CBN will tweak new withdrawal policy as new notes distribution commences on December 15- Emefiele

Governor of the Central Bank of Nigeria, Mr. Godwin Emefiele, stated yesterday that the apex bank will take into account modifying the new weekly cash withdrawal limits of N100,000 and N500,000 for customers of personal and corporate banks.

Emefiele promised that the apex bank would not be strict on the policy because it was not intended to harm anyone but to enhance the country’s economy when he spoke to State House reporters after meeting with President Muhammadu Buhari in Daura, Katsina State, behind closed doors.

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Emefiele also mentioned that bank customers had deposited over N1 trillion worth of old notes, and that the CBN had given banks the new N200, N500, and N1,000 notes to distribute to their customers before the previously scheduled date of December 15 for the introduction of the new notes.

As previously reported by Valid View Network, the CBN on Tuesday introduced a revised cash withdrawal restriction with a weekly cap of N100,000 for individuals and N500,000 for corporate entities.

Emefiele responded to criticism of the new restrictions by pointing out that more and more nations adopting digitization have abandoned the use of cash and that no one was specifically targeted by the policy.

President Buhari “was happy and said, we should keep on with our work, no need to fear, no need to bother about anybody,” according to Emefiele, who claimed he went to Daura to welcome Mr. President and inform him of what was occurring with the CBN and the economy.

He said, “We can only continue to plead to Nigerians to kindly see this policy the way we have presented it,” after stating that the new apex bank policy was for the benefit and development of the Nigerian economy.

On the pushback from the Senate, he said, “Well, the Senate is the National Assembly, they are the legislative arm of the government and from time to time, we brief them about what is happening and about our policies and I’m aware that they have asked for some briefings and we will brief them.

“But I think it’s important for me to say that the cashless policy started in 2012. But on almost three to four occasions, we had to step down the policy because we felt that there was need for us to prepare ourselves and deepen our payment system infrastructure in Nigeria.

“Between 2012 and now 2022, that is almost about 10 years, we believe that a lot of electronic channels have been put in place that will aid people in conducting banking and financial service transactions in Nigeria.

He stated: “At the Central Bank, we have taken in over half a trillion, and with the banks, we also have close to half a trillion in the amount of the old notes that the CBN has been able to repatriate back to the vaults. However, in order to handle this cash as rapidly as possible, the Central Bank has moved more personnel from various departments into currency processing. From there, banks can now transport their assets.

Regarding the distribution of the redesigned naira notes, Emefiele stated: “There are so many things happening, issues around the new currency and the fact that the new currency has just just arrived at the banks and we are in the process of distributing it.

“I can only assure you that it will go round, let us just be calm, luckily the old currency continued to be legal tender till January 31, 2023. So, I want to crack a joke, both the painted (new notes) and unpainted (old notes) will operate concurrently as a legal tender. But by January 31, the unpainted one will not be useful to you again, so please take it to your bank as quickly as possible,” he added.