Cash withdrawal policy: CBN bows to pressure, reviews weekly limits upward

.Pegs individual limit at N500, 000, corporate N5m

.Apex Bank to address Reps today as Emefiele seeks medical treatment abroad

By Temitope Adebayo and Tom Okpe

The Central Bank of Nigeria (CBN) has bowed to public outcry on the weekly cash withdrawal limits, reviewing individual amounts to 500,000 and corporate withdrawals to N5 million.

In a circular addressed to all Deposit Money Banks (DMBS) and other Financial Institutions (Payment Service Banks (PSBSs), Primary Mortgage Banks (PMBs), Microfinance Banks (MFBs), Mobile Money Operators (MMOs) and Agents, the apex bank increased the weekly withdrawals for individuals and corporate organisations to N500, 000 and N5 million, respectively.

In the circular titled, “Re: Naira Redesign Policy – Revised Cash Withdrawal Limits” obtained by The Daily Times, the CBN explained that the review was a sequel to the feedback it received from stakeholders.

“The CBN recognizes the vital role that cash can play in supporting the underserved and rural communities and will ensure an inclusive approach as it implements the transition to a more cash-less society”, the apex bank stated.

Meanwhile, Deputy Governor of the Central Bank of Nigeria, (CBN) in-charge of Financial System Stability, Aisha Ahmed will brief the House of Representatives on the apex bank’s financial withdrawal limit today (Thursday).

Ahmed will be addressing the lawmakers on behalf of the CBN Governor, Godwin Emefiele who is currently attending to health challenges while on official assignment abroad.

Emefiele had on Tuesday informed the House which summoned him last week over the new cash withdrawal limit that he was outside the country on official engagement.

Consequently, the House re-invited the governor for appearance, either in person or by proxy on Thursday.

But at Wednesday plenary, Emefiele wrote the House that he was still abroad, disclosing that he was attending to some health challenges and delegated his deputy to lead a committee of governors to brief the House.

The letter read by speaker of the House, Femi Gbajabiamila said: “We refer to your letter of December 20, 2022 on the above subject matter inviting the governor of Central Bank of Nigeria to appear before the House on Thursday, December 22.

“Regrettably, the Governor is out of the country on official engagement as well as attending to the some health challenges. He is therefore unavailable to attend this briefing.

“Giving the urgency associated with the briefing, the committee of governors led by Mrs. Aisha Ahmed deputy governor, Financial System Stability is prepared to brief the House.”

Gbajabiamila urged the lawmakers to allow Emefiele’s representative to brief the House on Thursday as the CBN governor was attending to health challenges.

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He said: “Honorable Colleagues, at this stage, we have to rise above certain things and not make it personal anymore in the sense there is a very critical issue which is the the issue of this new cash policy.

“If the governor has said he is out of the country and in good faith, he is attending to health conditions, if that is the case, would it serve this House to continue to insist on his physical appearance? Two, would it serve the interest of the country to say we will wait whenever he comes back in January because a lot would have happened between now and then?

“But if he has asked somebody who is fully equipped with all the facts, who can be questioned by the House, who is the deputy governor, financial system stability which is what this is all about and who is coming with the committee of governors, I think the point has been made. Let’s hear from her because if we hear from her, we are hearing from the governor. It is akin to me going somewhere and I ask the deputy speaker to represent me and they said no, deputy cannot come.

“I think under the circumstances, if he had said he was in Nigeria and could not make it, that will be unacceptable. So, I think we should consider it. Whatever the resolution of the House, we will go with it.”

The development pitched the lawmakers against themselves with some agreeing and others disagreeing with the speaker, suggesting that Ahmed should rather brief the House Committee on Banking and Currency instead of the whole House.

Segun Odebunmi, a member of the House who made the suggestion told his colleagues that millions of Nigerians were looking up to the House as the House of the masses and they must always stand by the masses of the country.

He said: “I am a member of the House Committee on Banking and Finance and I can tell you authoritatively, this is my 12th year in the House, I have never seen the kind of the CBN governor we have today in terms of respecting the constitution of this country. The whole House is not inviting the governor and he is giving excuse upon excuse. If the House wants to consider the representative of the governor, then, I will suggest you refer him to the committee of the House so that they can report back to the House.

“But if you are now inviting the representative of the governor to come and speak to the House, Mr. Speaker, it will not augur well with the institution of the House. I want to suggest that if that is the opinion of the House, then we refer them to the committee of the House.”

However, another member, Olajide Jimmoh said it was not out of place to allow Emefiele’s representative to brief the House.

“Mr. Speaker, I want to suggest that considering the fact that we have heard from the letter sent to us, this is an institution, the CBN is also an institution, we should not go on personality. We have invited the CBN governor.

“If he’s not going to be around and they have promised that another body from the CBN will come and address this institution. For purpose of clarity and other germane issues that are of necessity, I think we should allow that to happen,” he said.

Also, the chief whip of the House, Mohammed Mongunu in his remarks said that it was the resolution of the House on Tuesday to allow representative.

In his contributions, the deputy speaker Idris Wase appealed to members to allow Emefiele’s representative to appear for him.

“I think Olajide has captured what is supposed to be a formal proceeding of the House; that we are not pursuing anything personal but in the interest of our country. And CBN is not alone. He is the head of an institution.

“So, if they are coming on his behalf and they will give us sufficient information, I think there is nothing about that. Moreso, he spoke about health condition which you and I don’t have any control over it”, he said.

Ruling on the matter, Gbajabiamila said that the representative would brief the House at 10am on Thursday.

“I don’t think there is any question to put. So, we will expect the team, the committee of governors led by Mrs. Aisha Ahmed, deputy governor, Financial System Stability tomorrow at 10am to brief the House on the new cash policy as prescribed by the CBN act,” Gbajabiamila said.