Nigeria has officially banned large-scale cash withdrawals from banks as of Monday, January 9th, in a bid to curb inflation.
The regulation, which is most likely to affect millions of Nigerians, notably businessmen and high cash-intensive enterprises, will only allow individuals and businesses to withdraw $44 per week per person and $11,000 per week per firm.
The government’s declared objective is to reduce the quantity of banknotes in circulation in order to reduce corruption and illicit financial flows, as well as to modernize the payment system using tools like mobile money, e-naira, and other digital currencies designed for companies.
Finally, the objective is to better control inflation. However, as economists point out, the mass of banknotes in circulation represents only 6% of the total money supply.
Inflation would be better, they point out, if the state repaid the Central Bank its huge debt which, according to the Nigerian press, would amount to $48 million.
