Editorial
That CBN Policy On Cash Withdrawal
Recently, the Central Bank of Nigeria (CBN) came out with a new policy pegging daily cash withdrawal and lodgement by individual at N150,000 and corporate organizations at N1million. According to the apex bank, implementation of the policy would kick off in June, 2012. The aims, the CBN says are to reduce the dominance of cash in the economy, the cost of cash management to the banking industry, security problem and money laundering.
Since the announcement of this policy, there have been scores of protest and contrast views by many Nigerians, whose lives and investments would be affected when this policy comes into effect. Even the die-hard optimists in the nation’s suffocating investment environment, are worried that the policy is coming at an embryonic stage of the economy.
While some investors argue that there is a drop in both internal and external revenue, others add that most small and medium scale entrepreneurs, including majority of the purchasing public in the country’s business environment, still prefer cash transactions as a means of payment for goods and services. They even insist that the Automatic Teller Machine (ATM) has a limit on cash withdrawal that lowers their ability to meet urgent financial needs. In fact, the bottom line of the argument is that the Nigerian society has not developed to the level of operating a cashless economy as it is practiced in most western countries. For them, the CBN is trying to make the economy run when it should be crawling.
However, it was to allay these fears that CBN Deputy Governor, Tunde Lemo, clarified that the limit to withdrawal is not absolute as those who wished to withdraw more than the stipulated amount could do so but with a fee. He said the CBN has already put in place measures to match the ATM by deploying over 10,000 sales points by 2012. According to him, by 2015, Nigeria would be where Brazil is by deploying additional 350,000 ATM terminals.
The deputy governor further said that CBN was also making biometric withdrawal possible so that everyone, including those who cannot read or write, will be covered by the new policy. According to him, the needed infrastructure would be put in place to facilitate smooth take off while a committee had been set up to ensure error free, end-to-end e-payment transaction. He also said that implementation of the new policy would begin in Lagos, the Federal Capital Territory (FCT), Port Harcourt, Kano and Aba, which account for 80 per cent of the volume of cash in the country.
The Tide believes that this CBN policy framework is a welcome development for a growing economy like ours that is striving to drive the Sub-Saharan economic landscape. There is no doubt that if the new policy is successfully implemented, it would bring lots of economic gains to the country. Although we fear that given the poor state of infrastructure and the level of illiteracy in the country, the policy may not get near the anticipated economic breakthrough that would drive the country’s Vision 20-2020, aimed at putting Nigeria in the ranks of the world’s 20 biggest economies in the next nine years.
The Tide notes that the policy is coming at a time when the nation is just recovering from the threat of global recession, and the value of the Naira against other major currencies is greatly undermining the purchasing power of many Nigerians.
Perhaps, it may be apt to draw attention to the fact that Nigeria lacks enough commercial banks to manage their daily financial transactions for several years. Out of about 89 banks before the CBN policy on capitalization in 2004/2005, only about 25 banks are now operational. Even the recent CBN reforms have exposed the vulnerability and liquidity status of some banks, triggering questions of confidence problems in the banking system.
For this new cash withdrawal policy to be effective, therefore, The Tide commends adequate public enlightenment of the banking publics. Besides, the CBN should proceed with the strategic medium and long-term goals in order to achieve the desired results. We say this because in the past, CBN had initiated policies on coins as means of business transactions which suffered setbacks due mainly to the inconveniences of conveying large coins instead of its equivalent denominations in currency notes.
We think that the success of the new policy depends largely on consistency and continuity of implementation and enforcement by the apex bank. We urge the CBN to avoid a flurry of policy changes that may compromise the gains already made. The Tide insists that the CBN should stick to its June, 2012 deadline for the take off of the new cash withdrawal policy in order not to encourage corruption. We say so because previous CBN deadlines, especially that on capitalization of banks, updating of accounts, bank reforms, among others, failed to guarantee sustainable confidence in the banking system.
The Tide, therefore, urges the CBN to adequately address the challenges of the new cash policy, and work to ensure that the Nigerian economy drives national development in such a way that every citizen is confident that their money is not only safe and secure but can guarantee them value for their sweat and hard work.
Editorial
Benue Killings: Beyond Tinubu’s Visit

The recent massacre in Yelewata, Benue State, ranks among Nigeria’s deadliest attacks of
2025. While official figures put the death toll at 59, media reports and Amnesty International estimate between 100 and 200 fatalities. This atrocity extends a decade-long pattern of violence in Nigeria’s Middle Belt, where Beacon Security data records 1,043 deaths in Benue alone between May 2023 and May 2025.
