The Nigerian Senate has called on the Central Bank of Nigeria, CBN, to considerably adjust the proposed N100, 000 per week for individual and N500, 000 per week for Corporate bodies limit 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.
The upper chamber also resolved to support the CBN in continuous implementation of transformational payments and financial industry initiatives .
The resolution of the Senate followed the adoption of the recommendation of the senate committee on Banking , Insurance and other Financial Institutions report Presented on the floor by its chairman senator Uba Sani. The report generated heated debate by Senators on the proposed policy.
The Chairman of the Committee, Senator Uba Sani (APC Kaduna Central), in the report argued that the planned Cash Withdrawal Limits , is for transformation of the Nation’s economy.
While many Senators kicked against the timing of the policy , warning that it may lead to mass revolt in the rural areas across the country others ask why its coming at a time the country is planning for a crucial general election.
Senator Adamu Bulkachuwa (PDP Bauchi North) in his contribution says the new policy will not tackle the issue of insecurity as speculated , arguing that it will greatly affect local farmers and small businesses who earn daily.
Also read: More reactions trail CBN’s new policy on cash withdrawal
He says as a farmer, he pays 100 persons working on his farm every day and these set of persons do not have bank accounts nor POS, lamenting that despite appeals to banks to reopen the UBA bank shut for over six years ago yielded no results in his constituency.
He further stated that if the CBN attempt tasking the locals in his local government they would revolt against it and its resultant effect will not be good for the polity.
He said the report and recommendations put forward by the committee on Banking did not make sense to both the public and senators.
Senator Yusuf Yusuf, (APC Taraba Central) also contributing says half of the money in circulation is not accounted for by the banks, which poses a high security threat to the country.
Senator yusuf recommends that the highest denomination to be in circulation should be one hundred naira , adding that , the policy if well implemented will be the only solution to reduce circulation of foreign currency in the country .
Also reacting senator bashiru Ajibola, (APC, Osun Central) says the policy is unrealistic, he added that
“above N100 ,000” withdrawal comes with a processing fee of 5% and it is not acceptable
He recommends that the threshold should be N500,000, weekly and N100,000 daily to be in line with what is realistic for society.
Also reacting senator Orji kalu(APC Abia North) who is the vice chairman of the Senate committee on Banking , asked the CBN to reconsider its stance and put the
Daily withdrawal to be N500,000 per day and three million per day for corporate bodies.
Senator Adamu Aliero ( PDP Kebbi Central ) , in his own contribution , says 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.
He added that the proposed CBN policy does not capture the informal sector which is detrimental to the livelihood of rural dwellers who are not into E – banking.
Editor : Ena Agbanoma
