Cash withdrawal limit not based on politics — CBN

The Central Bank of Nigeria (CBN) says its policy of cash withdrawal limit is not based on politics, contrary to insinuations.

The Deputy Governor, CBN, Mrs Aisha Ahmad said this in Abuja on Thursday when she answered questions from lawmakers at the House of Representatives during plenary.

Ahmad, who represented the CBN Governor, Mr Godwin Emefiele, said the policy was sequel to critical thinking, research and other considerations.

She was responding to a question by Rep. Chinedu Obidigwe (APGA-Anambra) who wanted to know if the policy was aimed at favouring the ruling All Progressives Congress (APC) in 2023 general election.

Ahmad said that the CBN had ordered for N500 million to be printed for circulation, adding that the bank had been flexible by reviewing the policy upward from N100,000 to N500,000 for individuals and from N500,000 to N5 million for corporate bodies.

She said that the policy was expected to create new jobs in the ICT sector, contrary to insinuations that it would lead to job lost.

She said the operators of Point on Sales (POS) would not be affected by the policy, adding that that the CBN was aware that the POS had created a means of livelihood for about 44 million Nigerians.

Reports that the Ahmad was grilled by the lawmakers who asked questions bothering on the cash policy.

Rep. Femi Gbajabiamila, the Speaker, said the reason why the house should be briefed on such policy was because the lawmakers represented the people.

He added that although Naira redesign may be a good intention, it was necessary for the apex bank to carry the lawmakers along.

Gbajabiamila queried the CBN rationale for three months’ notice, when other apex banks usually gave more than a year’s notice for such policies.

“How come can we rationalise three months’ notice in a cash-full society compare to England where a year notice was given,” he said.