Wednesday, February 8, 2023

Nigerian parliament demands immediate reversal of CBN’s cash limit policy

Central Bank governor Godwin Emefiele was also ordered to appear before the House by Speaker Femi Gbajabiamila.

• December 8, 2022
House of Representatives and Governor Godwin Emefiele
House of Representatives and Governor Godwin Emefiele

The Nigerian House of Representatives has instructed the Central Bank of Nigeria to immediately cease the execution of its newly announced cash limit policy.

This directive was issued during the Thursday plenary, in response to a motion under matters of urgent public importance moved by Magaji Dau Aliyu. 

Central Bank governor Godwin Emefiele was ordered to appear before the House by Speaker Femi Gbajabiamila.

The apex bank’s monetary policies will be suspended indefinitely pending the conclusion of the anticipated engagement with the House over compliance with the pertinent provisions of the CBN act and the 1999 constitution.

Many other lawmakers who spoke vehemently denounced the CBN decision, with the exception of the minority leader, Ndudi Elumelu, who supported the CBN policy arguing that it will reduce the incidence of corruption and curtail banditry.

A point of order was raised by Mark Gbillah in the middle of the proceedings, reminding the House that the CBN governor was required to brief the national assembly on the apex bank’s monetary policy on a regular basis in accordance with the CBN Act and the 1999 Constitution.

He stressed that the national legislature had not given its consent for such spending and that the CBN had not explained to Nigerians how the redesign of the naira was paid for.

Peoples Gazette had earlier reported that the lawmakers summoned the apex bank boss to explain the bank’s latest policy.

The bank on Tuesday announced a new policy that pegged maximum cash withdrawal to N100,000 and N500,000 weekly for individuals and organisations respectively.

The policy is billed to take effect from January 9, 2023.

Many bodies including the Abuja Chamber of Commerce and Industry have faulted the CBN cash limit policy, saying it would adversely affect small businesses that thrive o petty cash.

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