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Tag: Withdrawal Limits

  • INVESTIGATION: Scarcity of new Naira notes causes hardship for Nigerians

    INVESTIGATION: Scarcity of new Naira notes causes hardship for Nigerians

    The newly introduced naira notes and revised cash withdrawal limits announced by the Central Bank of Nigeria (CBN) to curb crime, inflation and vote buying during elections, have left many citizens stranded and frustrated, TheNewsGuru.com (TNG) investigation has revealed.

    More than one month after the official launch of the new designs, many Nigerians in both urban and rural areas, have been unable to access the new notes as countdown to the January 31st deadline for the mop-up of the old N1000, N500 and N200 banknotes approaches.

    The apex bank has insisted that the highest denominations of the naira in old banknotes will cease to be legal tenders by the expiration of the deadline and many Nigerians eager to beat this time limit, have flocked to commercial banks to deposit their old cash in exchange for the new banknotes.

    Scarcity of Redesigned Banknotes

    Contrary to expectations, commercial banks have continued to dispense the old banknotes.

    A disappointed Nigerian Charity Agber, claimed that many Automatic Teller Machines (ATMs) around her area in Abuja failed to dispense cash and when she went into the banking hall to make withdrawals over the counter, she was paid with old banknotes.

    “I needed to withdraw yesterday and there were no ATMs dispensing cash around my area. So, I had to go into the banking hall and the queue was something else. When I eventually got paid, it was still with the old notes,” she said.

    Another bank customer Tayo Adewunmi said: “The deadline is affecting the common man because the new Naira notes are not in circulation as expected. They are being paid with old ones like what a bank I visited on Monday did.”

    In the same vein, Omoruyi Emma added: “Frustration is taking its toll on the citizens, all over Abuja almost all ATM had no money to dispense and if you go the bank, they have only old notes and the deadline is so close how does one still withdraw old notes at this time? Whom did we offend in this country?”

    A staff with one of the leading commercial banks told our reporter that they were still dispensing old notes because they did not have new notes to dispense to customers.

    Some business outfits have already stopped receiving payments made using the old banknotes, a move that can have effects on the Nigerian economy.

    Revised Withdrawal limit

    In addition to the challenge of scarcity of the new banknotes, individuals are only able to withdraw a maximum amount of N100, 000 per week, while corporate organisations have a limit of N500, 000 per week.

    As a result, some banks have now restricted the amount individuals can withdraw daily to N20, 000.

    For example, the Guaranty Trust Bank in Bodija Ibadan the Oyo state capital allows customers to withdraw a maximum of N40,000 Daily, while the Access bank in the University College Hospital (UCH) is allowing a daily withdrawal of not more than N20, 000.

    The Director of Banking Supervision in the CBN, Haruna Mustafa, said that withdrawals above the set weekly limits of N100, 000 and N500, 000 for individuals and corporate organisations will attract a processing fee of five per cent and 10 per cent respectively.

    Mustafa explained that only denominations of N200 and below are expected to be loaded into ATMs and the maximum cash withdrawal via Point of Sales Operators (POS) is now N20, 000 daily.

    “In compelling circumstances, not exceeding once a month, where cash withdrawals above the prescribed limits is required for legitimate purposes, such cash withdrawals shall not exceed N5million and N10million for individuals and corporate organisations respectively,” he stressed.

    CBN’s Efforts Towards Financial Inclusion

    The apex bank has also launched a cash swap programme in partnership with super agents and deposit money institutions (DMBs), which it says will promote financial inclusion, as it particularly targets citizens in rural areas without a bank account.

    The programe which became effective on 23rd January will enable citizens in rural areas or those with limited access to formal financial services to exchange the old naira notes for the redesigned banknotes.

    Through the cash swap programme, the old N1000, N500 and N200 notes can be exchanged for the redesigned notes or the existing lower denominations from N100 and below which remain legal tender.

    Meanwhile, the House of Representatives is set to invite the CBN over the alleged scarcity of new naira notes and has asked for an extension of the deadline for swapping the old notes with new ones by six months.

    However, it remains to be seen if the apex bank would bow to pressure and extend the deadline for the return of old bank notes.

