoming the preferred currencies in the country.
The Nigerian government’s move to ban cash withdrawals from government accounts is a bold and ambitious step that could potentially have a long-lasting impact on the country’s economy. The hope is that it will help the country tackle illicit activities and ultimately improve the livelihoods of its citizens.
