The new directive on cash withdrawal by the Central Bank of Nigeria (CBN) on Tuesday is generating heated comments and reactions from Nigerians, especially point of sale (PoS) terminal operators who largely depend on cash to run their business.
FIJ interviewed some operators at Agric and Isawo bus-stops in Ikorodu on Wednesday and they spoke on how the policy would impact their means of livelihood.
A tricycle operator who identified as Kamoli Abayomi explained that the policy would not sit down well with the unbanked and uneducated population, citing an instance of a tricycle dealer in Agric, who doesn’t operate a bank account because he lacks confidence in the banks.
“I heard about the regulations yesterday in a news report. I am concerned about uneducated people and those who do not patronise banks,” Abayomi told FIJ.
“A couple of weeks ago, one old man selling tricycle here (Agric) sold a tricycle for ₦650,000 and he had to acquire the bank information of one of his fellow tenants at their complex to receive the payment.
- Nigerian military secretly, illegally aborts over 10,000 pregnancies of girls, women raped by Boko Haram terrorists
- Auditor General report: 100 govt establishments risk zero allocation
- EFCC to conclude auction of 435 forfeited vehicles in Lagos Thursday
“Ordinarily, he prefers customers to pay in cash. If the money is huge, he would quickly take it home for safe-keeping. For people like this, how would they fare under this new banking rules?”
Tobi Martins has a PoS stand at the entrance of RSA Street, close to Isawo. He told FIJ the policy would not favour his business.
“I read the news yesterday on social media and became affected. I thought of how this would reduce my business patronage and even inconvenient some customers who come here to withdraw large sums,” he said.
“However, I think they have their reasons and we too will find a way to accommodate the new reality.”
IT COULD KILL OUR BUSINESS
Agbaje Mary, an indigene of Osun State, said she was not aware of the development.
“I didn’t know anything about this policy until you told me. It is not going to affect my business positively. I’m an admission seeker and I started this business to make myself productive while hoping to go get an admission,” she explained.
“What this means to me is that I may end up closing this business by the time my customer base diminishes as a result of this policy. I remember I started with ₦10,000 a year ago and the capital has multiplied now. In a day, I could trade with ₦200,000 and even more.
“But now, if I cannot withdraw more than ₦50,000 for my business over the counter in a day, the implication is that my business could die gradually.”
When this reporter approached Ajibola Janet for comments, she said she was not aware of such regulations. After reading out the letter to her, she also expressed her worry over the development, saying “it will definitely tell on our business”.
“Such policy is unfair. Our business is cash-dependent and limiting how much people withdraw daily and how much we also can withdraw to use for business, will bring severe impacts on our operations,” he said.
“At any rate, this is not my only line of business. I will rather concentrate my attention on other lines for my survival and follow the trend.”
As this reporter approached Adebisi Adejumoh and Mosun Akanji, what came to their minds was that he wanted to withdraw money. Upon initiating a conversation with them, they realised his purpose was entirely different.
- Court throws out suit challenging Tinubu’s candidacy
- Police launch manhunt for woman who burnt parents
- Senate cautions CBN over cash withdrawal limit
Adejumoh said, “This policy is too harsh. People withdraw various amounts from me daily. Sometimes, some people come here to withdraw ₦100,000 at once.”
“The higher the amount an individual withdraws at a go, the higher my own charges. So, if it now becomes impossible for one person to withdraw above ₦20,000 in a day, I am confused, as we would be making adequate profits and receive my pay at the end of the month from my employer.”
On her own part, Akanji dismissed the policy as untrue. She said it was doubtful the apex bank would release such regulations when POS business had kept many productive.
“I don’t want to believe what you are saying is true. Why will they (CBN) pronounce a policy like that? It does not have human face. Looking at the number of people in this business, there may be a problem if the policy becomes effective and people can no longer make ends meet,” Akanji explained to FIJ.
At another shop on a one-storey building situated at Isawo junction, a man who identified as Emmanuel Houston, told FIJ that the policy would affect everybody to different extents.
According to Houston, POS machines have created jobs for thousands of Nigerians and ensured relative peace in some communities.
“In Isawo alone,” Houston said, “unless there is an official register of POS terminals here, you might not be able to count the number of people doing the business.
“Some people don’t take it as their full line of business while some do not have any other business. I believe the regulations have the potential to bite everybody regardless.”
