Ask Nigeria Header Logo

Cash withdrawal limit to curb fraud – CBN

Photo of author

By Akintola Timothy

Systems are being put in place to checkmate this banking discrepancy.

The prevalence of fraudulent activities that have ravaged the social and economic status quo of the Nigerian society have given the country a bad representation globally. With recurring reports of Nigerians being arrested for fraud cases, countries continue to stereotype most Nigerians as a result of the rampant corruption and fraudulent practices. In fact, 1.7 thousand males and 337 females were apprehended in Nigeria for fraud cases in 2019. The Nigerian Inter-Bank Settlement System PLC however noted that the statistics of fraud have increased by 186 percent from 2019.

About a week ago, the Central Bank of Nigeria proposed a policy that would see to a limit in the withdrawal of cash via the Automated Teller Machine (ATM). Though this policy was met with immense criticisms, the Central Bank of Nigeria have indicated that the new cash withdrawal limit policy was designed to help in salvaging the rampant electronic fraud that has clouded over Nigeria. Mr. Musa Jimoh, the Apex bank’s Director of Payments System Management Department whilst dispensing this assurance, noted that with the tractions that the electronic payment gained, there was an evident 35 percent decline in fraudulent transactions in 2022.

NeFF and CBN ring-fencing finance system and payment infrastructure.

Mr. Musa Jimoh, whilst speaking at the Nigeria Electronic Fraud Forum meeting, stated that this new policy would help to deter criminals from defrauding innocent individuals due to the limit in withdrawal which has been shaped to automatically block and trace compromised accounts before the money is withdrawn illegally. He further noted that per envisaging and commencing the limits of cash withdrawals will help immensely in taming fraud. He pointed that with this policy, restrictions would be placed on accounts suspected to be linked with fraud and immediately traced.

On the immense strides enacted by the CBN and NeFF to curb electronic fraud, Mr. Jimoh stated that efforts had been undertaken to ring-fence the finance structure and payment infrastructure against fraudulent activities. He pointed out that the efforts enacted had led to the reduction of these fraudulent activities by a whooping 35 percent, as well as the recovery of substantial amounts of money through initiatives put in place to salvage the prevalent cases of fraud.

Oiwoh urged the CBN to make recovery process easy.

He admitted that though the attempt were still on a high, systems were being put in place to checkmate this discrepancy. Speaking at the event, Mr. Premier Oiwoh, the Managing Director of the Nigeria Inter-Bank Settlement System PLC (NIBSS) also noted that banks must also invest in technological advancements to further eliminate this perpetration. He reiterated that the use of Artificial Intelligence (AI) would be of immense help in eliminating this fraud.

Premier critically expressed that one major problem in Nigeria’s banking industry was their reluctance to report fraud cases and thus, urged the bank to set up a fraud desk and urged the Central Bank to make easy, the recovery process. With these improvements, the bank will have a upper hand in salvaging the recurring cases of electronic fraud. He stated that the bank, with immense support from the CBN can design policies that will enhance the protection of people’s savings from e-fraud.

Institutions must invest in fraud monitoring tools.

Mr. Oiwoh said that the institutions must also invest in the fraud monitoring tool, Enterprise Fraud Management (EFM) to effectively herald the combating of electronic fraud. He noted that every system was as efficient as the people who set it and as such, the EFM should help intercept, analyze, interprets and take immediate actions. He also said that besides the use of Artificial Intelligence technology, the CBN must also look into the cumbersome recovery process, whilst making efforts that allows for an easy access for reportage of fraud cases.


Related Link

CBN: Website

The content on AskNigeria.com is given for general information only and does not constitute a professional opinion, and users should seek their own legal/professional advice. There is data available online that lists details, facts and further information not listed in this post, please complete your own investigation into these matters and reach your own conclusion. AskNigeria.com accepts no responsibility for losses from any person acting or refraining from acting as a result of content contained in this website and/or other websites which may be linked to this website.

Fact Checking Tool – Snopes.com

0 0 votes
Rate This Article
20 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
Admin
9 months ago

Cash withdrawal limit to curb fraud – CBN – Systems are being put in place to checkmate this banking discrepancy. – Express your point of view.