  • Nigerians don’t withdraw more than N.5m weekly – CBN

    Nigerians don’t withdraw more than N.5m weekly – CBN

    The Central Bank of Nigeria (CBN) has disclosed that Nigerians do not withdraw more than N500,000.00 on a weekly basis, stressing that 94% of all cash transactions fall below the N500,000.00 new weekly cash withdrawal limit for individuals.

    TheNewsGuru.com (TNG) reports Mr Godwin Emefiele, CBN Governor, represented by the CBN Deputy Governor in charge of Financial Systems Stability, Mrs Aisha Ahmad made the disclosure at a House of Representatives briefing on Thursday.

    The apex bank also disclosed that 82 per cent of corporate transactions are below the new limit, noting that the adjustments to the revised cash withdrawal limits have sufficiently addressed fears over possible negative implications of the limits.

    The CBN also disclosed that 500 million pieces of the redesigned naira notes were ordered from the Nigerian Security Printing and Minting Company Limited while also disclosing that the lower denominations of Naira were not redesigned because they were the ones mainly used in the rural areas of the country.

    Emefiele explained that the new cashless policy was not based on any political consideration as the CBN is an independent institution, whose decisions are based on research, data and the efforts of many teams working together across its different directorates.

    Justifying the policy and the expected gains, he said the cashless policy will reduce the cost of processing cash, cost of destroying mutilated cash, cost of printing new notes as well as reduce kidnapping and other forms of criminalities associated with cash movement.

    On the issue of fake currency, he said, “We are doing a lot of sensitization because we believe that sensitization can’t just be the newspapers, the television and radio. We need to go into the rural areas, the markets and use people in the communities to actually drive home the message. It takes time but over time it improves”.

    The CBN Governor disclosed that electronic money transfers in the country as at October 2022 stood at N300 trillion from N3 trillion in 2012, when the cashless policy was introduced, representing about 7, 000 per cent increase.

    He also said in 2012 when the pilot scheme was launched in Lagos, the country had N48 billion in POS transactions, adding that this has increased to about N6 trillion today

    He said the policy pronouncement on December 5 was a continuation of the cashless policy started 10 years ago and was in recognition of the positive changes recorded in the financial and payment system since it first launched.

    He said, “Today, we have a very robust payment system that includes bank branches, branches of micro-finance banks, POS machines, ATM machines, agent banking, E-Naira and many other options.

    “To be specific, between the bank and the micro-finance banks, we have 6,500 locations, 900,000 POS terminals, 14,000 ATMs across the country and 1.4 million agents nationwide and every single local government in Nigeria has agent represented. We also have a proliferation of electronic transactions. Just by way of quick example, in 2012, we had N48 billion in POS transactions. Today, we have N6 trillion in POS transactions.

    “On electronic transfers, we had N3 trillion in 2012. Today, we have 300 trillion as at October, 2022. That’s a 7,000 percent increase. We have also seen an improvement in financial inclusion to 54.1 per cent and lastly, perhaps, more importantly, we have seen the evolution of the Nigerian payment system on the global stage.

    “Nigeria is judged 6th in the world for instant real payment and we are only behind countries like India, China, Thailand, Brazil and South Korea. We are the only African country in the top 10 and this has been as a result of some of the initiatives that have gone on. Also, electronic payment and real time data payments have been estimated to contribute about 0.67 percent to our GDP.

    “Going to the cash withdrawal limit that was issued in response to the feedback from Nigerians in response to the comments made by this revered chamber, we took those feedback on board. CBN mentioned that we will be flexible in the implementation of this policy in response to the stakeholders’ sentiments.

    “We have since reviewed the limit significantly from N100,000 that we had per week to N500,000 per week for individuals; from N500,000 per week for corporate to N5 million per week for corporate. We have also amended the processing from 5.0 and 10 per cent downward to 3.0 and 5.0 per cent.

    “We have clarified the strategic importance of agents as important participants in the financial system because they play a key role in certain underserved segments in the rural areas and in certain markets areas and they as well would be covered by this new revised rule.

    “Just to roundup, I thought it was important Mr. Speaker, to give some justifications as to why this limits are required now and why it is time for us to get cashless nationwide.

    “I have seen some misconceptions about the fees that we are charging the fees on the entire amount that wants to be withdrawn. No. The fees are to be charged on any withdrawal above the limit.

