Currency Outside Nigerian Bank Vaults Drops By N255.9bn YTD In February

The latest data from the Central Bank of Nigeria (CBN) says cash outside the vaults of bank in the country fell by7 N62.717bn at the end of February, representing a drop of about 2.78%.
According to the figures on the apex bank’s website, currency in circulation around the country, stood at N21.85tr, compared to NB2.248tr at the end of January, which means that between December 31, 2019, and February (year-to-date), the level has dropped by N255.933bn or 10.48%. At the end of December, the CBN reported that currency outside of banks dropped from N2.441tr.
The decline in February is coming ahead of the nationwide commencement of the cashless policy initiative on March 31, 2020.
Recall that the policy had earlier taken off in the pilot states of Lagos, Ogun, Kano, Abia, Anambra, and Rivers States, as well as the Federal Capital Territory (FCT), Abuja, all of which host major commercial centres.
The policy is part of efforts to migrate more people onto electronic payment platforms and is expected to drastically reduce the cost of currency management in the country, with withdrawals of over N500,000 for individual accounts attracting 3% processing fees; and 2% for lodgments of similar amounts with effect from.
According to a circular to all deposit money bank (DMBs), which also announced the commencement of the charges on deposits in addition to already existing charges on withdrawals, corporate accounts will, however, attract 5% processing fees for withdrawals and 3% for lodgments of amounts above N3,000,000 from that date.