The House of Representatives has criticized the Central Bank of Nigeria’s (CBN) new policy, which among other things places restrictions on cash withdrawals from Deposit Money Banks and other financial institutions.
As a result, the House called Godwin Emefiele, the Governor of the Central Bank of Nigeria, to appear and defend the policy before the legislature, before the lawmakers.
This is based on a motion of urgent public significance made at the House’s plenary on Thursday, December 8. The motion was moved by Aliyu Magaji.
The policy, according to several senators, would harm businesses; as well as Nigerians without access to the banking system and have catastrophic repercussions.
Ndudi Elumelu, the minority leader, asserted that the proposal would reduce crime; noting that money would now be monitored through the banking system. Although the timing could be off, the country would gain more from it, he claimed.
Earlier, the CBN warned that it will not budge from its new policy on cash withdrawal limits; adding that it will punish any person or organization that does so.
The Bank’s Director, Banking Supervision Department, Haruna Bala Mustafa; as well as the Director, Payments System Management Department, Musa Itopa Jimo, disclosed thois. They spoke when they featured on Arise TV programme on Thursday, December 8, 2022.
“Any aiding and abating of this policy will be severely sanctioned and we are very resolute about this. We have the anti-money laundering, we have the terrorism prevention laws; Banks and Other Financial Institutions Act that codifies all the sanctions and penalties that will be imposed,” it warned.
The CBN, in a memo on Tuesday, announced a limit on cash withdrawals made by individuals and organisations with effect from 9 January.
According to the CBN, an over-the-counter cash withdrawals by individuals and corporate entities will not exceed N100,000 and per week N500,000 respectively. It also directed that only N200 and lower denominations be loaded into banks’ ATMs.
It said the maximum cash withdrawal per week via ATM should be N100,000, subject to a maximum of N20,000 cash withdrawal per day.