Opposition To CBN's Cash Withdrawal Limit Swells, House Of Reps Summons Emefiele

Opposition to the Central Bank of Nigeria (CBN)’s New cash withdrawal policy has continued to swell with stakeholders accusing the apex bank of acting against its enabling act.

In fact, the House of Representatives has ordered the Bank to suspend the implementation of the policy slated for January 9, 2023, pending compliance with the provisions of the Act establishing the bank.

Also, the House has summoned Governor, Godwin Emefiele, in accordance with the provisions of the Central Bank Act to brief the Chamber on several policies of the bank in recent times.

Also, Prof. Frank Ozoh

Economist also sees the action of the bank as ‘highly inordinate.’

Ozoh, who spoke on Channels Television’s Politics Today on Thursday also berated CBN for the redesignation of the notes, saying, the limitation placed on withdrawals is not in tune with the realities of the moment.

“The action is anti people and the Governor did not consider the law. Monetary policy should be accommodating as this exercise is tantamount to going back to the ancient barter system of trade, “ he said.

He added that CBN should have considered other variables like minimum liquidity base, as well as demand and cost factors in inflation, adding, “So far CBN has been acting through fiat.“

Metrobusinessnews.com reports that on Tuesday, December 6, 2022, the CBN in a memo to banks said individuals will only be able to withdraw N100,000 per week (from over-the-counter, point-of-sale machines or automated teller machines), while organisations can access N500,000 per week

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The memo signed by the CBN’s Director of Banking Supervision, Haruna Mustafa, directed banks to load only N200 and lower denominations into their ATMs. This means Nigerians will only be able to withdraw N20,000 per day from ATMs when the directive becomes effective.But this has not gone down well with most Nigerians as they have expressed their dissatisfaction over the new limit.

Indeed, there was anger in the House on Thursday as members took turns to condemn the new cash withdrawal policy, saying it will grossly affect small businesses and the economy since most rural communities don’t have access to banks.However, following a point of order raised by Mark Gbillah on the provisions of the Central Bank Act, the House directed the CBN Governor to appear before the House on Thursday, December 15, 2022 to brief the House on why the policy should be allowed to stand.

Gbilla, who also later appeared on Channels Television’s Politics Today on Thursday accused CBN of operating as “if it is a government of its own.”

According to the law maker te law provides that CBN should be addressing the people’s representatives at least twice a year on its monetary activities as well as its plans, but this has never been complied by CBN, adding,” executive has been riding rough.“

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Sponsor of the motion, Magaji Da’u Aliyu, said the new policy by the CBN, which limits daily cash withdrawal to N20,000 daily should not be allowed to stand as it will adversely affect the Nigerian people, especially those running small-scale businesses.

He said 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.