CBN tells Senate that cashless policy is not new.

The Central Bank of Nigeria (CBN) defended its policy on cash withdrawal limits on Friday, saying it was not new and was not targeted at anyone.

The apex bank team informed the Senate Committee on Banking, Insurance, and Other Financial Institutions of their position, stating that the policy of N100,000 and N500,000 withdrawal limits is in the best interests of the country.

In the midst of the controversy surrounding the policy, Mrs Aishat Ahmad, Deputy Governor of the Central Bank of Nigeria on Financial System Stability, recalled that the policy was similarly introduced in 2012 during former President Goodluck Jonathan’s administration and expanded to Abuja and six other states in 2013.

Mrs. Ahmad and Mr. Edward Lametek appeared before the Senate Committee on Banking, Insurance, and Other Financial Institutions on Friday in Abuja for consideration to be reappointed as Deputy Governors of the Central Bank.

She stated that a cashless policy pilot scheme was implemented in Lagos, Abuja, and six other states in 2012.

She noted that, while the CBN has not fully implemented the policy since then, its introduction has resulted in significant changes in the banking and payment systems.

“Distinguished Chairman of this committee and members, I am grateful for the opportunity to present on the planned N100,000 withdrawal limit for individuals and N500,000 for corporate bodies per week, beginning on January 9, 2023, in accordance with the cashless policy implemented in 2012.”

“According to information available to the CBN, the time has come to fully implement the policy, which includes a proposed weekly limit on cash withdrawals.”

“The necessary infrastructure for policy implementation has been put in place, in terms of financial access point system, mobile money, and e-naira, so there was no need for concern.”

“Previously, banking transactions in Nigeria were limited to Bank Branches as the sole means, which has now expanded into multiple electronic platforms as well as a geometrical increase in the number of agents from 88,000 to 1.4 million,” she explained.