House or Reps summons Emefiele with a view to securing reversal of cash withdrawal limits policy

CENTRAL Bank of Nigeria (CBN) governor Godwin Emefiele has been summoned to appear before the House of Representatives tomorrow to explain the new cash withdrawal limitations introduced in the wake of the redesigning of the naira.

On November 23, the CBN launched redesigned Nigeria's ₦‎200, ₦‎500 and ₦‎1000 banknotes, saying the naira was long overdue to wear a new look. According to President Muhammadu Buhari, the new naira banknotes have been fortified with fresh security features that make them difficult to counterfeit.

With the introduction of the new notes, Nigerians have until January 31 2023 to hand in their old notes but is certain create a rush. In a bid to avoid any chaos during the exercise, the CBN has issued a revised cash withdrawal policy, stating that withdrawals above N100,000 and N500,000 will henceforth attract  a 5% and 10% levy respectively.

However, this move has not been universally accepted, as it has created fears that the informal economy and the retail sector which are heavily dependent on cash for their survival, will be hit hard. Lawmakers have already told the CBN to consider rescinding the decision as it will lead to untold hardship for millions of Nigerians.

Mr Emefiele has been summoned to appear before lawmakers tomorrow with the view to getting him to suspend action on the controversial new directive. Lawmakers took this course of action after adopting a motion of urgent public importance moved by Hon Aliyu Magaji earlier today.

Several lawmakers warned that the new CBN policy would have serious consequences and adverse effects on businesses and Nigerians who have no access to the banking system. Minority leader, Hon Ndudi Elumelu, however, said the policy would check crime as funds would now be tracked through the banking system and although the timing might be wrong, the country would benefit more from it.