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Nigeria bets on the central bank's digital currency

Nigeria takes a new step toward a cashless society.

By Finst News
• 2 min read
Nigeria bets on the central bank's digital currency

Nigeria takes a new step toward a cashless society. Withdrawals from government accounts will stop starting in March.

Starting March next year, withdrawals of cash from government accounts in Nigeria will be banned, Bloomberg reports. "On March 1, we will begin investigations into money laundering and corruption with every government account withdrawal, even if it's just a naira," said Modibbo Tukur, head of Nigeria's financial intelligence agency.

Aimed at rationalizing the financial system

Nigeria's police justify the move in an effort to shield the financial system and public officials from ongoing abuse. In 2012, Nigeria launched the policy framework under the agenda "Nigeria Cashless." Since then, cash transactions have been progressively restricted. As part of the agenda, the country developed its own digital central bank currency, the eNaira. As a result, Nigeria is one of the 114 countries using the CBDC, though it has not been well received.

To boost adoption of the eNaira among the population, withdrawals from private accounts will also be limited. From January 9, withdrawals will be limited to 45 US dollars per day.

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