Subject: BUSINESS OPERATION: LAGOS GOES CASHLESS BY 1ST JANUARY 2012 The Central Bank of Nigeria (CBN) has

announced 1st January 2012 as the take off date for the new policy on a cashless economy in Nigeria, with Lagos State taki ng the lead as the take off point. CBN had in April 2011 issued a policy on reta il cash collection and lodgement aimed at moderating the volume of cash in the s ystem. The policy stipulates as highlighted below that from 1st January 2012 in Lagos and subsequently, June 2012 across other States in Nigeria: Individuals shall not withdraw or lodge a daily cumulative cash in excess of =N= 150,000 over the counter, otherwise =N=100 per thousand i.e. 10% will be charged for amount above the cumulative limit. Corporate customers shall not withdraw or lodge a daily cumulative cash above =N =1,000,000 over the counter otherwise, =N=200 per thousand i.e. 20% will be charged for amo unt above the cumulative limit. By this CBN policy directive, all CSBs will no longer be able to lodge cash in e xcess N1, 000,000 (one million Naira) as stipulated and the usage of cash at all company s petty cash offices will be reduced to the barest minimum. CSB OPERATIONS CSB operation is now to be carried out as indicated below: 1. All customers should be instructed to make use of the instant cash transfer a t the designated bank and release the evidence of transfer for confirmation before obtaining serv ice/goods. 2. All Customers can make use of Point of Sales (PoS) machines/terminals to remi t money to companys account. (The point of sales machines/terminals will be deploye d to all existing CSBs before the CBN deadline). PETTY CASH OPERATION 1. Maximum petty cash float approved for Lagos company in other regions apart fr om the Lagos Head Office is now =N=100, 000 whilst Head office is now =N=300,000 . 2. All emergency need for cash in excess of =N=20,000 (twenty thousand Naira) wi ll have to be routed via cheque through the petty cash office. The emergency req uirement must be finally approved by the Executive Finance Operation and the Chi ef Finance Officer (CFO). Such amount should preferably not be more than =N=30,0 00 (thirty thousand Naira). 3. All repairs and maintenance must be pre-empted and the payment must be via ch eque processes. 4. All drivers and stewards salaries will now be routed through the Human Resources Division s payroll for administration. Therefore, drivers and stewards will be expe cted to own a salary account in his /her name for this purpose. 5. Everyone including expatriates are now mandated to maintain a dedicated accou nt with the designated banks in order to claim necessary travelling allowance(s) . 6. The payment for security services will now be made into the dedicated account of security personnel as cash withdrawal on company s account is now eliminated. The introduction of the changes is immediate, while this would be synchronized w ith the CBN deadline of 31st December 2011. Subsequently, Staff are strongly advised to approach their banks for the issuanc e of debit/credit cards which will enable them to carry out transaction at no co st. Cards are safer, and at the same time it eliminates the inherent risks of moving cash around.