With the new CBN regulations, ATMs will only dispense ₦200 notes and below.
The revised cash withdrawal limits contained in a letter with reference number BSD/DIR/PUB/LAB/015/069 becomes effective on January 9, 2023.
$1bn investment recorded in auto industry – Minister
The Federal Government has recorded more than one billion dollars’ worth of investments in the automotive industry. Minister of Industry, Trade and Investment, Otunba Adeniyi Adebayo, said this in Abuja on Tuesday when he featured at the 20th edition of President Muhammadu Buhari’s administration scorecard series organsied by the Federal Ministry of Information and Culture.
“Over one billion dollars in investment has been recorded in the automotive sector and we are ready to move on to the next phase for the automotive industry,” the minister said.
He said the review of the National Automotive Industry Development Plan (NAIDP) was almost completed, adding that the plan was going through validation process.
Adebayo restated the ministry’s commitment toward enabling business environment to attract and retain investments.
According to him, the ministry and the Nigerian Investment Promotion Council (NIPC) are committed to attracting and protecting investments that genuinely benefit Nigeria and its citizens.
He said that the revised Bilateral Investment Treaty (BIT) would boost investment.
“Nigeria has successfully revised its model Bilateral Investment Treaty (BIT) to include a specific provision for investment facilitation, which institutionalizes the principle of assisting investors in completing their investments.
“We are proud to offer Nigeria’s first investment policy to the Federal Executive Council (FEC) for approval.
“This strategic statement, which will outline our priorities, aims, commitments, and expectations, is a turning point for the Federal Ministry of Industry, Trade, and Investment and Nigeria as an investment destination,” he said.
Adebayo, who said that Nigeria had Investment Promotion and Protection Agreements (IPPAs) with Singapore, Morocco, and Saudi Arabia to attract and retain investments, said the ministry was developing more.
“We have IPPAs with Singapore, Morocco, and Saudi Arabia to attract and retain investments. The president ratified both accords on Sept. 16, 2022 and we are developing more IPPAs,” he said.
Adebayo said the ministry also distributed 5,571 acceptance certificates worth N7.7 trillion to 2,665,800 firms.
“The acceptance certificates allow businesses claim tax reduction when computing Company Income Tax.
“We also issued more than 130 Production Day Certificates, a crucial Pioneer Status Incentive step,’’ the minister said.
To further accelerate industrialisation, Adebayo said that the ministry was expediting the establishment of Special Economic Zones (SEZs) across the country.
According to him, the special economic zones will increase infrastructure availability and provide fiscal incentives for value addition.
Pay customers with N100, N50, CBN orders commercial banks
The Central Bank Of Nigeria has directed all commercial banks to pay customers over the counter in N100, N50, N20, N10, and N5 notes, regardless of the amount withdrawn.
Bankers Committee issued the directives to all commercial banks in the country on Monday, and announced the discontinuation of old notes payment of N1000, N500 and N200 across the counters.
It also urged people to use their alternative channels for transactions, while those insisting on new naira notes were advised to use Automated Teller Machine (ATMs).
The directives came on Monday, following a meeting of the bankers committee in Lagos.
The CBN Governor, Godwin Emefiele, in a statement on Sunday extended the deadline for old naira notes from January 31 to February 10, 2023.
Emefiele also noted that he obtained permission from President Muhmammadu Buhari to effect the extension.
According to him, the extension, ‘a seven-day grace period’ was as a result of measures put in place to ease the scarcity.
The decision is coming after CBN had previously insisted that it would not extend the deadline.
Famous 4×4 Grenadier coming to Nigeria, courtesy Coscharis Motors
Coscharis Motors has announced its readiness to introduce the popular rugged off-road vehicle, Grenadier, to the Nigerian auto market.
This follows the naming of the auto company by INEOS Automotive as its official retail partner in Nigeria.
Nigeria is the sixth market in Sub-Sahara Africa to join the brand after South Africa, Kenya, Tanzania, Namibia and Botswana.
A statement on Monday by Abiona Babarinde, the auto firm’s General Manager, Marketing and Corporate Communications, said, “The first Grenadier demonstrator vehicles are expected to arrive in Nigeria in early 2023 with customer deliveries expected to commence within the first quarter.
