As the Central Bank of Nigeria (CBN) officially releases the redesigned naira notes of N200, N500 and N1000 to the Nigerian public today, the senate yesterday urged the apex bank to review the cash withdrawal limit it earlier announced.
Recall that the CBN had in its December 6 memo entitled ‘Naira redesign policy-revised cash withdrawal limits’ fixed the maximum cash withdrawal by individuals and corporate organisations per week at N100, 000 and N500, 000 respectively.
“The maximum cash withdrawal over the counter (OTC) by individuals and corporate organisations per week shall henceforth be N100, 000 and N500, 000 respectively.
“Withdrawals above these limits shall attract processing fees of 5 per cent and 10 per cent, respectively.
“Third party cheques above 50,000 shall not be eligible for payment over the counter, while extant limits of N10, 000, 000 on clearing cheques still subsist.
“The maximum cash withdrawal per week via Automated Teller Machine (ATM) shall be N100, 000 subject to a maximum of N20, 000 cash withdrawal per day
“The maximum cash withdrawal via point of sale (POS) terminal shall be N20, 000 daily,” it said in the memo.
Last week, the senate directed its committee on banking to interface with two newly appointed CBN deputy governors on the new policy.
After the committee’s chairman, Mr. Uba Sani (APC, Kaduna Central), presented the report and made the recommendations, some lawmakers supported the bank’s policy while others opposed it saying the implementation would affect the rural economy.
In his contribution, Sani said the cashless policy was in line with CBN Act and was intended to foster a safe, credible and efficient payment system.
“It’s neither targeted at any segment of the society nor intended to disenfranchise hardworking Nigerians and businesses as insinuated in some quarters,” he said.
Spokesman for the senate, Mr. Ajibola Basiru, said the feedback from his constituents shows that the threshold set by the apex bank is totally unrealistic, especially with regards to inflation and cost of living in the country.
“I am not oblivious of the recommendations of the committee but I am of the suggestion that they should have adjusted the indices.
“Why not say N500, 000 in place of N100, 000. This is in line with the realities,” he said.
Senator Stella Oduah (PDP, Anambra) said the policy is draconian.
“Many rural communities in Nigeria have no internet network. Without necessary infrastructure put in place, the policy will create more trouble,” she said.
Senators Yusuf Yusuf (APC, Taraba), Degi Eremienyo (APC, Bayelsa) and Francis Alimikhena (PDP, Edo) urged their colleagues to support the policy’s implementation.
In his contribution, Mr. Orji Uzor Kalu (APC, Abia) called for an upward review of the withdrawal limits.
He suggested N500, 000 daily cash withdrawal limit for individuals and N3 million for corporate bodies.
Senators Adamu Aliero (PDP, Kebbi), Hassan Hadejia (APC, Jigawa) and Adamu Bulkachuwa (PDP, Bauchi) argued that the implementation of the policy would crash the rural economy and render many jobless.
Aliero stressed the need for enlightenment since many rural dwellers do not use the banks.
“The picture painted by the (banking) committee in its report on the proposed CBN policy, is nothing but an ideal picture of what economy should be, which is a far cry from what economy is, in reality as far as Nigeria is concerned.
“The proposed CBN policy does not capture the informal sector and very detrimental to the livelihood of rural dwellers who are not into e – banking.
“Public outcry against the policy is too much; requiring serious caution as far as implementation is concerned because Nigeria economy is predominantly rural.”
“There are about 774 local governments in the country and only about 60 per cent of the 774LGs are covered by banks.
“While I support e-banking and cashless policy, I think we should do it with caution. There should be room for flexibility,” he added.
Bulkachuwa said the CBN, with the policy, was trying to pull the wool over the eyes of Nigerians and dismissed the panel’s recommendations as nonsensical.
Senators Biodun Olujimi (PDP, Ekiti) and Francis Fadahunsi (PDP, Osun) raised issue with the timing of the policy and called for massive enlightenment of Nigerians.
“The policy seems to be targeted at the elite who often devise means to circumvent the law. But it’ll affect millions of Nigerians in the rural areas,” Fadahunsi said.
In its resolutions, the senate urged the CBN to adjust the cash withdrawal limits in response to public outcry that trailed it the announcement.
It also directed its committee on banking to embark on aggressive oversight of the CBN on its commitment to flexible adjustment of the withdrawal limit and periodically report outcomes to the chamber.
Besides, the lawmakers resolved to support the CBN in the continuous implementation of transformational payments and financial industry initiatives in line with its mandate.
