Cashless policy: CBN officials appear before Senate panel for screening, say concerns will be resolved
Two officials from the Central Bank of Nigeria appeared before the Senate Banking and Finance Committee on Friday and explained the new withdrawal limit introduced by the bank.
They are the bank's Deputy Governor for Financial System Stability, Aishat Ahmad, and Deputy Governor for General Services, Edward Adamu.
The duo, who were recently reappointed by President Muhammadu Buhari, were before lawmakers for their screening exercise. It was during the appointment that the senators demanded an explanation of the policy - which has drawn mixed reactions since the announcement.
PREMIUM TIMES reported how the apex bank, in a memo on Tuesday, announced a limit on cash withdrawals made by individuals and organizations beginning January 9, 2023.
The bank has ordered that over-the-counter cash withdrawals by individuals and corporations not exceed N100,000 and N500,000, respectively, per week. He also ordered that only denominations of N200 and below be loaded into bank ATMs.
The CBN has stated that the maximum cash withdrawal per week via an ATM should be N100,000, subject to a maximum cash withdrawal of N20,000 per day.
As the Senate resolved on Wednesday to deliberate on the matter next week, its counterparts in the lower house summoned CBN Governor Godwin Emefiele for an explanation. They also called for the policy to be reviewed.
The cashless policy is not newIn her address, Ms. Ahmad said the policy was not new. It was introduced in 2012 under the administration led by Goodluck Jonathan.
She said it started in Lagos and then expanded to Abuja and six other states in 2013.
Although full implementation of the policy has not been done by CBN since then, it said its introduction at the time led to many transformations in the banking and payment system.
>"Based on the information available to CBN, the time has come for the full implementation of the policy with the proposed limit on cash withdrawals per week," she explained. “The infrastructure required for its implementation in terms of financial hotspot system, mobile money, e-naira, etc., is available in all 774 local government councils nationwide.”
She assured that all fears and concerns voiced by Nigerians over the new policy are being seriously considered as no one will be left behind.
She however said that the apex bank is flexible and will be ready to accommodate opinions that will not make the policy burdensome for any category of Nigerians during implementation.
Committee Chairman Uba Sani (APC, Kaduna Central) seemed satisfied with the explanation and asked the candidates to "bow and go" - after Senators Orji Kalu and Danjuma Goje proposed candidates be excused.< /p>
“With the presentation made by…Ahmad on the planned limited cash withdrawal, the required information on the merits of the policy has been given and will be conveyed to the Senate Plenary through our report,” a- he said.
"...Having already been shortlisted before serving their first terms, they do not need to do so again as unanimously agreed by the committee members. They should therefore bow and stand. go."
It is unclear whether the Senate will move forward with the plan to debate a motion on the new policy after explanations from the CBN candidates.
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Two officials from the Central Bank of Nigeria appeared before the Senate Banking and Finance Committee on Friday and explained the new withdrawal limit introduced by the bank.
They are the bank's Deputy Governor for Financial System Stability, Aishat Ahmad, and Deputy Governor for General Services, Edward Adamu.
The duo, who were recently reappointed by President Muhammadu Buhari, were before lawmakers for their screening exercise. It was during the appointment that the senators demanded an explanation of the policy - which has drawn mixed reactions since the announcement.
PREMIUM TIMES reported how the apex bank, in a memo on Tuesday, announced a limit on cash withdrawals made by individuals and organizations beginning January 9, 2023.
The bank has ordered that over-the-counter cash withdrawals by individuals and corporations not exceed N100,000 and N500,000, respectively, per week. He also ordered that only denominations of N200 and below be loaded into bank ATMs.
The CBN has stated that the maximum cash withdrawal per week via an ATM should be N100,000, subject to a maximum cash withdrawal of N20,000 per day.
As the Senate resolved on Wednesday to deliberate on the matter next week, its counterparts in the lower house summoned CBN Governor Godwin Emefiele for an explanation. They also called for the policy to be reviewed.
The cashless policy is not newIn her address, Ms. Ahmad said the policy was not new. It was introduced in 2012 under the administration led by Goodluck Jonathan.
She said it started in Lagos and then expanded to Abuja and six other states in 2013.
Although full implementation of the policy has not been done by CBN since then, it said its introduction at the time led to many transformations in the banking and payment system.
>"Based on the information available to CBN, the time has come for the full implementation of the policy with the proposed limit on cash withdrawals per week," she explained. “The infrastructure required for its implementation in terms of financial hotspot system, mobile money, e-naira, etc., is available in all 774 local government councils nationwide.”
She assured that all fears and concerns voiced by Nigerians over the new policy are being seriously considered as no one will be left behind.
She however said that the apex bank is flexible and will be ready to accommodate opinions that will not make the policy burdensome for any category of Nigerians during implementation.
Committee Chairman Uba Sani (APC, Kaduna Central) seemed satisfied with the explanation and asked the candidates to "bow and go" - after Senators Orji Kalu and Danjuma Goje proposed candidates be excused.< /p>
“With the presentation made by…Ahmad on the planned limited cash withdrawal, the required information on the merits of the policy has been given and will be conveyed to the Senate Plenary through our report,” a- he said.
"...Having already been shortlisted before serving their first terms, they do not need to do so again as unanimously agreed by the committee members. They should therefore bow and stand. go."
It is unclear whether the Senate will move forward with the plan to debate a motion on the new policy after explanations from the CBN candidates.
Support the integrity and credibility journalism of PREMIUM TIMES Good journalism costs a lot of money. Yet only good journalism can guarantee the possibility of a good society, an accountable democracy and a transparent government. For free and continued access to the best investigative journalism in the country, we ask that you consider providing modest support to this noble...What's Your Reaction?