SarahDiv
SarahDiv
Member
9 months ago

What CBN is proposing on cash withdrawal limit is a good idea that will reduce the rate of fraud drastically in our banking system but coming at the wrong timing. We need more lectures on and explanations.

jdpumping
jdpumping
Member
9 months ago

Of limiting cash withdrawal will help fight against fraud I’m in total support of it,anything that would make life good and way for the citizenry I will like it to be put in place.

Abusi
Abusi
Member
9 months ago

I actually want to see how this cash withdrawal policy will curb fraud. Although to an extent, it will help place a restriction to amount of withdrawals, but what if it’s in the time of emergency. It will be so difficult.

theApr
theApr
Member
9 months ago

It’s a good way to start. This policy will keep fraud in check. Money laundering and the culture of spraying loads of cash at event. With time we’ll bend with the policy. It’s for the best

Kazeem1
Kazeem1
Member
9 months ago

Fraudulent activities are rampant in Nigeria, destroying the country’s social and economic status quo and giving the country a poor name internationally.

Adesanyaj72
Adesanyaj72
Member
9 months ago

As long as Nigerians keep getting arrested for fraud, countries will continue to have negative ideas about most Nigerians.

Chibuzor
Chibuzor
Member
9 months ago

The Central Bank of Nigeria recommended a regulation that would see to it that there is a restriction in the amount of cash that may be withdrawn via Automated Teller Machines.

Taiwoo
Taiwoo
Member
9 months ago

Due to the limit on withdrawal, which has been fashioned to automatically block and trace compromised accounts, this new policy would serve to dissuade criminals from scamming innocent folks, which is a positive development.

Hassan Isa
Hassan Isa
Member
9 months ago

The new cash withdrawal restriction policy has drawn a lot of criticism, but according to the Central Bank of Nigeria, it was implemented to help Nigeria get rid of the widespread electronic fraud that has been plaguing the nation.

Godsewill Ifeanyi
Godsewill Ifeanyi
Member
9 months ago

Accounts that are suspected of being involved with fraud and can be easily traced would be subject to restrictions if this policy were put into effect.

Remi1
Remi1
Member
9 months ago

Premier criticized the banking sector in Nigeria and stated that one of the main issues was that people were reluctant to disclose fraud incidents. As a result, he encouraged the bank to establish a fraud desk and requested the Central Bank to simplify the recovery procedure.

Nwachukwu Kingsley
Nwachukwu Kingsley
Member
9 months ago

With significant assistance from the CBN, the bank is able to develop rules that will improve the security of people’s savings from the threat posed by e-fraud.

Haykaylyon26
Haykaylyon26
Member
9 months ago

This new cash withdrawal policy will help to reduce fraud in the country and help to keep thing balance. This policy will keep over withdrawing of money and be keeping to stop

DimOla
DimOla
Member
9 months ago

It is the believe of the CBN that cash withdrawal limit policy will help checkmate fraudulent activities not considering the effect of it on ordinary citizens. Nigeria is not ready for this kind of policy and proper education should be given in regard to this.

Ultra0711
Ultra0711
Member
9 months ago

This new regulation would assist to deter criminals from defrauding innocent people because the withdrawal limit has been designed to automatically block and track compromised accounts, which is a beneficial development.

Iyanu12345ogg
Iyanu12345ogg
Member
9 months ago

I actually want to see how this cash withdrawal policy will curb fraud. Although to an extent, it will help place a restriction to amount of withdrawals, but what if it’s in the time of emergency. It will be so difficult.

Tolaniiii
Tolaniiii
Member
9 months ago

This new policy would be beneficial because the withdrawal restriction is designed to immediately block and track compromised accounts, discouraging criminals from defrauding unsuspecting users.

Christiana
Christiana
Member
9 months ago

In Nigeria, fraud is widespread, wreaking havoc on the country’s economy and social fabric while also tarnishing its reputation abroad.

Bola12
Bola12
Member
9 months ago

The CBN gives the bank a lot of help, so they can make guidelines to protect people’s money against e-fraud.