........As South-South Agenda for Tinubu/Shettima Support Groups has condemned the CBN policy

Tope Omogbolagun, Sami Olatunji and Matthew Ochei


The Senate will on Friday grill two deputy governors of the Central Bank of Nigeria over the cash withdrawal limit policy unveiled by the apex bank on Tuesday.

The red chamber planned to seek clarifications on the new directive which restricts over-the-counter cash withdrawal by individuals and organisations to N100,000 and N500,000, respectively, per week.

It also limits cash withdrawals via point-of-sale machines and automated teller machines to N20,000 daily and N100,000 weekly, respectively.

According to a memo signed Tuesday by the CBN’s Director of Banking Supervision, Haruna Mustafa, withdrawals above the thresholds would attract processing fees of five per cent and 10 per cent, respectively, for individuals and corporate entities going forward.

In addition, third-party cheques above N50,000 shall not be eligible for OTC payment while extant limits of N10m on clearing cheques still remain.

The circular also directed banks to load only N200 and lower denominations into their ATMs and restricted withdrawal to N20, 000 per day from ATMs.

The policy which will become effective on January 9, 2023, had generated criticisms but the CBN clarified on Wednesday that PoS operators could apply for waivers.

Deliberating on the policy on the floor of the Senate on Wednesday, senators said there was a need to debate the policy on the floor of the red chamber.

However, the Senate President, Ahmad Lawan, directed the Senate Committee on Banking to grill the two re-appointed deputy governors of the CBN, Aisha Ahmad, and Edward Adamu, who will be screened on Friday, on the new cash withdrawal policy.


Senators raise motion

The resolution on the new CBN policy followed a move by Senator Philip Aduda (PDP FCT) to move a motion on the development.

Aduda had sought to rally other senators to deliberate on the policy but the Senate President, Lawan, interrupted him, saying it was too early to debate the circular.

Also, Senator Gabriel Suswam (PDP Benue North-East) supporting his colleague and pushed that the motion should be allowed to fly considering the innocent Nigerians that would be affected by the CBN policy.

Addressing Lawan, he said, “I think you should have allowed us to discuss this motion for the sake of Nigerians.”

But Lawan, who appeared not to favour the move, stopped Aduda and Suswam, saying, “No, distinguished (Senators), there is a misunderstanding here. I told you what my personal opinion is. My personal opinion is that this weekend is off. Maybe but we have an opportunity; the Committee on Banking will be screening two deputy governors of the CBN. This is one major issue they should raise with them.

“As good as the cashless policy may be, it shouldn’t be jumped at, at once. The way the CBN is going about the policy, many Nigerians would be cut off and that won’t be accepted. Motion on the policy will be thoroughly debated in the Senate on Tuesday next week after adequate information has been gotten on it.”

Lawan noted that the newly re-appointed deputy CBN governors would be screened between Thursday and Monday so that by Tuesday, they would have been equipped with enough information to raise a motion in support or shoot down the policy.

He said, “Before Tuesday next week, our committee on Banking, Insurance and other Financial Institutions mandated to screen the re – appointed deputy governors of the Central Bank should focus its questions on the planned policy.

“The CBN deputy governors must be thoroughly grilled on the policy after which extensive debate on it will be made by Senators on Tuesday next week.”

However, the lawmaker representing Kaduna Central and Chairman, Senate Committee on Banking, Insurance and other Financial Instructions, Senator Uba Sani confirmed to The PUNCH that the CBN deputy governors would be screened on Friday.

He said, “We are working on their letters, the letters will be served tomorrow (Today) and the deputy governors of the CBN will be screened on Friday.’’

The President, Major General, Muhammadu Buhari (retd.), had on Tuesday sent for screening and approval the names of the two CBN deputy governors.


PoS operators get waiver

The Director of Corporate Communications of the Central Bank, Mr Osita Nwanisobi, has said that Point-of-Sale operators can take advantage of an exemption to request more cash beyond the new limit.

Speaking with one of our correspondents on the phone, he noted that there is an exemption stipulated in the newly released circular, which PoS operators can take advantage of, based on the requirements and in line with the amount of transactions they process.

He said, “The circular is very clear. If you are doing PoS, it is online and mobile transaction. Whenever cash is involved, then there is a limit. However, there is an exemption in the circular, which PoS operators can apply for based on the volume of their transactions.”

Following the new directive, the National President, Association of Mobile Money and Bank Agents of Nigeria, Victor Olojo, had said that PoS operators would protest against the policy which he said was targeted at killing their livelihood.

Olojo argued that the cash limit would harm their business as it translated to shutting down PoS terminals.

However, there was an exemption that allows up to N5m for individuals and N10m for corporate organisations once a month but with certain requirements.

To enjoy the exemption, banks were required to obtain some information from the drawee and upload the same on the CBN portal created for the purpose.

The requirements include a valid means of identification such as the National Identity Card, international passport, driving licence; Bank Verification Number of the payee; notarised customer declaration of the purpose of the cash withdrawal; senior management approval for the withdrawal by the managing director of the drawee where applicable and approval in writing by the MD/CEO of the bank authorising the withdrawal.

According to the guidelines, monthly returns on cash withdrawal transactions above the specified limits will be rendered to the banking supervision department.

Also, compliance with extant anti-money laundering and countering the financing of terrorism regulations relating to Know Your Customer, ongoing customer due diligence and suspicious transaction reporting are required in all circumstances.

On the likely effect of the policy on the people in the rural areas, who regularly deal with cash, Nwanisobi said, “The policy only states that you cannot go beyond a particular limit. It doesn’t stop anybody from using cash. So, those in the rural area can still transact with the available cash.”


