New Cash Withdrawal Policy ‘ll Cripple Economy, Pauperize People-Don

Starrys Obazei/December 06, 2022.

A don at the Department of Economics, Ahmadu Bello University, Zaria, Professor Ishaq Modibo, has kicked against the new cash withdrawal policy imposed by the Central Bank of Nigeria.

The new policy, which takes effect from January 9, 2023, as indicated in a memo to banks issued on Tuesday and signed by the Director of Banking Supervision, Haruna B. Mustafa, stated that individuals would only be able to withdraw N100,000 per week (from over the counter, Point of Sale Machines or the Automated Teller Machines), while organizations can access N500,000 per week.

Banks have also been directed to load only N200 and lower denominations into their Automated Teller Machines.

Reacting on Wednesday morning in Kaduna, Professor Ishaq Modibo, a senior lecturer, noted that the new policy, if implemented, would cripple the economy, leading to more job losses.

According to him, all Point of Sales Operators (POS) will lose their jobs since the CBN has fixed a daily withdrawal limit of N20,000 per day, adding that business transactions involving cash withdrawal would equally disappear as the policy would make people poorer.

He further stressed that those many rich Nigerians would get poorer, as they would no longer have access to their money, adding that there would be a scarcity of money in circulation, which would badly affect the economy.

“When the principal or school proprietor of your children demands for school fees, your children have to stay back for days, weeks of trying to withdraw the money before they get back to school since the school authority may not even want transfer. This time, only few persons may need electronic transfer of money. Everybody needs cash which is limited in circulation,” he said.

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