    “For example, if you are withdrawing N550,000, the fee will be on the N50,000. We also looked at transactions for agents. So, transactions by Nigerians that go to the agent’s location and transactions by the agent’s themselves, the average cash transactions of agents is N2,184,000 which is clearly within the current limit.

    “The average transaction per individual that walks up to an agent is about N18,000. What the policy is trying to do is to encourage more people to come into the formal payment system because of the numerous benefits that accrue. It means opening up our rural areas, the underserved areas to economic opportunity, to payment opportunity and connecting them into the formal system.

    “During the COVID-19 period, we saw the negative impact of physical cash. No one could go anywhere. We couldn’t go to the banks. People couldn’t leave their homes. It was the electronic banking system that protected and served those below the poverty lines that had their livelihood at risk.

    “To clarify some misconceptions, I think it is also important to mention from the data that we have, we have seen the denominations that are not going to be redesigned, the N100, N50, N10 and N5 are predominantly used in the hinterlands and in the rural areas and those are not going to be affected by the policy.

    “Also, you have access to your money. So, there is prohibition in terms of what you want to collect. It is for certain large amount, you need to provide additional information”.

    “We just want to reiterate the overall benefits of the cashless policy. It is to reduce cash processing cost, minting cost, the cost of destroying old notes and cost of moving the physical cash from place to place.

    “All these costs are passed on typically to the banking public. Getting rid of these costs means that charges will be less on that respect. Also this is an opportunity to promote Nigeria’s positive image from money laundering perspective.

    “Even the recently passed anti-money laundering law has limits for cash for a reason because cash is usually the medium by which some of these nefarious activities are done. Suffice it to say that the advantages around protecting people from armed robbery, kidnapping, terrorism financing goes without gainsaying.

    “We will continue to be open, engage, listen as we implement this policy in response to the sentiments of Nigerians. It is not intended to disenfranchise anyone particularly those in vulnerable situations, in the rural areas, markets, it is meant to bring everyone into the significant economic opportunity that comes when you are fully included,” he said.

  • CBN lists benefits of cash withdrawal limits policy

    CBN lists benefits of cash withdrawal limits policy

    The Central Bank of Nigeria (CBN) has identified the reduction of cost of cash management and incidences of crime as some benefits of its policy on cash withdrawal limits.

    TheNewsGuru.com (TNG) reports Aisha Ahmad, CBN Deputy Governor in charge of Financial System Stability disclosed this on Thursday while briefing members of the House of Representatives on the apex bank’s Naira redesign and cashless policies.

    Recall the apex bank in a statement on Dec. 6 indicated that beginning from Jan 9, 2023, the amounts individuals and corporate organisations could withdraw per week would not exceed N100,000 and N500,000, respectively.

    The decision, however, received criticisms from a wide range of stakeholders, including members of the National Assembly, who urged the CBN Governor, Godwin Emefiele, to increase the withdrawal limits.

    The House of Representatives had also invited Emefiele to make further clarifications on the policy to its members.

    Ahmad, who represented the CBN Governor at the briefing, wooed the National Assembly to support CBN in its implementation of transformational payments and financial industry initiatives in line with the bank’s mandate.

    Emefiele, through the Deputy Governor, said the CBN will continue to engage with the National Assembly on matters relating to monetary policy and the economy at large.

    He commended the House of Representatives for its strong advocacy on behalf of the Nigerian people and pledged that new policies will not disenfranchise Nigerians in rural and underserved areas while reinstating commitment to the seamless implementation of the Naira Redesign and cashless policies.

    Ahmad, on behalf of the CBN Governor, pledged the bank’s flexibility to make the necessary adjustments to ensure wider public acceptance of the bank’s policies while insisting it is apolitical and that the Naira redesign and reintroduced cashless policies are not targeted at any group.

    “It is in the public interest to promote an efficient payment system via the cashless policy which helps reduce the punitive costs of cash processing,” Ahmad said, adding that the cashless policy does not prohibit cash transactions above the prescribed limit.

    The CBN stressed that the cashless policy will boost economic opportunities for small businesses and rural communities to facilitate trade and improve livelihoods, thereby boosting economic growth.

    TNG reports the apex bank has, however, announced an upward review of cash withdrawal limits to N500,000 and N5 million for individuals and corporate accounts respectively.

