Cashless Policy: No going back on bank withdrawal limits – Emefiele

.Says CBN to slightly review amounts

.HoR summons Emefiele, wants CBN to suspend policy

By Ukpono Ukpong and Tom Okpe

The Governor, Central Bank of Nigeria, Godwin Emefiele, has said that there is no going back on the cashless policy introduced by the bank.

Emefiele stated this yesterday when he visited President Muhammadu Buhari in his country home in Daura, Katsina State.

He said that his visit was to brief the President on the happening in the Central Bank and the economy.

While assuring that the apex bank will try not to be rigid, he said that the withdrawal limits would be slightly reviewed.

“We will be reviewing from time to time how this is working because I cannot say that we are going to be rigid. But it is not to say that we will reverse, it is not to say that we will change the timing, but whether it is about tricking some amount to be a little bit higher or a little bit lower, and all the rest of them.

“We will do so because we are humans, we want to make sure that we make life good for our people. We do not want to make life difficult for them. So there is no need for anybody to worry, the central bank is monitoring what is happening and I can assure everyone that we are up and alive to our responsibilities and we will do what is right for Nigeria and Nigerians.

Furthermore, he said “You know there are so many things happening concerning issues bothering on the currency and the fact that only yesterday, the new currency has now reached the banks and we believe that the banks will begin to distribute these currencies to the members of the public who are their customers; and to assure the president that things are going on well about the currency as well as issues bothering on the cashless policy that we recently introduced.

Speaking on the level of preparedness as regards the December 15 commencement date, the CBN Governor said “We are more than prepared because December 15 is when we will issue the cash but we have to move it forward because it leaped. The President launched it in November 26 instead of December 15 that the President unveiled it. And I just told you now that yesterday, the banks have received the new cash and they have started dispensing them.

“I can only just assured you that it will go round, let us just be calm, luckily the old currency continued to be legal tender till January 31, 2023. So, I want to crack a joke, both the painted (new notes) and unpainted (old notes) will operate concurrently as a legal tender. But by January 31, the unpainted one will not be useful you again, so please take it to your bank as quickly as possible.

“Well, the Senate of the Federal Republic is National Assembly, they are legislative arm of the government and from time to time we brief them about what is happening and about our policies and I’m aware that they have asked for some briefings and we will brief them. But I think it’s important for me to say that the cashless policy started in 2012. But almost three to four occasions we had to step down the policy because we felt that there is a need for us to prepare ourselves and deepened our payment system infrastructure in Nigeria. Between 2012 and now 2022, almost about 10 years, we believe that a lot of electronic channels have been put in place that will aid people in conducting banking and financial service transactions in Nigeria.

We heard about people talk about some of the people in the rural areas and the truth is that even online banking, as I was coming out to Daura, I saw a kiosk that has super-agent today. It’s because of the way we felt that there was a need for us to deepen the payment system infrastructure.

We have 1.4 million super agents that are all over different parts of the country, all local governments, and all villages in this country. And I have told my colleagues, some of their names are already on the CBN website and we will publish all the names of all the super agents.

And having super-agent which is different from the banks which is different from microfinance banks, which is different from other financial institutions. Having 1.4 million of them is as good as having 1.4 million banking points where people can conduct services.

And we think, Nigeria as a big country, the biggest economy in Africa that we need to leapfrog into the cashless economy. We cannot continue to allow a situation where over 85 per cent of the cash that is in circulation is outside the bank. More and more countries that are embracing digitization have gone into cashless.

And I said it at different fora, that this is not targeted at anybody, it’s just meant for the good and development of the Nigerian economy and we can only continue to appeal to Nigerians to please see this policy the way we have presented it.”

He said that currently, the “central bank, have taken back more than half a trillion and in the bank we also have close to have a trillion. But what we have done in the central bank is to move more people from different departments into currency processing so that they can process this cash as quickly as possible and from there, banks can now move what they have with them.”

He said that the President was very happy and said “we should carry on our work, no need to fear, no need to bother about anybody.”

The Daily Times recalls that the CBN recently issued a notice which stipulates that “maximum cash withdrawal over the counter (OTC) by individuals and corporate organisations per week shall henceforth be N100,000.00 and N500,000 respectively, adding that withdrawals above these limits shall attract processing fees of 5% and 10% respectively.

Meanwhile, the House of Representatives on Thursday directed the Central Bank of Nigeria, (CBN) to suspend the implementation of the new cash withdrawal policy billed to take off on January 9, 2023, pending compliance with the provisions of the Act establishing the apex bank.

