Cash limit: Senate orders CBN to expand N100,000/N500,000 weekly withdrawal window
…CBN eyes grassroots awareness, enlightenment to push cashless economy
Stronger reflections of the resistance of lawmakers in the National Assembly against the cash withdrawal limit of the Central Bank of Nigeria (CBN) took a firmer position as the Senate on Wednesday placed more pressure on the Apex Bank, ordering it to give in for an upward adjustment.
Lawmakers in the Upper Chamber did not hide their feelings over the policy to limit cash withdrawal by any individual to N100,000 and Corporate bodies to N500,000 per week from January 9, 2023, kicking against the timing.
Although there were some sort of divergent views, few Senators kicked against the proposed policy, arguing that Nigeria was not mature for it and that the rural people would bear the brunt of it.
On stern terms lawmakers attacking the policy described it as anti-people, fearing that it may lead to mass revolt in the rural areas across the country.
The Senate consequently issued an order to the CBN to make an upward adjustment of the proposed withdrawal limit of N100,000 and N500,000 per week for individual and Corporate bodies, respectively, in response to public outcry.
Although the Senate supported the CBN in the continuous implementation of transformational payments and financial industry initiatives in line with its mandate in accordance with the CBN Act, the Upper Chamber mandated the Senator Uba Sani, APC, Kaduna Central led Committee on Banking, Insurance and other Financial Institutions to embark on aggressive oversight on the Apex Bank on its commitment to flexible adjustment of the withdrawal limit and periodically report outcome to the Senate.
Resolutions of the Upper Chamber on Wednesday were sequel to the adoption of the report of Banking, Insurance and other Financial Institutions after heated debate by Senators on the proposed policy after the presentation by the Chairman.
In his presentation of the report, Senator Uba Sani argued that the planned Cash Withdrawal Limits was well conceived by the CBN for 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.
According to him, the implementation of the Cashless policy in six states resulted in reduction in the cost of currency management by 15.20 per cent from N36.97 billion to N31.35 billion between 2013 and 2014.
The trend, he argued, however reversed in 2014 following the suspension of cash deposit charges in the six states with currency handing cost increasing by 17.20 per cent between 2014 and 2015 following the suspension.
The cost of currency management has been on the increase since then, Total cost of currency management for 10 months to end October 2022 was N47.25 billion.
During debate on the report and recommendations that were later adopted as resolutions, Senator Ajibola Basiru, APC Osun Central said that 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 section 2(d) and 47 of its extant Act to make life difficult for Nigerians through a policy, as representatives of the people, we need intervene,” he fumed.
Meanwhile, the CBN in its efforts to drive the cashless policy has begun to take its campaign to the local levels by collaborating with local authorities and relevant bodies for enlightenment to integrate people at the grassroots into the cashless economy system.
The Apex bank in collaboration with the Lagos Island East Local Council Development Area and Jordan FM on Wednesday gathered market merchants in the LCDA for sensitisation to commence the process of integrating them into the system.
At the Stakeholders Consultative Forum for sensitisation on the eNaira Adoption and Digital Economy for Market Merchants and SMEs, representatives of CBN, from the Information Technology Department, Lagos, led by Chijioke O., said the eNaira digital currency of the Apex Bank is 100 percent secured.
Allaying the fears of the traders, he assured them that the security system of the platform is reliable, stating confidently that they “can’t be scammed on it.”
According to him, the eNaira as CBN’s digital currency was informed by the need to further cashless policy, enlightening the traders that it is reliable and diverse forms of transactions could be effected through it.
The Managing Director, Jordan FM, Mr Lanre Johnson, a partner in the enlightenment programme, expressed optimism on the workability of the integration of the merchants into the system, appreciating the intent of collaboration for sensitisation for acceptance at the local level.
He said the sensitisation programme is another reflection of Local Government (LG) revolution in the Country, mentioning that development must start from LG levels, while submitting that it was significant that representation of LG be incorporated significantly at the Federal Government decision making organs.
Mentioning that the eNaira adoption and Digital Market is to augment LG revolution project by way of eNaira framework, he said by leveraging technology, the platform is meant for good of local economy.
He said it was important for them to adopt the system to cushion the effect of cash withdrawal limit on businesses, mentioning that Northerners are already buying into the idea.
Recall barely eight days ago, a memo to banks issued and signed by the Director of Banking Supervision, CBN, Haruna .B. Mustafa, disclosed the Apex Banks cash withdrawal limit, providing that individuals will only be able to withdraw N100,000 per week (from over the counter, Point of Sale Machines or the Automated Teller Machines), while organisation can access N500,000 per week.
The development has since attracted arguments on its benefits and impacts, while lawmakers in both the lower and upper chambers of the National Assembly have invited the CBN for questioning.
