Heated debate among Senators took place in plenary last week Wednesday on planned Cash Withdrawal Limits by the Central Bank of Nigeria (CBN) which made them to call for upward review. TAIYE ODEWALE reports
CBN’s planned policy
On Monday, December 5, 2022, the Central Bank of Nigeria (CBN), released a circular on new cash withdrawal limits in line with its cashless policy mandate and implementation which started in Lagos on April 1st, 2012 and extended to the Federal Capital Territory (FCT, Abuja), Abia, Anambra, Kano, Ogun and Rivers states in September 2019, on the template of N500,000 withdrawal per day for individuals and N3million per day for corporate bodies.
But as stated in the new circular issued on December 5, 2022 in Abuja, the template for implementation of the cashless policy would be withdrawal limits of N100, 000 per week for Individuals and N500,000 for corporate bodies or N20,000 per day for Individuals and N100,000 per day for corporate bodies across the 36 states of the federation and the Federal Capital Territory with effect from Monday, January 9, 2023.
The apex bank in the circular stated amongst others, that the planned new cash withdrawal policy is being introduced in compliance with best practices across the globe.
The policy, it states, is in line with the quest to adopt international best practices and international conventions, especially, in view of recent reputational damage with some Nigerians perpetuating advance fee fraud (419).
Required infrastructure for implementation of the policy, according to the Apex bank, were already on ground across the 774 local government councils in the country.
It added that the planned policy is well within its mandate as provided for by sections 2d and 47 of the CBN Act 2007 which empowers it to promote sound and stable financial system as well as credible efficient payment system.
Senate ‘s apprehension
Forty eight hours after the announcement of the planned policy, precisely on Wednesday, December 7, 2022, the need for debate on the policy was moved in the Senate by the Minority Leader, Senator Philip Tanimu Aduda (PDP FCT).
Senator Aduda in the move, sought urgent intervention of the Senate on the policy which, according to him, would adversely affect the rural dwellers.
But the Senate President, Ahmad Lawan, in his ruling, posited that since the Senate through its Committee on Banking, Insurance and other Financial Institutions, had screening session to carry out on the re – appointed CBN Deputy Governors, the merits or otherwise of the policy, should be the focal point of the drilling.
Expectedly, at the screening session carried out on the re – appointed CBN Deputy Governors penultimate Friday by Senator Uba Sani led Committee on Banking, Insurance and other Financial Institutions, explanations on the cashless policy, was the main question thrown at them, particularly, the Deputy Governor on Financial System Stability, Mrs Aishat Ahmad, who said the policy was new but entering final stage of implementation.
She said: “Distinguished Chairman of this committee and members, I’m happy for the opportunity given to make presentations on planned N100,000 withdrawal limit for individuals and N500,000 for corporate bodies per week, beginning from 9th January, 2023, in line with cashless policy introduced in 2012.
“Based on information available to CBN, the time for full implementation of the policy with proposed limit on cash withdrawals per week is now.
“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 was limited to Bank Branches alone as the only means, which has now expanded into multiple electronic platforms as well as geometrical increase in the number of agents from 88,000 to 1.4million”.
The heated debate in Senate
In line with parliamentary procedures, Senator Uba Sani after presentation of report on screening of the re – appointed CBN Deputy Governors and secured their confirmation by the Senate on Wednesday last week, also presented report on the planned cashless policy to the Senate for informed action.
But as persuasive as his report was, as regards the desirability and necessity of the policy, many of the Senators who made contributions on the debate, kicked against it on alleged wrong timing.
First to kick against it, was Senator Ajibola Basiru (APC Osun Central) , who said the proposed threshold of N100,000 and N500,000 withdrawal per week for individuals and corporate bodies respectively, was unrealistic.
“Laws are made for people and not people made or created for law. If CBN is acting under section 2(d) and 47 of its extant Act to make life difficult for Nigerians through a policy, as representatives of the people, we need to intervene.
“Such intervention from us is to make CBN realise that the proposed cash withdrawal limits policy is unrealistic and very injurious and detrimental to the well-being of rural dwellers, many of whom are our constituents.
“Report of this committee recommending the policy to us and by extension, to Nigerians through suggestion of flexibility in implementation, is vague, nebulous and means nothing”, he said.
Senator Adamu Aliero (PDP Kebbi Central), in his own contribution, said the picture painted by the committee in its report on the proposed CBN policy, is nothing but an ideal picture of what economy should be, which is far cry from what economy is, in reality as far as Nigeria is concerned.
“The proposed CBN policy does not capture the informal sector and very detrimental to the livelihood of rural dwellers who are not into e – banking.
“Public outcry against the policy is too much, requiring serious caution as far as implementation is concerned because Nigerian economy is predominantly rural”, he said.
Senator Adamu Bulkachuwa (PDP Bauchi North), in his contribution, warned that the proposed policy, if not suspended, may trigger revolt from rural dwellers.
He said recommendations made by the Senate Committee on Banking on the policy which were later adopted as resolutions, made no sense to him.
“Senate committee recommendations on the proposed CBN policy, is nothing but trying to put wool in the eyes of Nigerians”, he said.
Even Senator Orji Uzor Kalu (APC Abia North), who as a member of the Committee, signed the adopted report on the proposed policy, kicked against it in his contribution.
He said: N100, 000 per week for individuals and N500,000 per week for corporate bodies, were too small.
“The N500,000 per day for individuals and N3million per day for corporate bodies being implemented in Abia, Lagos, Ogun, Rivers, FCT etc, should be sustained across the country for now “.
Other Senators who kicked against implementation of the policy as planned from January 9, 2023, were Biodun Olujimi ( PDP Ekiti South), Chukwuka Utazi (PDP Enugu North), Stella Oduah (PDP Anambra North ), Ibrahim Hassan Hadeija (APC Jigawa North East), etc.
But Senators Yusuf A Yusuf (APC Taraba Central), Degi Eremienyo (APC Bayelsa East) Francis Alimikhena (PDP Edo North), supported it in their separate contributions.
Senate’s resolutions
Consequently, after the heated debate, the Senate in its resolutions, called on the Central Bank of Nigeria (CBN), to make upward adjustment of the proposed cash withdrawal of N100,000 per week for individual and N500,000 per week for Corporate bodies in response to public outcry.
It also directed its Committee on Banking, Insurance and other Financial Institutions, to embark on aggressive oversight of CBN on its commitment to flexible adjustment of the withdrawal limit and periodically report outcome to the Senate.
It, however, supported CBN in continuous implementation of transformational payments and financial industry initiatives.
With 20 days to commencement of implementation of the policy, despite oppositions to it, the CBN seems to as empowered by its extant Act, not to be backing down in anyway.
But whether the implementation would be successful or not, is in the womb of time.