  • Cash withdrawal limit: Reps grill Deputy Governor of CBN

    Cash withdrawal limit: Reps grill Deputy Governor of CBN

    Lawmakers at the House of Representatives during plenary on Thursday grilled Mrs Aisha Ahmad, the Deputy Governor of the Central Bank of Nigeria (CBN) over the apex bank’s policy on cash withdrawal limit.

    TheNewsGuru.com (TNG) reports Ahmad was grilled by the lawmakers who asked questions bothering on the cash policy.

    Rep Femi Gbajabiamila, the Speaker of the House, said the reason why the House should be briefed on such a policy was that the lawmakers represent the people.

    He added that although the Naira redesign may be a good intention, it was necessary for the apex bank to carry the lawmakers along.

    Gbajabiamila queried the CBN rationale for three months’ notice when other apex banks usually gave more than a year’s notice for such policies.

    “How can we rationalise three months’ notice in a cash-full society compared to England where a year’s notice was given,” Gbajabiamila queried.

    In her response, Ahmad stressed that the CBN policy on cash withdrawal limit is not based on politics, contrary to insinuations.

    Ahmad, who represented the CBN Governor, Mr Godwin Emefiele, said the policy was a sequel to critical thinking, research and other considerations.

    She was responding to a question by Rep. Chinedu Obidigwe (APGA-Anambra) who wanted to know if the policy was aimed at favouring the ruling All Progressives Congress(APC) in the 2023 general election.

    Ahmad said that the CBN had ordered N500 million to be printed for circulation, adding that the bank had been flexible by reviewing the policy upward from N100,000 to N500,000 for individuals and from N500,000 to N5 million for corporate bodies.

    She said that the policy was expected to create new jobs in the ICT sector, contrary to insinuations that it would lead to job lost.

    She said the operators of Point on Sales (POS) would not be affected by the policy, adding that that the CBN was aware that the POS had created a means of livelihood for about 4 4 million Nigerians.

  • UPDATE: CBN sends out strong warning over cash withdrawal limits

    UPDATE: CBN sends out strong warning over cash withdrawal limits

    The Central Bank of Nigeria (CBN) on Wednesday announced an upward review of cash withdrawal limits to N500,000 and N5 million for individuals and corporate accounts respectively.

    The apex bank also reviewed downward, the stipulated percentage cost for withdrawals above the stipulated limits.

    This is according to a statement by Haruna Mustapha, CBN’s Director, Banking Supervision.

    According to Mustapha, in compelling circumstances where cash withdrawals above the limits is required, they shall be subject to a processing fee of three per cent and five per cent for individuals and corporate organisations respectively.

    Recall the apex bank, in a statement on Dec. 6, indicated that beginning from Jan 9, 2023, the amounts individuals and corporate organisations could withdraw per week would not exceed N100,000 and N500,000, respectively.

    The decision had, however, received criticisms from a wide range of stakeholders, including members of the National Assembly, who urged the CBN Governor, Godwin Emefiele, to increase the withdrawal limits.

    The House of Representatives had also invited Emefiele to make further clarifications on the policy to its members.

    Mustapha said in spite of the new review, customers should still be encouraged to use alternative channels like Internet banking, mobile banking apps, USSD, POS and eNaira to conduct banking transactions.

    He added that bank and mobile agents were important participants in the financial system, enabling access to financial services in underserved and rural communities.

    “They will continue to perform strategic functions in line with existing regulations governing their activities.

    “The CBN recognises the vital role that cash plays in supporting underserved and rural communities and will ensure an inclusive approach as it implements the transition to a more cashless society,” he said.

    He warned all banks and Other Financial Institutions (OFIs) that aiding and abetting the circumvention of the new policy would attract severe sanctions.

    “The above directives supercede that of Dec. 6, and take effect nationwide from Jan. 9, 2023,” he said.

  • CBN explains new cash withdrawal limits to Senate

    CBN explains new cash withdrawal limits to Senate

    The Central Bank of Nigeria (CBN) on Friday offered an explanation to Senate Committee on Banking, Insurance and other Financial Institutions on the need for the cashless policy, limiting cash withdrawal for individuals to N100,000 and Corporate Bodies to N500,000 per week.

    The policy, as explained by Deputy Governor of CBN on Financial System Stability, Mrs Aishat Ahmad, was introduced in 2012 during former President Goodluck Jonathan‘s administration and extended to Abuja and six other states in 2013.