President Tinubu’s visit on 18 June—four days after the 14 June attack—has drawn sharp criticism for its lateness. This delay echoes a history of inadequate responses, with Human Rights Watch documenting similar inaction in Plateau and Kaduna states since 2013, fuelling a culture of impunity. The attack lasted over two hours without meaningful security intervention, despite claims of swift action.
The violence bore hallmarks of genocide, with survivors recounting systematic house burnings and executions. More than 2.2 million people have been displaced in the region since 2019 due to comparable attacks. Data show Benue’s agricultural output falls by 0.21 per cent in crops and 0.31 per cent in livestock for every 1 per cent rise in violence.
Security forces continue to underperform. No arrests were made following the Easter attacks in April (56 killed) or May’s Gwer West massacre (42 killed). During his visit, Tinubu questioned publicly why no suspects had been detained four days after Yelewata, highlighting entrenched accountability failures.
The roots of the conflict are complex, with climate change pushing northern herders south and 77 per cent of Benue’s population reliant on agriculture. A Tiv community leader described the violence as “calculated land-grabbing” rather than mere clashes, with over 500 deaths recorded since 2019.
Government interventions have largely fallen short. The 2018 federal task force and 2025 Forest Guards initiative failed to curb violence. Tinubu’s newly announced committee of ex-governors and traditional rulers has been met with scepticism given the litany of past unkept promises.
The economic fallout is severe. Benue’s status as Nigeria’s “food basket” is crumbling as farms are destroyed and farmers displaced. This worsens the nation’s food crisis, with hunger surges in 2023-2024 directly linked to farming disruptions caused by insecurity.
Citizens demanding justice have been met with force; protesters faced police tear gas, and the State Assembly conceded total failure in safeguarding lives, admitting that the governor, deputy, and 32 lawmakers had all neglected their constitutional responsibilities.
The massacre has drawn international condemnation. Pope Leo XIV decried the “terrible massacre,” while the UN called for an investigation. The hashtag “200 Nigerians” trended worldwide on X, with many contrasting Nigeria’s slow response to India’s swift action following a plane crash with similar fatalities.
Nigeria’s centralised security system is clearly overwhelmed. A single police force is tasked with covering 36 states and 774 local government areas for a population exceeding 200 million. Between 2021 and 2023 alone, 29,828 killings and 15,404 kidnappings were recorded nationally. Proposals for state police, floated since January 2025, remain stalled.
Other populous nations offer alternative models. Canada’s provincial police, India’s state forces, and Indonesia’s municipal units demonstrate the effectiveness of decentralised policing. Nigeria’s centralised structure creates intelligence and response gaps, worsened by the distance—both physical and bureaucratic—from Abuja to affected communities.
The immediate aftermath is dire: 21 IDP camps in Benue are overwhelmed, and a humanitarian crisis is deepening. The State Assembly declared three days of mourning (18-20 June), but survivors lack sufficient medical aid. Tragically, many of those killed were already displaced by earlier violence.
A lasting solution requires a multi-pronged approach, including targeted security deployment, regulated grazing land, and full enforcement of Benue’s 2017 Anti-Open Grazing Law. The National Economic Council’s failure to prioritise state police in May 2025 represents a missed chance for reform.
Without decisive intervention, trends suggest conditions will worsen. More than 20,000 Nigerians have been killed and 13,000 kidnapped nationwide in 2025 alone. As Governor Hyacinth Alia stressed during Tinubu’s visit, state police may be the only viable path forward. All 36 states have submitted proposals supporting decentralisation—a crucial step towards breaking Nigeria’s vicious cycle of violence.
Editorial
Responding To Herders’ Threat In Rivers

Editorial
Democracy Day: So Far…

Nigeria’s return to democratic rule in 1999 marked a watershed moment in the nation’s political history. After enduring nearly 16 years of successive military dictatorships, Nigerians embraced a new era of civil governance with the inauguration of President Olusegun Obasanjo on May 29, 1999. Since then, the country has sustained a democratic system for 26 years. But, this democratic journey has been a complex mix of progress and persistent challenges.
The formal recognition of June 12 as Democracy Day in 2018 by former President Muhammadu Buhari acknowledged a long-standing injustice. The annulment of the 1993 presidential election, Nigeria’s freest, betrayed the democratic aspirations of millions. That it took decades to honour this date reflects the nation’s complex relationship with its democratic memory.
One of the most momentous successes of Nigeria’s democracy has been the uninterrupted civilian rule over the last two and a half decades. The country has witnessed seven general elections, with power transferring peacefully among different political parties. This is particularly notable considering that prior to 1999, no civilian government had completed a full term without military intervention. The peaceful transitions in 2007, 2015, and 2023 are testaments to Nigeria’s evolving democratic maturity.
