Cash withdrawal limit aimed to strengthen economy – Emefiele

• Says over N500bn old notes withdrawn from circulation

By Egena Sunday Ode 

Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, has said that the recently introduced policy on cash withdrawal limit was meant to strengthen the nation’s economy, assuring that the apex bank will not be rigid on its implementation.

The explanation from the CBN boss came amid criticisms of the new policy by lawmakers, business experts and some stakeholders, who have expressed the opinion that the cash limit decision will have harmful effects on small businesses and Nigerians at large.

The CBN had on Tuesday unveiled a revised cash withdrawal limit with a maximum of N100,000 cash withdrawal per week for individuals and N500,000 cash per week for companies.

The Senate has, however, faulted.the  apex bank over the implications and timing of the policy by the Central bank, arguing that it might worsen the tight economic environment, while stakeholders are worried about the possibility of implementing hitch-free cash withdrawal limits in communities with ‘blind spots or poor network connectivity.’

Speaking to newsmen after a meeting with President Muhammadu Buhari in Daura, Katisna State, Emefiele, however, explained that more and more countries that are embracing digitization had gone cashless and that the policy was not targeted at anybody, 

Emefiele who said he was in Daura to greet Mr President and brief him about what is happening in central bank and the economy, said that President Buhari was very happy “and said we should carry on our work, no need to fear, no need to bother about anybody.”

He said the policy is meant for the good and development of the Nigerian economy, adding that “we can only continue to appeal to Nigerians to please see this policy the way we have presented it.”

Responding to the objection by the senate, the apex bank boss said, “Well, the senate of the Federal Republic is National Assembly, they are legislative arm of the government and from time to time we brief them about what is happening and about our policies and I’m aware that they have asked for some briefings and we will brief them. 

“But I think it’s important for me to say that the cashless policy started in 2012. But almost three to four occasions we had to step down the policy because we felt that there is a need for us to prepare ourselves and deepened our payment system infrastructure in Nigeria. 

“Between 2012 and now 2022, almost about 10 years, we believe that a lot of electronic channels have been put in place that will aid people in conducting banking and financial service transactions in Nigeria. 

“We heard about people talk about some of the people in the rural areas and the truth is that even online banking, as I was coming out to Daura, I saw a kiosk that has super agent today. It’s because of the way we felt that there was a need for us to deepen the payment system infrastructure. We have 1.4 million super agents that are all over different parts of the country, all local governments, and all villages in this country. 

“And I have told my colleagues, some of their names are already on the CBN website and we will publish all the names of all the super agents. And having super agent which is different from the banks which is different from microfinance banks, which is different from other financial institutions. Having 1.4 million of them is as good as having 1.4 million banking points where people can conduct services. 

“ We think, Nigeria as a big country, the biggest economy in Africa that we need to leapfrog into the cashless economy. We cannot continue to allow a situation where over 85 per cent of the cash that is in circulation is outside the bank. More and more countries that are embracing digitization have gone into cashless. 

“I said it at different fora, that this is not targeted at anybody, it’s just meant for the good and development of the Nigerian economy and we can only continue to appeal to Nigerians to please see this policy the way we have presented it. 

“We will be reviewing from time to time how this is working because I cannot say that we are going to be rigid. But it is not to say that we will reverse, it is not to say that we will change the timing, but whether it is about tricking some amount to be a little bit higher or a little bit lower, and all the rest of them. We will do so because we are humans, we want to make sure that we are make life good for our people. We do not want to make life difficult for them. So there is no need for anybody to worry, the central bank is monitoring what is happening and I can assure everyone that we are up and alive to our responsibilities and we will do what is right for Nigeria and Nigerians.”

“I can only just assured you that it will go round, let us just be calm, luckily the old currency continued to be legal tender till January 31, 2023. So, I want to crack a joke, both the painted (new notes) and unpainted (old notes) will operate concurrently as a legal tender. But by January 31, the unpainted one will not be useful you again, so please take it to your bank as quickly as possible,” he added.

On the amount of the old notes the central bank has been able to get back to the vaults, he said, “we have taken more than have a trillion and in the bank we also have close to have a trillion. But what we have done in the central bank is to move more people from different departments into currency processing so that they can process this cash as quickly as possible and from there, banks can now move what they have with them.”

He said that there were so many things happening concerning issues bothering on the currency, noting that only yesterday (Wednesday), the new currency notes had reached the commercial banks which will begin to distribute them to their customers.