    The CBN deputy governor made the explanation during her screening and her counterpart on Corporate Services, Edward Lametek Adamu for re-appointment as deputy governors.

    She said the cashless policy, as fully implemented by CBN now, was not new as required steps were taken in 2012 with Lagos State as a pilot scheme and Abuja and six other states in 2013.

    She explained that though full implementation of the policy had not been carried out by CBN since then, saying that the introduction then, brought a lot of transformation in the banking and payment system.

    ”Distinguished Chairman of this committee and members, I ‘m happy for the opportunity given to make presentations on planned N100,000 withdraw 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 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 were limited to Bank Branches alone as the only means which had now expanded into multiple electronic platforms as well as geometrical increase in the number of agents from 88,000 to 1.4 million,” she said.

    She, however, said that the CBN was flexible and would be ready to accommodate opinions that won’t make the policy challenging to any category of Nigerians during implementation.

    After her presentation, the Chairman of the Committee, Sen. Uba Sani ( APC -Kaduna) asked the two nominees to take a bow and go as moved by the Whip of the Senate, Sen. Orji Uzor Kalu (APC-Abia) and seconded by Sen. Danjuma Goje (APC-Gombe).

    Uba said: ” With 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,” he said.

  • Redesigned Naira notes now in banks – CBN Gov, Emefiele

    Redesigned Naira notes now in banks – CBN Gov, Emefiele

    The Governor of the Central Bank of Nigeria (CBN), Mr Godwin Emefiele has said the newly redesigned Naira notes are already in banks and ready for issuance.

    According to multiple tweets on CBN’s official handle, Emefiele made the statement at Daura while on a visit to brief President Muhammadu Buhari on the Naira redesign and the recently reintroduced cashless policy.

    He said that the currency redesign and reintroduced cashless policies were not targeted at anybody but were for the good and development of the Nigerian economy.

    The CBN governor urged Nigerians to embrace the various electronic channels available for banking and financial service transactions in Nigeria.

    “The newly redesigned N200, N500, and N1,000 banknotes are now in banks and ready for issuance to members of the public.

    “The currency redesign and reintroduced cashless policies are not targeted at anybody but are for the good and development of the Nigerian economy.

    ”The CBN deferred the cashless policy severally to prepare and deepen Nigeria’s payments system infrastructure,” he said.

    Emefiele advised Nigerians to take their old N200, N500, and N1,000 banknotes to the banks before January 31, 2023, deadline.

    The apex bank had announced plans to redesign certain denominations of the Naira during its Monetary Policy Committee (MPC) meeting on Oct. 26.

    It, thus, set Dec. 15 as the official start date for the circulation of the new naira notes, which Buhari unveiled on Nov. 23.

    The CBN also, recently, issued a revised cash withdrawal policy, stating that cash withdrawals above N100,000 and N500,000 for individuals and corporate organisations will henceforth attract five per cent and 10 per cent, respectively.

  • Buhari has my backing, cash limits sacrosanct – Emefiele

    Buhari has my backing, cash limits sacrosanct – Emefiele

    Governor of the Central Bank of Nigeria (CBN), Mr Godwin Emefiele has disclosed the cash withdrawal limits policy is sacrosanct and that it has the backing of President Muhammadu Buhari.

    TheNewsGuru.com (TNG) reports Mr Emefiele disclosed this while speaking with State House Correspondents after a meeting with President Buhari in Daura, Katsina State.

    Recall that the CBN on Tuesday unveiled a revised cash withdrawal limit with a maximum of N100,000 cash withdrawal per week for individuals and N500,000 cash per week for companies.

    The limits also affect other payment channels, including Automated Teller Machines (ATM), Point of Sale (PoS) and cheque-based transactions.

    The maximum cash withdrawal through ATM is set at N100,000 per week, subject to a maximum of N20,000 cash withdrawal per day.

    The maximum cash withdrawal through the PoS terminal shall be N20,000 per day. Only denominations of N200 and below shall be loaded into the ATMs.

    He explained that the policy is not new, adding that the fears being expressed of excluding rural people were needless.

    Reacting to dissenting voices from the National Assembly and the public over the cash withdrawal policy, the CBN governor told journalists that the limitation was not intended to hurt anyone.

    While saying possible adjustments to the cash withdrawal limit are not ruled out, the CBN Governor said the January 9 take-off for the policy is sacrosanct.

