December 14, (THEWILL) – The senate has asked the Central Bank of Nigeria (CBN) to upwardly adjust the limit on cash withdrawal in its new policy, in response to “public outcry.”
According to the policy, which takes effect from January 9, 2023, over-the-counter cash withdrawals by individuals and corporate entities will not exceed N100,000 and N500,000 per week respectively. It also directed that only N200 and lower denominations be loaded into banks’ ATMs.
It said the maximum cash withdrawal per week via ATM should be N100,000, subject to a maximum of N20,000 cash withdrawal per day.
The CBN, on Wednesday, directed its Committee on Banking and Finance, to interrogate the Policy while screening the two Deputy Governors renominated by President Muhammadu Buhari for confirmation by the lawmakers.
But following the adoption of the resolutions of the committee report after a heated debate by Senators on the proposed policy on Wednesday, the lawmakers asked the apex bank to make upward adjustments to the cash withdrawal limit.
The Red Chamber directed its Committee on Banking, Insurance and other Financial Institutions to embark on aggressive oversight of CBN on its commitment to flexible adjustment of the withdrawal limit and periodically report the outcome to the Senate.
Chairman of the Committee, Senator Uba Sani (APC Kaduna Central), in the report, argued that the planned Cash Withdrawal Limits, were well conceived by the CBN for the transformation of the Nation’s economy and that the action falls within the mandate of the Apex bank, as provided for, in section 2(d) and 47 of its extant Act.
However, during the general debate on the report and recommendations later adopted as resolutions, many of the Senators kicked against the timing of the policy, warning that it may lead to a mass revolt in the rural areas across the country because the rural dwellers would be seriously affected by the policy.
In his submissions during the debate, Senator Ajibola Basiru (APC Osun Central), said the proposed threshold of N100,000 and N500,000 withdrawal per week for individuals and corporate bodies respectively, was unrealistic.
“Laws are made for people and not people made or created for law. If CBN is acting under sections 2(d) and 47 of its extant Act to make life difficult for Nigerians through a policy, we need to intervene as representatives of the people.
“Such intervention from us is to make CBN realise that the proposed Cash withdrawal limits policy is unrealistic and very injurious and detrimental to the well-being of rural dwellers, many of whom are our constituents.
“Report of this committee recommending the policy to us and by extension, to Nigerians through the suggestion of flexibility in implementation, is vague, nebulous and means nothing”, he said.
On his part, Senator Adamu Aliero, (PDP Kebbi Central), said “The proposed CBN policy does not capture the informal sector and is 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’s economy is predominantly rural.”
In his contribution, Senator Adamu Bulkachuwa (PDP Bauchi North) warned that the proposed policy, if not suspended, may trigger revolt from rural dwellers.
He said recommendations made by the Senate Committee on Banking on the policy which were later adopted as resolutions, made no sense to him.
“Senate committee recommendations on the proposed CBN policy is nothing but trying to put wool in the eyes of Nigerians “, he said.
Senator Orji Uzor Kalu (APC Abia North), a member of the Committee, who signed the adopted report on the proposed policy, said, “The N500,000 per day for individuals and N3 million per day for corporate bodies being implemented in Abia, Lagos, Ogun, Rivers, FCT etc, should be sustained across the country for now.”
Also, Senator Stella Oduah (Anambra North), described the policy as punitive and draconic, which must be suspended in the interest of ordinary Nigerians.
Other Senators who kicked against the implementation of the policy as planned from January 9, 2023, were Biodun Olujimi (PDP Ekiti South), Chukwuka Utazi (PDP Enugu North), Stella Oduah (PDP Anambra North), Ibrahim Hassan Hadeija (APC Jigawa North East), among others.
But Senators Yusuf A Yusuf (APC Taraba Central), Degi Eremienyo (APC Bayelsa East) Francis Alimikhena (PDP Edo North), supported it in their separate contributions.
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