Reps order CBN to suspend new cash withdrawal policy, summon Emefiele for explanation

The House of Representatives on Thursday asked the Central Bank Governor, Mr. Godwin Emefiele to suspend implementation of the recently announced policy of N100,000 weekly cash withdrawal limits.

Image: Vanguard

The House also summoned Emefiele to appear before it on Thursday next week to explain the impact and significance of the new policy and its compliance with the relevant sections of the CBN act and the 1999 constitution on the monetary policies of the apex bank.

The policy suspension is to last until the outcome of the expected interaction between the House and the CBN governor.

The resolution followed a motion moved under matters of urgent public importance by Hon. Magaji Dau Aliyu.

Except for the minority leader, Hon. Ndudi Elumelu who supported the CBN policy on the ground that it will curb banditry and reduce corruption, many lawmakers vehemently condemned the decision of the CBN.

The move is coming hours after the Senate raised similar concerns over the CBN new directive.

Senate Minority Leader Phillip Aduda raised a point of order during plenary on Wednesday calling for caution and saying that the new policy on cash withdrawals will affect the economy.

Senate President Ahmed Lawan also said there is a need to tread cautiously over the directive, insisting that there should be further deliberations on the policy as it is not something that should be jumped into. 

He thereafter directed the Senate Committee on Banking to discuss the policy during the screening of two nominees submitted for the post of CBN deputy governor.

Consequently, the lawmakers, are scheduled to debate the new CBN policy next Tuesday.

Image:Daily Post

As a measure towards implementing its Naira redesign policy, the CBN announced a revised cash withdrawal policy, directing that going forward, cash withdrawals above N100,000 per week by individuals will attract a 5 percent processing charge while more than N500,000 cash withdrawal per week by corporate organizations attracts a 10 percent fee. 

The CBN limited the maximum cash withdrawal over the counter (OTC) by individuals to N100,000 per week, and corporate organizations to N500,000 per week.

Economy