Financial experts have commended the decision of the Central Bank of Nigeria (CBN) to impose a limit on cash withdrawals in the country, saying it will restore the value of naira against the dollar.
In an interview with Daily Champion, they describe the decision as a welcomed development targeted at boosting the nation’s economy.
Managing Director/ Chief Executive Officer, Maxifund Investments and Securities Plc, Mazi Okechukwu Unegbu aintained that recent initiatives from the CBN has so far helped the naira to gain a little.
According to him, the withdrawal limit will equally prevent people with so much money from corrupting the system.
He said, “I think it is good. Even doing that will help the value of our currency. I think it makes sense, I support the CBN in the drive to make sure our naira has value.
“If you look at the statistics, how many Nigerians can spend N20, 000 a week? Setting the withdrawal limit for N20, 000 a week makes a lot of sense. Now what they want to do, which I suspect is that they want to prevent these people with so much money to corrupt the system, from getting it.
“They also want to prevent bandits and kidnappers from having too much money and I think it is good.
“Those who are complaining are those who have stolen us dry, who think that they will no longer get the money with which to corrupt the system. I think, it is better to allow the CBN do what they are doing because they are doing well,” he said.
Also speaking, Former President, Association of National Accountants of Nigeria (ANAN), Dr. Samuel Nzekwe maintained that the withdrawal limit would strengthened the naira.
To him, this development with further boost the cashless policy initiative of the CBN, and reduce the circulation of fake naira.
CBN, Tuesday imposed a limit on cash withdrawals in the country, a move to promote its cashless policy.
According to CBN over the counter cash withdrawals for individuals will be limited to N100,000 weekly and N500,000 weekly for corporate.
This is contained in circular posted on the CBN website and signed by the Director of Banking Supervision, Haruna Mustapha, with reference number, BSD/DIR/PUB/LAB/015/069 directed to banks and other financial institutions dated December 6, 2022.
The circular is titled, ‘Letter to All Deposit Money Banks (DMBS) and Other Financial Institutions (Payment Service Banks (PSBs), Primary Mortgage Banks (PMBs) and Microfinance Banks (MFBs):
According to the apex bank, withdrawals above the limits attract five per cent processing fee for individuals and 10 per cent for corporate.
The development is coming two weeks after the bank unveiled its newly redesigned notes of N1, 000, N500 and N200 note on November 23, 2022.
The bank had in October lamented that 85 per cent of the money in circulation are not in the bank vaults and is hoarded by the public.
The CBN said, “Further to the launch of the redesigned Naira notes by the President of the Federal Republic of Nigeria, on Wednesday, November 23. 2022 and in line with the Cash-less policy of the CBN, all Deposit Money Banks (DMBs) and other financial, institutions (OFIS) are hereby directed to note and comply with the following:
“The maximum cash withdrawal over the counter (OTC) by individuals and corporate organizations per week shall henceforth be N100, 000 and N500.000 respectively. Withdrawals above these limits shall attract processing fees of five per cent and 10 per cent respectively
“Third party cheques above N50, 000 shall not be eligible for payment over the counter, while extant limits of N10, 000,000 on gearing cheques still subsist.
“The maximum cash withdrawal per week via Automat. Teller Machine (ATM) shall be N100.000 subject to a maximum of N20, 000 cash withdrawals per day.
“Only denominations of N200 and below shall be loaded into the ATMs. The maximum cash withdrawal via Point of Sale (PoS) terminal shall be N20.000 daily.
“In compelling circumstances, not exceeding once a month, where cash withdrawals above the prescribed limits is required for legitimate purposes. such cash withdrawals shall not exceed N5,000,000 00 and N10,000,000.00 for individuals and corporate organisations, respectively, and shall be subject to the referenced processing fees in (1) above, in addition to enhanced due diligence and further information requirements,” CBN said.
The CBN noted that customers will be required to obtain a valid means of identification.
Others will be Bank Verification Number of the payee, the notarilized customer declaration of the purpose of the cash withdrawal.