Senate panel has approved the CBN’s explanation of the cash withdrawal limit.

The Senate Committee on Banking, Insurance, and Other Financial Institutions announced on Friday that it has gathered the necessary information on the merits of the Central Bank of Nigeria’s (CBN) cash withdrawal limits for submission to the Senate.

On Wednesday, the upper legislative chamber charged the committee with obtaining from the apex bank compelling reasons for the implementation of the policy, which limits an individual to N100,000 per week and a corporate organization to N500,000 per week.

Senator Uba Sani, chairman of the committee, stated following a confirmation hearing with some re-appointed Deputy Governors of the apex bank:

“With the presentation made by Aisha Ndanusa Ahmad, Deputy Governor of the Central Bank of Nigeria, on Financial System Stability and the planned limited cash withdrawal, the necessary information on the merits of the policy has been provided and will be communicated to the Senate in plenary through our report.”

“The two Deputy Governors require no further questioning because they were previously screened prior to serving their first terms.” And, once again, as unanimously agreed by Committee members, they should take a bow and depart.”

When asked to explain the policy, Mrs. Aishat Ahmad, Deputy Governor of the Central Bank of Nigeria on Financial System Stability, said it was implemented in 2012 during former President Goodluck Jonathan’s administration and was extended to Abuja and six other states in 2013.

The CBN Deputy Governor made the disclosure during the screening process for the re-appointments of her and her counterpart on Corporate Services, Edward Lametek Adamu.

She stated that the CBN’s cashless policy is not new, adding that necessary steps in that direction were taken in 2012 with Lagos State as a pilot scheme and Abuja and six other states in 2013.

She explained that, while the CBN has not fully implemented the policy since then, its introduction has resulted in significant changes in the banking and payment systems.

“Required infrastructure for its implementation in terms of a financial access point system, mobile money, e-naira, and so on is available across the country’s 774 local government councils,” she says.

“All fears and concerns expressed by Nigerians about the planned limited cash withdrawal policy are being seriously addressed, as nobody or a segment of Nigerians will be left out.” “Banking transactions in Nigeria were previously limited to bank branches as the sole means of transaction, but this has now expanded to multiple electronic platforms, as well as a geometrical increase in the number of agents from 88,000 to 1.4 million,” she said.

She did, however, state that the Apex Bank is adaptable and will be willing to accommodate views that will not make the policy burdensome to any category of Nigerians during implementation.