Cash withdrawal: Senate fails to grill CBN chiefs

The Senate on Friday vetted the two new deputy governors of the Central Bank of Nigeria and backtracked on plans to grill officials over the cash withdrawal limit policy unveiled by the apex bank on Tuesday.< /p>

The Red Chamber had, on Wednesday, during the plenary session, instructed the Banking, Insurance and Other Financial Institutions Committee to seek clarification from the heads of the apex banks when selecting them for renewal.

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Controversies continued following the planned policy of the Central Bank of Nigeria to limit cash withdrawals for individuals to N100,000 and corporate bodies to N500,000 per week, the heads of the apex banks have however told the Senate Committee that it was high time for Nigeria to adopt this policy.

Our correspondent observed that the senators simply demanded an explanation from the deputy governors without delving into the details of the policy.

The CBN Deputy Governor on Financial System Stability, Ms. Aishat Ahmad, explained that the policy was introduced in 2012 under the administration of former President Good Luck Jonathan and extended to Abuja and six other states in 2013.

She told the committee that the cashless policy fully implemented by the CBN is not new as the required steps in this direction were taken in 2012 with Lagos State as a pilot scheme and Abuja and six more states in 2013.

Ahmad added, "Although the full implementation of the policy has not been done by CBN since then, its introduction has brought about many transformations in the banking and payment system.

“Distinguished Chairman of this Committee and Members, I am pleased to have the opportunity to make presentations on the planned withdrawal limit of N100,000 for individuals and N500,000 for corporate entities per week, from January 9, 2023, in accordance with the cashless policy introduced in 2012.

"Based on information available to CBN, the time has come for full implementation of the policy with the proposed limit on cash withdrawals per week."

She added, "The infrastructure required for its implementation in terms of financial hotspot system, mobile money, E-naira, etc., is available in all 774 government councils local of the country.

"All the fears and concerns expressed by Nigerians regarding the planned limited cash withdrawal policy are being seriously considered as no one or any section of Nigerians will be left behind.

"In the past, banking transactions in Nigeria were limited to only bank branches as the only means, which has now expanded to multiple electronic platforms as well as a geometric increase in the number of agents by 88,000 to 1.4 million."< /p>

The CBN Chief, however, said that Apex Bank is flexible and will be ready to consider views that will not make the policy burdensome for any class of Nigerians during implementation.

After his presentation, the committee chaired by Senator Uba Sani (APC Kaduna Central), demanded that CBN chiefs "bow down and leave", as proposed by the Senate Whip who is also Deputy -chairman of the commission, Senator Orji Kalu (APC, Abia North) and seconded by Senator Danjuma Goje (APC, Gombe Central).

Sani said, "With the presentation made by CBN Deputy Governor on Financial System Stability, Aisha Ahmad, on the planned limited cash withdrawal, the required information on the merits of the policy was provided and will be communicated to the Senate plenary through our report.

“The two deputy governors, who have already been shortlisted before serving their first terms, do not need to do so again, as unanimously agreed by the members of the committee. bow and walk away."

Some of the senators present at the screening were Betty Apiafi, (PDP, Rivers West); Seriake Dickson (Bayelsa West), Uche Ekwenife, (PDP, Anambra West) Central); Yusuf Yusuf, (APC, Taraba Central); Ibrahim Danbaba (APC Sokoto South); Yakubu Oseni (Kogi Central); Istifanus Gyang, (North Plateau); Bello Mandiya, (APC Katsina South); Sani Musa, (eastern Niger); Onyebuchi Ezenwa,(Imo East); Olubunmi Adetunmi, (Ekiti North) and Lawali Anka (Zamfara West)