    Emefiele said: “From time to time we brief them (National Assembly) about what is happening and about our policies.

    “I’m aware that they have asked for some briefings and we will brief them, but I think it’s important for me to say that the cashless policy started in 2012.

    “Almost three to four occasions we have had to step down the policy because we felt that there is a need for us to prepare ourselves and deepen our payment system infrastructure in Nigeria.

    “Between 2012 and now 2022, almost about 10 years, we believe that a lot of electronic channels have been put in place that will aid people in conducting banking and financial service transactions in Nigeria.

    “We heard people talk about some of the people in the rural areas and the truth is that even online banking, as I was coming out to Daura, I saw a kiosk that has super agent today.

    “It’s because of the way we felt that there was a need for us to deepen the payment system infrastructure.

    “We have 1.4 million super agents that are all over different parts of the country, all local governments, and all villages in this country.

    “I have told my colleagues, some of their names are already on the CBN website and we will publish all the names of all the super agents, which is different from the banks, which is different from microfinance banks, which is different from other financial institutions.

    “Having 1.4 million of them is as good as having 1.4 million banking points where people can conduct services and we think, Nigeria as a big country, the biggest economy in Africa, that we need to leapfrog into the cashless economy.

    “We cannot continue to allow a situation where over 85 per cent of the cash that is in circulation is outside the bank. More and more countries that are embracing digitisation have gone cashless.

    “I said it at different fora, that this is not targeted at anybody, it’s just meant for the good and development of the Nigerian economy and we can only continue to appeal to Nigerians to please see this policy the way we have presented it.

    “We will be reviewing from time to time how this is working because I cannot say that we are going to be rigid.

    “But it is not to say that we will reverse it. It is not to say that we will change the timing, but whether it is about tweaking some amount to be a little bit higher or a little bit lower, and all the rest of them (we will do it).

    “We will do so because we are humans, we want to make sure that we make life good for our people. We do not want to make life difficult for them.

    “So, there is no need for anybody to worry, the Central Bank is monitoring what is happening and I can assure everyone that we are up and alive to our responsibilities and we will do what is right for Nigeria and Nigerians.”

  • UPDATE: Cash withdrawal limits too sudden, harsh on Nigerians – Reps tell CBN

    UPDATE: Cash withdrawal limits too sudden, harsh on Nigerians – Reps tell CBN

    The House of Representatives on Thursday asked the Central Bank of Nigeria (CBN) to immediately suspend its latest policy on revised cash withdrawal limits.

    The House also invited the Governor of the CBN, Mr Godwin Emefiele, to appear before lawmakers on Thursday, next week, to answer questions on the series of policies the apex bank had churned out lately.

    The House resolution, which was taken during plenary presided over by the Speaker, Rep. Femi Gbajabiamila, directed that the cash policy should be suspended pending the outcome of Emefiele’s appearance before lawmakers.

    The new cash policy puts total over-the-counter (OTC) withdrawals per week for individuals at N100,000 and N500,000 for corporate organisations.

    However, withdrawals above the limits attract a 5% processing fee for individuals and a 10% fee for organisations.

    The policy also pegs third-party cheque payment over the counter at N50,000, the maximum Automated Teller Machine (ATM)/Point of Sale (PoS) daily withdrawal at N20,000 and total weekly withdrawal at N100,000.

    In addition, banks shall only load denominations of N200 and below into their ATMs.

    The policy further provides that it’s only in “compelling circumstances” for “legitimate purposes” that individuals can withdraw up to N5 million and N10m for corporate organisations “once a month.”

    But, on Thursday, following a motion on urgent national importance moved by Rep. Aliyu Magaji, most lawmakers kicked against the policy saying it was too harsh and sudden for Nigerians, especially the poor majority residing in the rural areas.

    They argued that the majority of small businesses would go under, while inflation might worsen in the long run, altogether defeating any gains expected from the policy.

    However, House Minority Leader, Rep. Ndudi Godwin Elumelu, vehemently opposed the motion, describing the CBN’s policy as the best step taken so far to tackle banditry, kidnapping, and other crimes that involved the payment of ransoms in cash.

    A majority voice vote eventually passed the resolution, asking the CBN to suspend the policy and inviting Emefiele to appear before members on the floor on Thursday, next week.