By By Promise Eze
The Central Bank of Nigeria (CBN), on Tuesday, imposed limits on weekly cash withdrawals by individuals and corporate entities.
The new policy which will take effect on January 9, 2023, is aimed at reducing the amount of cash circulating in the economy and encouraging more electronic-based transactions.
However, Nigerian legislators seemed not to be pleased with this move as the House of Representatives on Thursday, asked the Central Bank of Nigeria to suspend its latest policy.
Despite the mixed reactions the policy has generated, below are four ways it could benefit Nigeria’s telecom companies:
1. Increased data usage and revenue
The CBN’s cash withdrawal limit would definitely force people to use digital payment channels for transactions, which could lead to increased data usage and revenue for telecom companies in Nigeria.
2. More revenue from payment commissions
Nigerian telecom companies could benefit from increased digital payments by collecting fees and commissions from the usage of USSD.
3. More opportunities for mobile money
According to media research company, Dataphyte, about ₦26.17 trillion circulated in the Nigerian economy in 2021 that the country’s banking system didn’t account for.
Considering that the banking sector has been plagued with issues such as unexplained charges and poor customer support, this is the perfect time for telcos to swoop in and acquire customers from the unbanked market and even entice the already banked to join their ranks.
4. Potential for new products and services
The cash withdrawal limits and its side effects could give room for Nigeria’s telcos to introduce new and exciting digital product offerings, like an eCommerce platform to sell goods and services or partner with existing retailers.