“All after-sales servicing will be conducted at a dedicated workshop also located in Lagos.”
Commenting on this partnership, the President/CEO of Coscharis Group, Dr Cosmas Maduka, said, “We are proud that INEOS Automotive has appointed Coscharis Motors to represent its brand in Nigeria. “This milestone marks another step in the evolution of our company. With our history and experience of the Nigerian market, we know that the INEOS Grenadier is going to be a serious player in the off-road segment.
“We have no doubt that the Grenadier has what it takes to handle Africa’s tough terrain and that it is the perfect option to meet the specific demands of those who need a capable, refined, and reliable off-road vehicle in the region. We look forward to the first customer test drives and hearing public feedback, because this vehicle is definitely going to stir things up in Nigeria.”
The statement quoted Tim Abbott, INEOS Automotive’s Head of Region South Africa and Sub-Sahara Africa, as saying, “We are carefully selecting our partners across the SSA region, to find people who know their local market and customers, and also understand our brand.
“Coscharis Motors shares our belief that the INEOS Grenadier is the perfect vehicle not only for Nigeria, but for the continent. Our shared passion for off-roading, along with their excellent reputation in the automotive industry, makes it the perfect partnership for Grenadier in Nigeria.”
Coscharis says the Grenadier has been developed to be refined on the road and extraordinarily capable off-road.
“The Grenadier is powered by a choice of two straight-six, 3.0-litre BMW engines. Both the BMW B57 diesel and B58 petrol powertrains have a proven track record, regularly appearing in top ten world’s best engine lists since 2016. They have been used in everything from sports cars to SUVs.
“The two power units bring BMW’s sophistication and refinement to the Grenadier, but they have been enhanced by INEOS Automotive’s engineering team. As well as providing powerful acceleration on tarmac, they also deliver peak torque at low revs – sustaining it through the rev range – for optimal off-road performance,” it states.
It also notes that the carefully calibrated characteristics help the driver to confidently manage the vehicle’s momentum and grip without stressing the engine, ensuring full control when tackling tricky terrain.
It adds, “The refined turbo petrol engine produces 286PS (210kW) and 450Nm (332 lb ft) of torque, while the twin-turbo diesel generates 249PS (183kW) and 550Nm (406 lb ft), for even greater pulling power. Start/stop is built-in, increasing range and preserving air quality when the vehicle is stationary.
“While it is every inch a rugged 4X4, it ticks all the right boxes on the road, too. The chassis combines a five-link suspension setup with Brembo brakes and Bridgestone tyres, meaning the Grenadier is composed, well- mannered and fun to drive no matter what the terrain.”
The firm also reveals that by the end of this year, INEOS Automotive plans to have a network of more than 200 sales and service sites for the Grenadier spanning over 50 countries, including established dealer groups, 4X4 specialists and agricultural equipment dealers.
$1bn investment recorded in auto industry – Minister
Nigeria ranks 150 out of 180 countries in 2022 Transparency International Corruption Index
Face-off between Niger Gov, Senator disrupts pro-Tinubu rally in Borgu
CCECC completes Apapa port link to Lagos-Ibadan railway
Customs: Vehicle tariff reduction to begin next week
Biden, Treasury Secretary say Republicans COVID-19 aid too small
Osun state gov, Ademola Adeleke, thrills guests as he dances to Buga amid removal saga (Video)
Cristiano Ronaldo’s partner Georgina Rodriguez buys him a Rolls Royce for Christmas (video)
Drama as angry bride refuses to marry groom during church wedding [Video]
metro2 days ago
Updated: Eight confirmed dead as container falls on passenger bus in Lagos + photos
International3 days ago
Russian/Ukraine war: Vladimir Putin sends 100 strippers to front line to boost morale of Russian soldiers
Opinion7 days ago
IGP tenure: Police affairs minister goofed, says rights group
metro6 days ago
Unknown Gunmen kill APC Chairman in Imo, Kidnap 5 Chieftains
metro4 days ago
Updated: Kaduna-Abuja train derails close to Kubwa station
metro4 days ago
Woman bites off another’s breast in bloody fuel queue fight in Delta
Politics7 days ago
APC expels Buhari’s ex-aide, Ita Enang, over anti-party activities
Auto4 days ago
Lanre Shittu assembles new pickup, plans vehicles to carry its nameplate