Group kicks

Meanwhile, the South-South Agenda for Tinubu/Shettima Support Groups has condemned the CBN policy in strong terms, describing it as a plot to pitch the poor masses against the President.

In a statement on Wednesday signed by the National Coordinator of the group, Mr. Bitrus Oliver, it argued that Nigeria is one of the top three unbanked countries in the world with more than 60m of its adult population still unbanked.

The group stated, “This policy will clearly undermine the efforts of the Federal Government in sustaining micro and small scale enterprises across the country as it will limit the fund in circulation due to the non-availability of cash and may totally asphyxiate small and struggling businesses before the policy is stabilized.

“When people find it difficult to withdraw enough money they need from the bank and are repeatedly unable to complete transactions due to lack of funds, there may be public outrage and a massive backlash on the president for allowing the policy.

“The new withdrawal policy will be able to put money politics in check within the (election) period, it also has the capacity to wreck many local economies across the country due to the paucity of cash it will create.”

Oliver argued that in almost all the rural markets across the country, 90 per cent of transactions are done by cash and not by mobile transfer, noting that pegging ATM withdrawal to N20,000 would stall many transactions and may even trigger chaos in the commercial sector.

https://punchng.com/cash-withdrawal-limits-senate-grills-cbn-chiefs-tomorrow/?amp

most people won't like this...


people like hushpuppi .. dbanj... teanewbu...what is the name of that man that was caught with over 1milli cash also from that region


dedicating this FTC to Uzomacharles .. please someone reachout to him... he a student of futo in his second year.. he needs help
mentally
physically
spiritually
and most importantly he needs help financially

thank you

100k per week is too small it should be raised to 500k per week and 100k per day for individual but emefiele and buhari are too wicked to care about the masses that will suffer the consequences of their useless policy

Give me more shooters, I need it
Give me more plates, know we greedy
We catchin' bodies, we fiendin'
They catchin' bodies, they dreamin'
And I just caught a body with your bit¢h, she ate semen

Ruggedniggaone:
100k per week is too small it should be raised to 500k per week and 100k per day for individual but emefiele and buhari are too wicked to care about the masses that will suffer the consequences of their useless policy

How is limit in cash withdrawal making the masses suffer.

There is no limit on the transaction you can do online

Btw, Is using online alternatives for transactions suffering.

You people have been demoralise to thrive on negativity.

When the policies affects them, they will rise to grill, sanction, fry and roast the initiators of such policies.

nice

I love the process they have worked to lay.
First, Re-designing the Naira note, it doesn't make sense but I now understand the reason why. The actual motive was not to change the note but to end the existence of the current one so as to alleviate a significant amount of corruption.
Secondly, reduce the incessant use of cash transaction. Limiting daily expenses of cash exchange.

Better! They better do something about it because I don't understand the rational behind this 20k withdrawal per day or per week.

What IF I wan buy something of 120k and the seller demanded for cash?

"A withdrawal limit different from.... Bala Blu, Bulaba Blu"

Sponsored by Emi'lokan

I don remove hand from anything when concern Nigeria. If Obi is not elected as the next president, I will move my immediate family to Cana .

They should not attend. Since it's about to affect them, they want to get involved.

I really don't � that this should be an issue that would have immediate attention by the Senate unless they are directly affected. Other issues that needs prompt attention are not being looked at, but this one immediately took the center stage.

Weldon senators. This one don choke

Confusion
Make our own MANAGRILLBBQ help them out in the GRILLING.


2ND PIC: EMIEFIELE on Seat in SENATE

3rd pice: if e lose.

dre11:
........As South-South Agenda for Tinubu/Shettima Support Groups has condemned the CBN policy




https://punchng.com/cash-withdrawal-limits-senate-grills-cbn-chiefs-tomorrow/?amp

Xnxn

It has it's merits & drawbacks. The thing is that those looters won't mind paying the 5% to withdraw stolen funds to hoard it. And at the end, it will be the small business owners that will face more of the music. In narrowing the chances of corruption, there should be a need to reduce the use of paper and pen in the day to day running of the federal & states affairs.

Let's go cashless, no going back...

Let's see where they will pack the Naira too...

thebosstrevor1:


How is limit in cash withdrawal making the masses suffer.

There is no limit on the transaction you can do online

Btw, Is using online alternatives for transactions suffering.

You people have been demoralise to thrive on negativity.

40 percent of Naija population are unbanked....
Affected folks are masses ...
Most agro produces are from rural areas..
Trading is done on cash basis with middlemen...
that brings goods to urban centers...
U should expect increase in prices of food items ASAP...
Cos those withdrawal charges will be borne
by masses..

Way to go. Some of these policies that can shrink the economic activities of this country should re reversed immediately after the deadline has squeezed thieves out

opera1:
Better! They better do something about it because I don't understand the rational behind this 20k withdrawal per day or per week.

What IF I wan buy something of 120k and the seller demanded for cash?

The seller is not serious. Look for a seller that receives transfer. The one that wants cash will be forced to receive transfer by force or quit.

Cashless policies won't happen over night........CBN policies r always affecting the common man and not d real elite embezzling that emefiele himself is part of

Only thieves will not support this initiative

Bubu is'nt aware of d limits

Cashless policy will end looting

Every single cash can be traced


Anyone against it is benefiting from the fraud

Ruggedniggaone:
100k per week is too small it should be raised to 500k per week and 100k per day for individual but emefiele and buhari are too wicked to care about the masses that will suffer the consequences of their useless policy

Oh, MASSES now deal in CASH of more than N100,000 per week or about N5m in a year.

CBN, Buhari, please stand your ground. This is one the best policies of this regime.