*Ailing CBN Gov, won’t appear before Reps
Godwin Emefiele, the embattled Governor of Nigeria’s Central Bank seems to have bucled under pressure as the bankers’ bank has increased the maximum weekly limit for cash withdrawals across all channels by individuals and corporate organisations to N500,000 and N5 million, respectively.
The directive is contained in a circular issued by the bank on Wednesday and signed by the director of banking supervision department, Haruna Mustafa.
In the past few days, the policy announced by the CBN two weeks ago has been the subject of mixed reactions, heated debates and condemnation by stakeholders and state institutions such as the National Assembly.
The review is coming two weeks after the CBN reduced the weekly over-the-counter cash withdrawal limit for individuals to N100,000 and that of corporate organisations to N500,000.
The apex bank also reduced withdrawals at Automated Teller Machines and point-of-sale terminals to N20,000 daily.
In the Wednesday circular, the apex bank said it made the upward review based on feedback received from stakeholders.
“The CBN hereby makes the following reviews:
(1) the maximum weekly limit for cash withdrawal across all channels by individuals and corporate organisations shall be N500,000.00 and N5,000,000.00 respectively.
“2. In compelling circumstances where cash withdrawal above the limits in (1) is required for legitimate purposes, such requests shall be subject to a processing fee of three per cent and five per cent for individuals and corporate organisations, respectively.
“Further to (2) above, the financial institution shall obtain the following information from the customer, at the minimum, and upload same on the CBN portal created for the purpose: valid means of identification of the payee (national ID, international passport, or driver’s license), bank verification number of the payee, tax identification number of both the payee and the payer, and an approval in writing by the MD/CEO of the financial institution authorising the withdrawal.
“Third party cheques above N100,000 shall not be eligible for payment over-the-counter, while the extant limit of N10 million on clearing cheques still subsist.”
The CBN also said monthly returns on cash withdrawal transactions above the specified limits should be rendered to the banking supervision department, other financial institutions supervision and payments system management departments.
It added, “Compliance with extant AML/CFT regulations relating to the KYC, ongoing customer due diligence and suspicious transaction reporting etc. is required in all circumstances.
“Customers should be encouraged to use alternative channels (internet banking, mobile banking apps, USSD, cards/POS, eNaira, etc.) to conduct their banking transactions.
The apex bank noted that it recognised the vital role that cash played in supporting underserved and rural communities and would ensure an inclusive approach as it implemented the transition to a more cashless society.
“All banks and OFls are to note that aiding and abetting the circumvention of this policy will attract severe sanctions,” CBN said.
“The above directives supersede that of December 6, 2022 and take effect nationwide from January 9, 2023,” the CBN said.
The Governor of the Central Bank of Nigeria, Godwin Emefiele, will not appear before the House of Representatives on Thursday, as he was said to be ill, the apex bank has said.
Emefiele will be represented by the Deputy Governor, Financial System Stability, CBN, Aisha Ahmad.
In the latest letter the House received from the Deputy Governor, Corporate Services, CBN, Edward Adamu, Emefiele was said to be ill and would not appear before the lawmakers in person.
For the second time, Emefiele failed to appear before the House on Tuesday.
Amidst protests and condemnation, the lawmakers rescheduled his appearance for Thursday, insisting on suspension of the cash withdrawal limits set by the apex bank.
The House had summoned Emefiele to explain the latest policy by the CBN which, among others, set limits to cash withdrawals at the Deposit Money Banks and other financial institutions.
After Gbajabiamila read out Amadu’s letter to members in the middle of Wednesday’s plenary, the lawmakers resolved to accept Emefiele’s representation.
