What CBN Told Senate Panel About Latest Cash Withdrawal Limit

What CBN Told Senate Panel About Latest Cash Withdrawal Limit

The Central Bank of Nigeria (CBN) yesterday successfully persuaded the Senate Committee on Banking, Insurance, and Other Financial Institutions of its latest policy, which limits cash withdrawals for individuals to N100,000 per week and corporate bodies to N500,000 per week.

Mrs. Aishat Ahmad, CBN Deputy Governor on Financial System Stability, provided the clarification when she appeared before the Senate panel for screening, along with her counterpart on Corporate Services, Edward Lametek Adamu.

Both Ahmad and Adamu were recently reappointed by President Muhammadu Buhari, who requested that they be screened and confirmed by the Senate for their second and final term at the apex bank.

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Ahmad, who addressed the Senate panel chaired by Senator Uba Sani (APC Kaduna Central), explained that the policy was first implemented in 2012 during the administration of former President Goodluck Jonathan.

She explained that the CBN’s cashless policy, which is currently being fully implemented, was not new.

She stated that the necessary steps in that direction were taken in 2012, with Lagos State serving as a pilot scheme, and were later extended to Abuja and six other states in 2013.

Ahmad, on the other hand, explained that the CBN has not fully implemented the policy since then.

She stated that its introduction at the time resulted in significant changes to the banking and payment systems.

The Deputy Governor’s Directorate is in charge of ensuring a safe and sound financial system, as well as a credible and efficient payments system, which is a core mandate of the CBN.

Ahmad said, “The cashless policy in Nigeria, was first introduced over 10 years ago in 2012 starting in Lagos State.

“In 2013 the policy was later extended to six additional states and the Federal Capital Territory. Since then, Nigerians have continued to embrace the cashless policy by using electronic channels for their transactions, whilst the Nigerian payments system and telecommunications infrastructure continued to develop.”

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She mentioned the significant increase in the variety and number of financial access points, which has expanded beyond bank and Micro Finance Bank branches to include agents.

She stated that agents could perform an increasing number of transactions such as cash in and cash out, bill payments, and account opening.

Ahmad said, “Under the CBN’s SANEF initiative, agent network had grown to 1.4m agents with agents available in every local government in Nigeria.

“While the growth in the network was not even, there was representation in every state.”

She went on to say that the CBN had continued to license more financial institutions as part of its mandate to develop an efficient payments system, including allowing telecommunications firms to participate in financial services through the Payment Service Bank license, recognizing their extensive technology platforms and wide agent network.

The CBN Deputy Governor reiterated the various financial transaction options available to Nigerians, such as mobile money, USSD, Internet banking, mobile apps, e naira, agents, and mobile POS, among others.

She said, “All of these would ensure that Nigerians would seamlessly adapt to the cashless policy to enable financial inclusion and economic growth.”

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She vowed the Central Bank of Nigeria’s commitment to ensuring that Nigerians in rural areas and the informal sector are not disenfranchised.

She stated that the Bank’s monitoring and implementation of the new cash withdrawal limits would be flexible.

She informed the committee that the cashless policy had previously been amended in response to stakeholder feedback, and that the date of January 9, 2023 was set to allow for such engagement and feedback.

In his remarks, the Chairman of the Committee expressed satisfaction with her presentation and stated that he and his colleagues had been overwhelmingly convinced of the importance of supporting the policy’s success.

Sani 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 be screened again as unanimously agreed by members of the Committee.”

Following a motion moved by Senate Chief Whip Senator Orji Uzor Kalu and seconded by Senator Danjuma Goje, they were asked to take a bow and leave.

On Tuesday next week, the Senate Committee on Banking, Insurance, and Other Financial Institutions is expected to present its report to a full plenary session of the Senate.

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