Financial experts have backed the review of the Central Bank of Nigeria’s proposed cash withdrawal limit policy for individuals and organisations.

In separate interviews on Wednesday in Lagos, the experts spoke against the background of CBN governor Godwin Emefiele’s comment that government would not be rigid in implementing the cashless policy.

Mr Emefiele, who spoke with journalists in Daura, Katsina, after briefing President Muhammadu Buhari, said the policy would be reviewed from time to time to accommodate the concerns raised by the people.

Uju Ogubunka, former executive secretary of the Chartered Institute of Bankers of Nigeria (CIBN), said the apex bank proposing to review the policy was a welcome development.

“Proposing to review the withdrawal policy is the best because it’s not practicable due to today’s economic realities,” Mr Ogubunka said. “What can N20,000 really buy in today’s Nigeria considering the steady rise in inflation rate in recent times?”

He noted that the Buhari regime should be more concerned with investing in key infrastructure that would expedite the growth of the cashless policy and deepen financial inclusion.

Mr Ogubunka said such investment should be in the hinterlands where the internet penetration is quite weak, with fewer sophisticated phones to carry out such transactions.

The former CIBN secretary added, “The CBN needs to continue to educate the people on the importance of having a cashless financial system and its implication to the economy.”

Also, former CIBN president Okechukwu Unegbu urged the apex bank not to be rigid in implementing the policy.

Mr Unegbu said the announcement of the redesigned notes was already having a noticeable impact on the nation’s currency.

“The redesigned notes policy is quite commendable as the naira is freely losing its value to other currencies. We expect the currency to, over time, begin to gain some value, as the apex bank is firmly in control and the level of arbitrage will abate,” the ex-CIBN president explained.

The CBN on December 6 put a limit on cash withdrawals made by individuals and organisations. The CBN had, in the memo introducing the policy, said third-party cheques above N50,000 would no longer be eligible for OTC payment while extant limits of N10m on clearing cheques still remained.

The circular also directed banks to load only N200 and lower denominations into their ATMs and restricted withdrawal to N20,000 per day from ATMs. Withdrawals from PoS terminals were also limited to N20,000 daily.

The policy, which will become effective on January 9, 2023, has attracted criticism. 

(NAN)