Johnson Chukwu, Managing Director, Cowry Asset Management Ltd

It is inappropriate for the government to charge levy on all electronic transactions and at the same time collect charges on cash deposits and withdrawals that are in excess of N500,000, said Johnson Chukwu, Managing Director, Cowry Asset Management.
In an exclusive interview with Business Hallmark, he stated that the cashless policy, which is designed to reduce the volume of cash in circulation, is plausible; but it would be counterproductive to charge levy on all electronic transactions simultaneously.
“For now, they have to suspend the charges on online transactions, because this is where want people to migrate to. If we really want people to migrate from cash, which is the ideal thing, we need to suspend charges on payment on electronic platforms,” he asserted.
The government in 2018 disclosed that it was going to charge 0.005 per cent levy charged on all electronic transactions to fund the establishment of the National Cyber Security Fund.
The Central Bank recently directed all commercial banks in the country to charge 2 per cent on withdrawal or deposit above N500,000, to discourage cash transactions.
The new charges attracted a lot of reactions, which propelled the CBN to further explain that it is only the excess on N500,000 that the 2 per cent levy would be charged.
“The Cash-less Policy deposit/withdrawal charge is only on the amount in excess of the limit. For instance, if you deposit cash of N501,000.00, N1,000.00 is in excess of the limit. The bank will charge you 2% of N1,000.00 which is N20.00,” Isaac Okorafor, Director, Corporate Communications Department, CBN, clarified.