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CBN’s New Deposit/Withdrawal Policy: Who Pays the Penalty, Client or Agency

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CBN’s New Deposit/Withdrawal Policy: Who Pays the Penalty, Client or Agency

By Anthony Elikene

The Central Bank of Nigeria (CBN) recently introduced a policy it has been tinkering with since 2011 which is embedded in its Cashless Policy scheduled to take effect nationwide from March 31, 2020. This new Deposit and Withdrawal Policy will see depositors of cash being penalized when they exceed 500,000 thousand Naira.

The CBN circular reads, ref BPS/DIR/GEN/CIR/04/004 “We write to inform all Deposit Money Banks (DBM) that the CBN has approved that Charges on deposits shall apply in Lagos, Ogun, Kano, Abia, Anambra, Rivers states and the FCT, in addition to already existing charges on withdrawals, effective from September 18, 2019.”

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The circular further explained that corporate accounts will be charged, a processing fee of 5 percent for withdrawals, and 3 percent for deposits of amounts above 3 million Naira.

Still on a corporate account, for instance, you make a deposit of 6 million Naira cash in your account, the first 3 million Naira will be free but the remaining 3 million will be subject to a 3 percent charge.

But how does this new policy affect the business community especially the consulting industry such as marketing communications where cash still plays a vital role. Public Relations practitioner, and Senior Consultant Public Relations, Dijo Communications, Anthony Elikene, a member of the Nigerian Institute of Public Relations, asks a vital question.

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According to Elikene “let’s assume I bill my client 6 million Naira after much bargaining for an event activation that will need paying several suppliers cash and make purchases of items crucial for the event. Let’s also say the consultancy withdraws the full amount paid by the client which has already been underpriced to the limit by my client, now the CBN is also going to deduct 150,000 from 3 million of the same money.”

“My dilemma here is a moral one. Is the consultancy going to survive to do business if it bears all the penalty alone or is the client expected to bear this penalty or share a part of it? Because this policy will hit consultants from every angle. Will the client be magnanimous to pay this especially after the proposed increase in VAT and introduction of the Police Fund Levy?” He concludes.

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Even individuals are not spared as deposits of N1m cash in your own account, the first N500k will be free but the remaining will be subject to a 2 percent charge. Meaning you’ll be charged N10,000.

The CBN is commencing pilot operations in seven states namely Lagos, Ogun, Kano, Abia, Anambra, Rivers states and the Federal Capital Territory, Abuja.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via dipo.olowookere@businesspost.ng

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Mouka Unveils Affordable Eco-Comfy Fibre Mattress

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Eco-Comfy fibre mattress

By Ashemiriogwa Emmanuel

Mouka Limited, manufacturers of household and industrial foam products in Nigeria, has demonstrated its commitment to promoting a sustainable environment with the launching of its new eco-friendly mattress called Eco-Comfy.

According to Mouka’s Head of Marketing, Mr Tolu Olanipekun, the Eco-Comfy fibre mattress is made of  100 per cent recyclable polyester fibre which allows for the conversion of old mattresses into other valuable items to cut down on environmental pollution.

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Commenting at the launch of the product, he said, “Eco-Comfy is eco-friendly as it is made of 100 per cent recyclable polyester fibre, which means an old mattress can be converted into other valuable products rather than ending up in a landfill, thereby causing pollution of the environment.”

In addition, the company’s Chief Executive Officer, Mr Raymond Murphy, pointed out that Mouka was continuously looking for ways to contribute to a safer environment by cutting down waste in its operations which has resulted in numerous awards to date.

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Meanwhile, the Chief Commercial Officer (CCO) of the company, Mr Dimeji Osingunwa, encouraged institutions such as schools and camps that desire a low-cost yet durable mattress to purchase the new Mouka Eco-Comfy.

The Mouka CCO added that the new mattress was targeted at consumers who want to enjoy quality sleep at a very pocket-friendly price in Nigeria.

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Mouka Limited manufactures mattresses, pillows, and other bedding products. The company has production facilities in Lagos, Benin, and Kaduna, which offers polyurethane-based products in the household and industrial foam market in Nigeria and the African sub-region.

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Visa Offers Cashback to Nigerians in New Promo

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Visa Cardholders

By Sodeinde Temidayo David

Visa, the world’s second-largest card payment organisation, is set to launch a new promo called How you pay matters which guarantees its users cashback.

The campaign is set to offer a whole new extra value for cashback and is only entitled to VISA cardholders in Nigeria, a notice from the firm disclosed.

With the new service, every time a customer in Nigeria makes a payment with the Visa card online or via Point of Sale (POS), he/she is guaranteed 10 per cent cashback.

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Through this initiative, whenever a customer spends a minimum of N60,000 or $150 on three or more transactions monthly online or via POS, a reward would be given.

The cashback reward will be paid directly into the account to which the Visa card is linked, while cardholders are advised not to take any action in this regard.

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The company noted that this new offering, which is based on a first-come-first-served basis, can be integrated into a merchant’s website to boost activities/operations of customers on the web platform and to deliver meaningful consumer content that’s optimised for organic search.

Visa has also assured customers of the security and safety of using their debit and credit services.

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This promo is coming after the launch of the Where You Shop Matters initiative which supports small businesses during the height of the coronavirus pandemic.

Visa is a global payments technology company that connects consumers, businesses, financial institutions and governments in more than 200 countries. In Nigeria, Visa is a name that most people will have.

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Ikeja Electric Upgrades Mobile App for Better Service

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IE mobile app

By Ashemiriogwa Emmanuel

Ikeja Electric Distribution Company has touched up its IE mobile app with advanced features to improve customers’ experience and deliver better service.

The upgrade on the multi-purpose app was unveiled by the Chief Executive Officer (CEO) at the DisCo, Mrs Folake Soetan.

According to her, the new features on the IE app will allow for a seamless user experience such as making inquiries, checking and paying bills, reporting/resolving complaints and also contacting customer care representatives without visiting any of its offices.

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“The upgraded IE mobile app comes with numerous functionalities that offer secured transactions, prompt services, and unique user-experience. It is a mobile app positioned as a one-stop-shop for customers to interact with Ikeja Electric for prompt responses,” Mrs Soetan said.

She also added that the latest version of the app epitomizes the company’s innovative approach in bringing development to the power sector and is part of Ikeja Electric’s goal in using technology to deliver a quality customer experience.

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“The latest IE mobile app is a demonstration that the company is forward-thinking, innovative and customer-centric. We are a vibrant brand. We are bold and excited to always aim for greatness in order to bring development to the power sector.

“We dare to consistently improve our services in order to improve customer experience and achieve better results,” she said.

According to the Ikeja Electric CEO, the latest version of the mobile app is currently available for download on the Google play store for Android users, and iOS Store for iPhone users.

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Business Post reports that new customers within the Ikeja Electric network can set up their accounts using their IE Account Number. This will allow them to verify their phone number, set and confirm passwords. It was also gathered that even unregistered users can still use the app to check information and resolve complaints.

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