Amid the flurry of criticism trailing the decision of the Central Bank of Nigeria (CBN) to limit over the counter and ATM cash withdrawal to N100,000 weekly and POS to N20,000 daily, the House of Representatives on Thursday summoned the Central Bank of Nigeria (CBN) Governor, Godwin Emefiele, and asked him to suspend the policy.
The CBN governor has been widely criticized by both experts and laymen over the apex bank’s new cash withdrawal policy.
Thus, following a motion of Urgent Matter of Public Importance presented by Rep. Aliyu Magaji (APC-Jigawa) at plenary, the House decided to summon Emefiele to answer relevant questions respecting the cash withdrawal policy. The House urged the governor to appear on Thursday, Dec. 15.
Tekedia Mini-MBA edition 14 (June 3 – Sept 2, 2024) begins registrations; get massive discounts with early registration here.
Tekedia AI in Business Masterclass opens registrations here.
Join Tekedia Capital Syndicate and invest in Africa’s finest startups here.
Magaji, who led the debate, said the policy has pushed his constituency among others into pressure. He noted that most of the affected Nigerians live in rural areas where access to financial services is significantly limited.
“I do not know how my people will go and change this money, I do not know where my people will go and get it; the best we have is the POS, our people still deal in physical cash.
“The issue affects everyone, most of our people are in rural areas and everything is being done in Naira and cash and somebody will wake up and make a policy that will start tomorrow, no consultation.
“People have forgotten that 80 to 90 percent of our people are in the rural areas, we must do something to save the situation, if there were enough banks and facilities, why not, it will work,” he said.
Supporting the motion, Rep. Aminu Suleman (APC-Kano) said that the policy could cause the exit of many lawmakers as it was unpopular and erase the progress the country has recorded in the fight against banditry.
“Yet the CBN under Emiefele woke up and introduced this decision; this will completely eradicate all the successes we have gathered as a country in order to arrest restiveness and banditry.
“This is because the little intervention we have made by introducing small scale businesses will be completely whipped out; thousands of Nigerians have come to live and to do business through the POS.
“All these will go away with the introduction of this policy and I cannot understand how Nigerians will be able to manage our businesses that is predominantly in cash with a withdrawal of N100, 000 per day,” he said.
Speaking on the impact of the policy on the informal sector, Rep. Nnolim Nnaji (PDP-Enugu) said the CBN decision was totally against commerce. He noted that it will further compound Nigeria’s economic situation which requires more spending than savings. He explained that people need to spend to pull Nigeria out of its present economic predicament.
“We cannot at this point subject ourselves to one man, the decision is total wrong and all of us must rise and say no because it affects the people it affects.
“Yes the CBN has the power to do so but we also represent the people and before you let such decision out, we as the representatives should be aware so we can see how we can face the people,” he said.
Rep. Mark Gbillah (PDP-Benue), who noted that Emefiele has flouted several sections of the CBN Act, said the governor must appear before the house as summoned.
“Section 8 (4) of the CBN Act states that the governor shall appear before the National Assembly at semiannual hearings as specified in subsection 5 regarding,” he said.
He explained that the CBN Act stipulated that the governor should brief the parliament on efforts, activities, objectives and plans of the board with monetary policy, economic development, prospects for the future described in the report required in sub-section 5 (b).
He said that the Act also stipulated that the governor, shall from time to time, keep the President informed of the affairs of the bank, including a report of its budget.
He said Emefiele was also expected to make a formal presentation of the activities of the bank and the performance of the economy to the relevant committees of the National Assembly.
But in response to the summon, Emefiele said on Thursday that he has the backing of President Muhammadu Buhari to implement the new withdrawal policy.
“The president said we should carry on with our work, no need to fear, no need to bother anybody,” Emefiele said in Daura, Katsina State.
The Senate is set to deliberate on the matter on Tuesday.