National Assembly

Cashless Policy: What CBN Told Senate Panel Over Cash Withdrawal Limits

Cashless Policy: What CBN Told Senate Panel Over Cash Withdrawal Limits

Cashless Policy: What CBN Told Senate Panel Over Cash Withdrawal Limits

As controversies continue to trail the planned policy of the Central Bank of Nigeria (CBN) to limit cash withdrawal for individuals at N100,000 and corporate bodies to N500,000 per week, the bank has succeeded in convincing the senate committee on banking, insurance and other financial institutions of the need for it.

The policy as disclosed by the Deputy Governor of CBN on Financial System Stability, Mrs Aishat Ahmad was introduced in 2012 during former President Good luck Jonathan’s administration and extended to Abuja and six other states in 2013.

The CBN Deputy Governor made the disclosure during the screening exercise carried out on her and her counterparts on Corporate Services, Edward Lametek Adamu, for reappointments by the Senate Committee on Banking, Insurance and other Financial Institutions.

She said the cashless policy being fully implemented by CBN now is not new, as required steps in that direction, was taken in 2012 with Lagos State as a pilot scheme and Abuja and Six other states in 2013.

She explained that though full implementation of the policy has not been carried out by CBN since then, but its introduction then, has brought a lot of transformation in the banking and payment system.

” Distinguished Chairman of this committee and members, I’m happy for the opportunity given to make presentations on the planned N100,000 withdrawal limit for individuals and N500, 000 for Corporate Bodies per week, beginning from 9th January 2023, in line with the cashless policy introduced in 2012.

” Based on information available to CBN, the time for full implementation of the policy with a proposed limit on cash withdrawals per week is now.

” Required infrastructure for its implementation in terms of financial access point system, mobile money, e-naira etc, are available across the 774 local government councils in the country.

” All fears and worries being expressed by Nigerians on the planned limited cash withdrawal policy are seriously being taken care of as nobody or section of Nigerians, will be left out.

” In the past, banking transactions in Nigeria were limited to Bank Branches alone as the only means, which has now expanded into multiple electronic platforms as well as geometrical increase in the number of agents from 88,000 to 1.4million “, she said.

She however said that the Apex bank is flexible and will be ready to accommodate opinions that won’t make the policy strenuous to any category of Nigerians during implementation.

After her presentation, the Committee chaired by Senator Uba Sani ( APC Kaduna Central), gave the two nominees ‘ take a bow and go treatment ‘ as moved by the Whip of the Senate, Senator Orji Uzor Kalu and seconded by Senator Danjuma Goje.

Chairman of the Committee in his remarks said: ” With presentation made by the Deputy Governor of CBN on Financial System Stability, Aisha Ndanusa Ahmad on the planned limited cash withdrawal, required information on the merits of the policy has been given and will be communicated to the Senate in plenary through our report.

” The two Deputy Governors, having earlier been screened before serving their first tenures, need not to again as unanimously agreed by members of the committee.

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