Limit Maximum Cash Allowed By Individuals To $3,000, NEFGAD Urges Tinubu

The Network for the Actualization of Social Growth and Viable Development (NEFGAD) has urged President Bola Tinubu to limit maximum cash allowed by individuals to $3000 as a way of controlling the free fall of naira at the international market.

The group made this known in a statement released to the media on Friday and signed by its head of office and Chief Economist Mr Akingunola Omoniyi.

Omoniyi, while speaking amid the call for the outright banning of dollar transactions in the country, stated that globalization has come to stay and Nigeria cannot afford to lock herself out of international trade and globalization.

“Outright banning of dollars in the country is dangerous, it will bring more trade and monetary problems to the Nigerian economy than it will solve,” he said.

He further stressed that foreign currencies, particularly the US dollar, is a global instrument for international trade necessary for countries to transact internationally with foreign businesses, trade partners and other economies across the world.

He noted that isolating the country from global business activities is economically suicidal and shouldn’t be toyed with by the government.

“In Dubai for instance, as of today, Dirham is the official currency, but if you are transacting business or buying anything anywhere in the country, they give you payment option of either paying in Dirham or Dollar, this is the extent of globalization we are talking about,” he said.

Omoniyi further argued that the country does not have issues with online transactions in any currency as it is prone to monitoring and necessary scrutiny.

He added that looking at Nigeria’s monetary and fiscal standing, both as a developing economy and a country experiencing years of poor economic management, extreme dollarization in cash will definitely further distress the economy.

The economist spoke of the need for Nigeria to apply appropriate monetary measures of limiting the amount of cash an individual can hold in dollars or in any other foreign currencies anytime and anywhere in Nigeria.

“To effect this policy, the president can go by way of executive order, or initiate an amendment to the anti-money laundering Act that criminalizes cash in excess $3,000 or its equivalent in any other foreign currency,” he said.