The House also summoned, Godwin Emefiele, the CBN Governor in accordance with the provisions of the Apex Bank Act to brief the parliament on several policies of the bank recently, particularly the new currency and the withdrawal limit policy.

These resolutions were sequel to adoption of a motion of urgent public importance moved by Rep Magaji Da’u Aliyu, chairman House Committee on Power, after outpouring their anger on the policy.

Aliyu had while moving the motion, said the new policy which limits daily cash withdrawal to N100,000 weekly should not be allowed to stand as it will adversely affect the Nigerian people, especially those running small-scale businesses.

He recalled that the CBN issued a notice which stipulates that: “Maximum cash withdrawal over the counter (OTC) by individuals and corporate organisations per week shall henceforth be N100,000.00 and N500,000 respectively. Withdrawals above these limits shall attract processing fees of 5% and 10% respectively.

“Third party cheques above N50,000.00 shall not be eligible for payment over the counter, while extant limits of N10,000,000.00 on clearing cheques still subsist.

The maximum cash withdrawal per week via Automated Teller Machine, (ATM) shall be N100,000.00 subject to a maximum of N20,000 cash withdrawal per day. Only denominations of N200.00 and below shall be loaded into the ATMs.

“Maximum cash withdrawal via point of sale, (PoS) terminal shall be N20,000.00 daily. In compelling circumstances, not exceeding once a month, where cash withdrawals shall not exceed N5,000,000.00 and N10,000,000.00 for individuals and corporate organizations, respectively, and shall be subject to the referenced processing fees in (1) above, in addition to enhanced due diligence and further information requirements.”

The lawmaker said majority of small business owners in Nigeria are the major drivers of the Nigeria’s economy, and who are majorly residents of rural area, carried on their business, trade and activities in the said rural business areas.

“The House is further aware that majority of these small business owners transacts their businesses, trade and transactions in physical cash and are in most cases not inclined to the use of electronic banking system as most of them are either illiterate, half educated or not learned.

“Disturbed that these set of Nigerians who are the drivers of Nigeria Economy will be seriously negatively affected and their business and source of livelihood may be seriously impaired with these new directives of Central bank of Nigeria.

“Also disturbed that this directive of Central Bank, has been generating serious uproar and given low business owners serious concern since the said released as a result of the impact it may have given short time notice given by the CBN.

“Acknowledged that the Central Bank of Nigeria has the right to issue monetary policies on the Nigeria Economy to be able to guide and direct the Economy to the right part of recovery and growth.

“Concerned however, that the new policies rolled out by CBN, will definitely have a negative impact on the already dwindling Economy, and further weakens the value of Nigeria, as Nigerians may resolve to using dollars and other Currencies as a means of trading and thus further valued Naira, and weakens the Economy,” Aliyu argued.

According to him, while the country was trying to come to terms with the decision to redesign the currency, the CBN was coming up with yet another policy that will adversely affect the masses without proper advocacy.

But, Rep Ndudi Elumelu, Minority Leader of the House supported the CBN policy, saying it will curb banditry, kidnapping and reduce incidence of corruption.

Elumelu, advised that the motion should be stepped down, till the committee chairman of banking and finance brief the parliament on, if the CBN Governor has been briefing them.

However, some of his colleagues rejected his position and condemned the decision of the CBN.

Rep Mark Gbillah (LP, Benue) raised a point of order on the provisions of the Central Bank Act, saying that the CBN was yet to explain to Nigerians how the redesigning of the Naira was funded, as there was no approval of such expenditures by the national assembly.

Corroborating his view, another lawmaker, Rep Aminu Suleiman described CBN new policy as draconian and heartless and urged his colleagues to look into the CBN Act and see how they can diminish their powers to prevent situations like this.

READ ALSO: Glo presents house prize to teenage winner in Festival…

He said: “My people are terribly affected by this policy change of CBN. Several government chief executive has out lived their stay in office. Creating this kind of draconian policy and giving Nigeria just a month; most villages don’t have banking system coverage.

“The CBN under Emefiele woke up to create this heartless policy. This will wipe out the progress we have made in creating small scale businesses. Let’s search our books and impose necessary laws to diminish CBN excessive powers, we should look into CBN laws and ensure it’s not done.”

Speaker of the House, Femi Gbajabiamila, after confirming from some members of the relevant committees on the absence of Emefiele for the briefing relied on sections of the laws so quoted to sustain the point of order, ruling that the Governor be summoned to brief the House next week, December