CBN Cash Withdrawal Limit: Senate Okays Policy, Seeks Upward Review of Daily Threshold 

Sunday Aborisade in Abuja

The Senate Wednesday approved the latest Policy of the Central Bank of Nigeria which limited the daily cash withdrawal for individuals at N20, 000 while corporate organisations could only withdraw a maximum cash of N100,000, a day.

The red chamber took the decision after considering the report of its Committee on Banking Insurance And Other Financial Institutions chaired by Senator Uba Sani. 

Sani said the report of his panel was based on the interaction the members had with the nominees.

Part of the report read, “That the Central Bank of Nigeria should considerably adjust the withdrawal limits in response to public outcry on the policy. 

“That the Committee should continue to embark on aggressive oversight of the Bank on its commitment to flexible adjustment of the withdrawal limit and periodically report outcome to the Senate. 

“That the Senate should support the Bank in the continuous implementation of transformational payments and financial industry initiatives in line with its mandate in accordance with the CBN Act.”

The Senate in plenary approved all the recommendations of the panel after some senators had expressed concern that the current arrangement if not reviewed, might negatively affect some sectors of the economy.

The red Chamber 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 .

It supported the CBN in  continuous implementation of transformational payments and financial industry initiatives .

Some of the senators urged the CBN to reconsider the timing of the policy to avoid a possible revolt from a segment of the society. 

For instance , Senator Ajibola Basiru ( APC Osun Central), said  the proposed threshold of N100,000 and N500, 000 withdrawal per week for individuals and corporate bodies respectively, should be reviewed upward. 

He said, “Laws are made for people and not people made or created for law,” adding that. If CBN is acting under section 2(d) and 47 of its extant Act it should favour all segment of the society. 

Also, Senator Adamu Aliero ( PDP Kebbi Central ) , in his own contribution, said  the policy should also be in favour of those in the informal sector. 

For Senator Adamu Bulkachuwa ( PDP Bauchi North), the proposed policy , if not suspended , may affect the rural dwellers .

The Chief Whip of the Senate who is also the Chairman of the Committee, Senator Orji Uzor Kalu ( APC Abia North ) , said, “The N100, 000 per week for individuals and N500,000 per week for corporate bodies , are  too small . 

“The N500, 000 per day for individuals l and N3m per day for corporate bodies being implemented in Abia , Lagos , Ogun , Rivers , FCT, among  others, should be sustained across the country for now. “

However, Senators Yusuf A Yusuf ( APC Taraba Central) , Degi  Eremienyo ( APC Bayelsa East ) Francis Alimikhena ( PDP Edo  North) , supported the policy without any reservations in their separate contributions.