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Representatives summon Emefiele and ask CBN to suspend the new cash withdrawal policy

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House of Representatives

The House of Representatives has summoned the Central Bank of Nigeria Governor, Godwin Emefiele, on the new restrictions on cash withdrawals.

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The Chamber resolved that Mr. Emefiele appear before it next Thursday.

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Aliyu Magaji

The decision to summon Mr. Emefiele followed a matter of urgent public importance motion by Aliyu Magaji (APC Jigawa) on Thursday during plenary.

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Director of Banking Supervision

In a memorandum issued on Tuesday, signed by the Director of Banking Supervision, Haruna Mustafa, the main bank ordered all banks and other financial institutions to ensure that over-the-counter cash withdrawals by natural and legal persons do not exceed the N100,000 and N500,000, respectively, per week.

In the new development, CBN indicated that only N200 and lower denominations should be loaded at bank ATMs.

Lawmakers resolved that the CBN must halt implementation of the policy until the investigation is complete.

The movement

In the motion, Magaji said that small businesses, which are the main drivers of the economy, rely on cash for transactions. He added that the owners of these businesses will be negatively affected by this policy.

He said that although the CBN has the legal power to implement monetary policy, however, the policy will have a negative impact on the broader economy.

Central Bank of Nigeria

“Although the Central Bank of Nigeria has the right to issue monetary policies on the Nigerian economy so that it can guide and direct the economy towards the right part of recovery and growth, however, the new policy implemented by the Central Bank of Nigeria (CBN ) will definitely have a negative impact on the already declining economy, and further weaken the value of the naira, as Nigerians may decide to use dollars and other currencies as a means of trade and thus further devalue the naira and weaken the economy,” he said. .

The legislator also stated that the majority of rural inhabitants are among the unbanked, so the policy will affect their economic activities.

United States

“It is good to have a cashless policy, but it seems that we are borrowing ideas and policies from other countries that are far ahead of us. We are comparing ourselves to the United States and the United Kingdom. These people are way ahead of us. We will get there one day, but this kind of politics disturbs the people who voted for us.

“The issue affects everyone, most of our people are in rural areas and everything is being done in Naira and in cash. And someone will wake up and make a policy that will start tomorrow, without consultation, ”she stated.

Aminu Suleiman

Also speaking in support of the motion, Aminu Suleiman (APC, Kano), said that CBN seems too detached from the people with politics.

The lawmaker also argued that allowing the policy to go unchallenged could have political consequences for lawmakers. According to him, the policy could be the “starting board” for him.

“This could be a starting board for many of us if we allow this sweeping decision to succeed and therefore my voice must be heard on the matter.

“There are a number of government CEOs in this country who have outlived the substance of their positions because I simply cannot understand how we can wake up one day and introduce this draconian approach to business, giving Nigerians a month to buckle down.” Suleiman said. fixed.

Minority Leader Ndudi Elumelu

The motion was opposed by Minority Leader Ndudi Elumelu (PDP, Delta), who defended the CBN policy, describing it as the best thing that has ever happened to this country.

His argument was to put an end to the collection of ransoms by kidnappers and bandits. He noted that the policy will make it more difficult for bandits to collect ransoms.

“Part of the problems……which is enforcing the kidnapping and all the vices that today are very enemies, if one goes to the communities today, they are going to ask them to contribute money. It is because there is cash everywhere.

“If you want to stop banditry, make it impossible for them to have cash, there should be no cash available to them,” he said.

CBN Act

Elumelu also informed his colleagues that the CBN is acting within the CBN Act, a law enacted by the same federal legislators. He admonished his colleagues to change the law if they don’t feel comfortable with the CBN’s action.

“We approved the law on this floor, it is our law. Just because the CBN has been sleeping all this time and never got into the law we passed and followed it to the letter doesn’t mean it wasn’t there.

“Only now are they waking up to implement the law that we sent them. If we want to amend it, we have to amend the law. it will not come for a resolution and that is the truth,” Elumelu said.

Dachung Bagos

Similarly, Dachung Bagos (PDP, Plateau) also supported the security-based policy. However, he urged the House to get an explanation from the CBN governor on the policy.

Mark Gbillah

Mark Gbillah (PDP, Benue) raised a point of order that the CBN Governor violated Section 8, Subsection 4 of the CBN Act by failing to report to the House on the implementation of the policy.

CBN Law

He explained that the CBN Law requires the CBN Governor to report to the National Assembly twice a year on its policies and programs. He pointed out that Mr. Emefiele has not been fulfilling this responsibility.

National Assembly

“The Governor will appear before the National Assembly in semi-annual hearings, as specified in subsection 1, in relation to the efforts, activities, objectives and plans of the board with monetary policy and economic development and the prospects for the future”, says section 8(4).

National Assembly

Mr. Gbillah added that subsection 5 also says that “the governor shall, from time to time, make a formal report and presentation on the activities of the board and the performance of the economy to the relevant committees of the National Assembly.” .

National Assembly

The lawmaker also raised questions about the source of funding for printing the new coins. He claimed that the money was not appropriated by the National Assembly.

Femi Gbajabiamila

Before questioning the motion, the Speaker, Femi Gbajabiamila, said that he would contact the President of the Senate, Ahmad Lawan, about a possible joint session.

CBN Governor

He added that if a joint session is not possible, the CBN Governor must appear before the House.

National Assembly

“If you want to comply with the Law, ordinarily you should be appearing before the entire National Assembly. I think it will allow me to speak with the president of the Senate and see if, in compliance with the Law, we can have a joint session,” he said.

When Mr

When Mr. Gbajabiamila challenged the motion, the members overwhelmingly supported and passed it.

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