Experts support review of cash withdrawal limit

Financial experts have backed the review of the Central Bank of Nigeria's (CBN) proposed cash withdrawal limit policy for individuals and corporations.

They said this in separate interviews with the newsmen on Wednesday in Lagos.

The Supreme reports that the experts spoke against the background of the CBN Governor, Mr. Godwin Emefiele's comment that the government would not be rigid in the implementation of the cashless policy.

Emefiele, who spoke with newsmen in Daura, Katsina State, after briefing President Muhammadu Buhari, said the policy would be reviewed from time to time to accommodate the concerns raised by the people.

Dr. Uju Ogubunka, former Executive Secretary, Chartered Institute of Bankers of Nigeria (CIBN), said the apex bank's proposal to review the policy was a welcome development.

"Proposing to review the withdrawal policy is the best because it's not practicable due to today's economic realities."

"What can N20,000 really buy in today's Nigeria considering the steady rise in the inflation rate in recent times?" Ogubunka asked.

He noted that the Federal Government should be more concerned with investing in key infrastructure that would expedite the growth of the cashless policy and deepen financial inclusion.

Ogubunka said that such investments should be made in the hinterlands, where internet penetration is quite weak and there are fewer sophisticated phones to carry out such transactions.

"The CBN needs to continue to educate the people on the importance of having a cashless financial system and its implication to the economy," he said.

Also, a former President of the CIBN, Mr. Okechukwu Unegbu, urged the apex bank not to be rigid in the implementation of the policy.

Unegbu also said the announcement of the redesigned notes was already having a noticeable impact on the nation's currency.

"The redesigned notes policy is quite commendable as the naira is freely losing its value to other currencies.

"We expect the currency to, over time, begin to gain some value, as the apex bank is firmly in control and the level of arbitrage will abate," he said.

He noted that the redesigned notes could be managed in such a way that people engaged in nefarious acts would not find it easy to continue without being apprehended.

The Supreme reports that the apex on December 6 put a limit on cash withdrawals made by individuals and organizations.

The CBN had, in the memo introducing the policy, said third-party cheques above N50,000 would no longer be eligible for OTC payment while existing limits of N10m on clearing cheques still remained.

The circular also directed banks to load only N200 and lower denominations into their ATMs and restricted withdrawals to N20,000 per day from ATMs. Withdrawals from PoS terminals were also limited to N20,000 daily.

The policy, which will become effective on Jan. 9, 2023, has generated criticism.