Electoral participation, while uneven, has also reflected a level of democratic engagement. In 2003, voter turnout stood at about 69 per cent, but this figure dropped to approximately 34.75 per cent in 2023, according to the Independent National Electoral Commission (INEC). Although the declining turnout raises concerns, it also highlights the increasing expectations of the electorate, who demand credible and transparent elections.
Another area of progress is the growth of a vibrant and free press. Nigerian media has played a crucial role in holding governments accountable and fostering public discourse. Investigative journalism and civil society activism have exposed corruption and human rights abuses. The rise of social media has further expanded the democratic space, enabling young Nigerians to mobilise and advocate for change, as evidenced by the 2020 #EndSARS protests.
Judicial independence has seen mixed results. On one hand, the judiciary has occasionally demonstrated resilience, such as in landmark rulings that overturned fraudulent elections or curtailed executive excesses. On the other hand, allegations of political interference and corruption within the judiciary persist, undermining public confidence in the legal system’s impartiality.
Nigeria’s democracy has also facilitated the decentralisation of power through the federal system. State governments now wield some autonomy, allowing for experimentation in governance and service delivery. While this has led to innovative policies in some states, it has also entrenched patronage networks and uneven development across the federation.
Despite these successes, Nigeria’s democratic journey faces formidable problems. Electoral integrity remains a critical concern. Reports from election observers, including those from the European Union and ECOWAS, frequently highlight issues such as vote-buying, ballot box snatching, and violence. The introduction of the Bimodal Voter Accreditation System (BVAS) and electronic transmission of results in 2023 elections showed promise, but technical glitches and alleged manipulations dampened public trust.
Corruption continues to be a pervasive issue. Nigeria ranks 145th out of 180 countries on Transparency International’s 2023 Corruption Perceptions Index, with a score of 25/100. Democratic institutions meant to check graft—such as anti-corruption agencies and the legislature—often struggle due to political interference and weak enforcement mechanisms.
Security challenges have also strained Nigeria’s democracy. Insurgency in the North East, banditry in the North West, separatist agitations in the South East, and herder-farmer conflicts across the Middle Belt have collectively resulted in thousands of deaths and displacements. According to the Global Terrorism Index 2024, Nigeria ranks as the eighth most impacted country by terrorism. The government’s difficulty in ensuring safety erodes public confidence in the state’s capacity and legitimacy.
The economy poses another critical remonstrance. Nigeria’s Gross Domestic Product (GDP) per capita stands at approximately $2,400 as of 2024, with over 40 per cent of the population living below the national poverty line. High unemployment and inflation have fueled discontent and disillusionment with democratic governance, especially among youth. Without addressing economic grievances, the democratic dividend will remain elusive for many Nigerians.
Ethnic and religious divisions further complicate Nigeria’s democratic consolidation. Politicians often exploit identity politics for electoral gains, exacerbating social tensions. Although federal character principles aim to promote inclusiveness, they have also sometimes fostered a quota mentality rather than merit-based appointments.
Gender representation remains inadequate in Nigeria’s democratic institutions. Women occupy less than 10 per cent of seats in the National Assembly, one of the lowest rates globally. Efforts to pass gender parity bills have faced stiff resistance, highlighting deep-seated cultural and institutional barriers to female political participation.
Civil liberties, while constitutionally guaranteed, are under threat. Crackdowns on protesters, restrictions on press freedom, and surveillance of activists reveal an authoritarian streak within the democratic framework. The controversial Twitter ban in 2021 exemplified the country’s willingness to curb digital freedoms, prompting domestic and international criticism.
The political crisis in Rivers State embodies broader democratic struggles. Attempts to control the state through undemocratic means expose weaknesses in federal institutions and the rule of law. Immediate restoration of democratic governance in Rivers State is vital to preserving Nigeria’s democratic integrity and institutional credibility.
Local governments remain under the control of state governors, depriving citizens of grassroots democracy. Last year’s Supreme Court judgment on local government autonomy is promising, but state-level resistance threatens its implementation. Genuine autonomy would bring governance closer to the people and foster democratic innovation.
As we mark Democracy Day, we must honour the sacrifices of Chief M.K.O. Abiola, Kudirat Abiola, Femi Falana, Chief Gani Fawehinmi, Pa Alfred Rewane, President Bola Tinubu, and countless others, who fought for Nigeria’s freedom. As democracy in Nigeria continues to evolve after 26 years, this day should inspire action toward its renewal. With despotism and state failure as real threats, both citizens and leaders must take responsibility—citizens by demanding more, and leaders by delivering. Excuses are no longer acceptable.
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