Soludo Chairs Govs' C'ttee on CBN Withdrawal Limit

Starrys Obazei | January 21, 2023.

The 36 governors in Nigeria have resolved to set up a six-member committee led by the Anambra State, Governor Charles Soludo, to engage the Central Bank of Nigeria in addressing issues about the country’s monetary management and financial system.

The governors also resolved to collaborate with the CBN and the Nigerian Financial Intelligence Unit in advancing genuine objectives within the confines of Nigeria’s laws.

The governors arrived at the resolutions arising from its first meeting in 2023 held on Thursday, January 19, under the auspices of the Nigeria Governors’ Forum, NGF.

The NGF in a communiqué issued on Saturday signed by its chairman, the Sokoto State Governor Aminu Tambuwal, noted that the recent NFIU advisory and guidelines on cash transactions were outside the NFIU’s legal remit and mandate.

The CBN on December 6, 2022, directed banks, and other financial institutions, payment service banks, primary mortgage banks, and microfinance banks to limit the maximum cash withdrawal over the counter by individuals and corporate firms weekly to N100,000 and N500,000 respectively adding that withdrawals above the lower limit would require processing fees of 5% and 10% respectively for individuals and corporate firms henceforth.

The apex bank further directed that third-party cheques above N50,000 shall not be suitable for OTC payment while extant limits of N10 million on clearing cheques stay, following the apex bank’s latest naira notes redesign.

Following pressure from Nigerians and lawmakers, the CBN revealed a revised upward in its cash withdrawal limit, saying individuals can now withdraw N500,000 cash weekly while corporate firms can withdraw up to N5 million cash across all channels comprising Automated Teller Machines and Point Of Sale terminals.

The NGF said the CBN governor, Mr. Godwin Emefiele, briefed it on the naira redesign, its economic and security implications, including the new withdrawal policy.

The governors stressed that they were not opposed to the objectives of the naira redesign policy, however, observed that there were huge challenges that remained problematic to the Nigerian populace.

Speaking further the governors expressed the need for the CBN to consider the peculiarities of states especially as they pertain to financial inclusion.

The governors therefore resolved to “set up a six-member Committee to be chaired by Governor Charles Soludo of Anambra State, and the governors of Akwa Ibom, Ogun, Borno, Plateau, and Jigawa as members, to engage the CBN in addressing anomalies in the country’s monetary management and financial system.

“Work closely with the CBN leadership to ameliorate areas that require policy variation particularly the poorest households, the vulnerable in society, and several other citizens of our country that are excluded.

“Collaborate with the CBN and the Nigerian Financial Intelligence Unit NFIU in advancing genuine objectives within the confines of our laws, noting that the recent NFIU.”

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