The Central Bank of Nigeria’s policy on restriction on daily cash withdrawal takes off across the country today, Monday, January 9.
This arrangement, had the maximum weekly limit for cash withdrawals across all channels by individuals and corporate organisations is N500,000 and N5 million, respectively. Individuals or organisations that have a compelling need to withdraw above the approved limits to transact legitimate businesses will have to pay a processing fee of three per cent and five per cent respectively.
The financial institutions are also expected to 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; Approval in writing by the Managing Director/Chief Executive Officer of the financial institution authorising the withdrawal.
The CBN ordered Deposit Money Banks not to pay customers making over-the-counter withdrawals of new naira notes again.
Instead, the apex bank directed the banks to load their Automated Teller Machines with only new notes to ensure that the currency circulates across the nation ahead of the January 31, 2023 deadline when the old notes will no longer be legal tender.
It was gathered that the apex bank issued the directive to the banks on Wednesday and ordered that the implementation must begin immediately.
However, as of Friday, the banks had not been able to comply with the directive as they complained of inadequate supply of the new notes, prompting them to load their ATMs with the old notes.
50% PoS Operators Close Shops Over Naira Scarcity
Over 50 per cent of Point of Sale operators have closed their shops as scarcity of new and old naira notes bites harder, it has been learnt.
The National Chief Aggregating Officer of the Association of Mobile Money and Bank Agents in Nigeria, Hussein Olanrewaju, who made this disclosure on Monday, said the impact of the ongoing shortage of new and old naira notes had worsened the plight of their members.
While noting that agents should be given preferential treatment in access to the new notes, he lamented that some Nigerians had taken advantage of the situation to charge unreasonable fees.
He said, “Operators are licensed bodies that provide platforms which agents leverage on. Currently, agents do not have any preferential treatment to deliver this service, hence, more than 50 per cent of agent shops have been closed down as we speak.
“Some agents, however, go extreme to buy these monies and those who do not, move from one ATM point to another incurring lot of cost in the process which will also reflect on the service charge.
“It’s worthy to note that some Nigerians have taken advantage of this situation to charge people unreasonable charges.”
Hussein further stressed that the ongoing policy meant to swap cash in unbanked areas might not achieve its mandate due to the low number of agents selected for the scheme.
He added that including more agents remained the best solution to easing the financial stress Nigerians were currently facing.
“As designed by the CBN, the exercise is going as expected. However, it doesn’t really translate to profit for agents. Out of over 1.4 million agents, only 30,000 agents were picked to participate in the cash swap programme, the number is too small and can barely effect any change.
“Agents are the ones available and accessible to ease the financial stress Nigerians are currently facing,” he concluded.
Naira Scarcity: Fashola Advises CBN What To Do
The Minister of Works and Housing, Babatunde Fashola, has advised the Central Bank of Nigeria (CBN) to review its naira swap policy to reverse its negative impact on Nigerians.
Fashola, who made a live appearance on Channels Television’s The 2023 Verdict on Monday, was reacting to the outcry over the widespread scarcity of the N200, N500, and N1,000 banknotes since they were unveiled on November 23, 2022.
According to the CBN, the old versions of those denominations will no longer be legal tenders after February 10, 2023 as the apex bank targets hoarders of illicit funds in the buildup to the general elections.
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The minister bemoaned the hardship brought on by the directive of the apex bank, saying it was imperative that public officeholders reviewed their policies when they had the opposite effect than desired.
“I empathise with those challenges but some of them are the result of policy and it is the responsibility of public servants, especially those responsible for those policies to look back and say, ‘Did we intend to cause this pain?’
“And if the policy is not working, perhaps you have to readjust and to also ask yourself whether you thought this through. As a public officer, before and now, I have had cause to reverse myself, when I saw that my policies were causing unintended results.
“So, I have no responsibility on those two areas and therefore I cannot speak to the details of the facts that are available to the policymakers but the important thing is that those policies are not yet delivering the results and are delivering a lot of inconvenience for [people],” he said.
Naira Crunch: CBN Monetary Policies Best For Nigeria Economy – Obaseki
Despite criticism, pains and suffering in accessing the naira, Edo State governor, Godwin Obaseki, on Monday insisted that the Central Bank of Nigeria, monetary policies of Godwin Emefiele’s towards a cashless economy remain the right decision for the nation’s economy.
The Governor, however, called for more enlightenment and patience on the path of Nigerians, even as he urged the apex bank to ensure the availability of naira notes for the citizenry whom he said are going through pains in getting money to spend.
The Governor spoke shortly after he summoned a meeting with senior officials of the CBN and senior management staff of banks in Government House Benin on the difficulty of the people in accessing cash.
He also appealed to the people to take advantage of ATMs, POS and bank wallets for transactions.
He said, “I had to invite the Central Bank and senior management of all the banks in Edo state to come and meet with me in the government house because government is very much concern about the plight and suffering of our people who are worried over the inability to get cash from the banking system in Edo state.
“Haven discussed extensively with the CBN and the bankers that the policy of moving the Nigeria economy to one of a cashless system should be encouraged. It is the best thing for our banking system so the Edo state government has no problem with the policy of the federal government to move our economy to a cashless one.
“However, we want to ensure we do this as painlessly as possible; we have to improve on the communication with our people to reduce their fear. When people go to banks to collect cash because they want to spend it on something, we want to help to inform them that they don’t need to collect cash to spend cash.
“We actually have other means to spend cash without going to the bank to collect cash. From Phones, payment can be made to whomever. For those who don’t have sophisticated phones, with USSID codes you can pay for things as small as N500 without spending cash. So when you go to POS terminals, don’t ask for cash, let them do for you what you want to use the cash for via transfer”.
Director, Risk Management of Central Bank, Blaise Ijebor said they are in Edo to ensure there is supply of naira to everyone on Edo state.
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“We are also here to encourage people to use alternative means to make their payment. If you are able to use your card, app or USSID to pay, you can even go to an ATM that doesn’t have cash to do your transfer from them.
“We are aware a number of ATMs are not paying. We are going to make sure that there is supply in a day or two, we have supply available through your bank branches to give some cash to use.”
He also added that there are monitoring teams going round working with EFCC and ICPC to check any illegal act or collusion with banks.
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