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CBN defends cash withdrawal limit to Senate Committee
The apex bank stated that the cashless policy had been implemented beginning in 2012, during the government of former President…
In a statement before the Senate Committee on Banking, Insurance, and Other Financial Institutions, the Central Bank of Nigeria (CBN) defended its new cash withdrawal limitations for individuals and corporate organizations, arguing that the time has come to fully execute the cashless policy.
The apex bank stated that the cashless policy had been implemented beginning in 2012, during the government of former President Goodluck Jonathan, with a pilot program in Lagos. In 2013, Abuja and six more states were added to the policy’s list of expansions.
This justification was given by Mrs. Aisha Ahmad, the CBN’s deputy governor for financial system stability, when she and her counterpart, Edward Adamu, were being considered by the senate panel for reappointment as deputy governors of the central bank.
Ahmad claimed that the CBN’s current full implementation of the cashless policy was nothing new because the necessary steps were already taken in 2012 with Lagos State serving as a pilot program, and in 2013 with Abuja and six other states.
774 LGAs have the infrastructure needed for implementation.
The establishment of the policy, according to Ahmad, had caused significant changes in the banking and payment systems, even if the CBN had not yet fully implemented it since then.
She said, ”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 Jan. 9, 2023, in line with cashless policy introduced in 2012.
”Based on information available to CBN, the time for full implementation of the policy with the proposed limit on cash withdrawals per week is now.
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”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 had now expanded into multiple electronic platforms as well as a geometrical increase in the number of agents from 88,000 to 1.4 million.’’
But she added that the CBN was adaptable and would be willing to take into account views as long as they wouldn’t make the policy difficult for any group of Nigerians to implement.
After she finished speaking, Senator Uba Sani (APC-Kaduna), the chairman of the committee, motioned and Senators Orji Uzor Kalu (APC-Abia) and Danjuma Goje seconded that the two nominees take a bow and leave (APC-Gombe).
Uba said: ”With a 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.’’