Olisa Metuh, a former spokesperson for the People’s Democratic Party (PDP), has scoffed at the new cash withdrawal limit policy implemented by the Central Bank of Nigeria.
Goldennewsng reports that Over-the-counter cash withdrawals by individuals and businesses are limited to N100,000 and N500,000 per week, respectively, according to the CBN policy that was released on Tuesday.
The policy restricts cash withdrawals from automated teller machines and point-of-sale machines to N20,000 per day and N100,000 per week, respectively, according to a memo signed on Tuesday by the CBN Director of Banking Supervision, Haruna Mustafa.
Processing fees of 5% and 10%, respectively, will apply to individuals and businesses for withdrawals exceeding the thresholds under the new directive, which goes into effect on January 9, 2023.
The apex bank says that only N200 and lower will be allowed to be loaded into their ATMs, and that daily ATM withdrawals will be limited to N20,000.
Metuh described the new CBN policy as draconian and an inconvenience for poor Nigerians during a Wednesday interview in Abuja.
“The recently released circular on the new cashless policy by the CBN is counterproductive and an inconvenience to poor Nigerians,” the former PDP spokesman stated. “The new policy will inflict pain on the lowest level of citizens who would need to buy Point of Sales (POS) machines.
“It is inconceivable that the nation’s central bank would decide to impose a mandatory purchase of Point of Sales (POS) machines on the lowest level of citizens in an economy plagued by erratic and multiple bank charges.
This gives banks multiple opportunities to defraud the poor and puts them at risk of being taken advantage of.
“How do you anticipate Nigerians to patronize fruit and banana sellers? Due to transaction delays in the network, should we stop buying from petty traders?
What about the ongoing and numerous deductions from these petty traders’ accounts? What about the security hazard of waiting by the roadside to confirm payments?
“Is it a good time to implement a cashless economy that is sudden, immediate, and almost complete?
Even in nations with developed economies, we have seen cash transactions. When people are restricted from withdrawing less than $30 per day and $120 per week, there is no thriving economy.
“This new CBN directive is as severe as it is harmful to self-employment among the lowest cadre.”
Metuh urged the Central Bank of Nigeria (CBN) to implement policies that would address the difficulties that poor Nigerians will face as a result of the new cashless policy and to freeze bank withdrawal fees.
He said, “I approach the CBN to moderate these actions with a stop on withdrawal charges by banks and acquaint strategies with guarantee that exchanges and exchanges are not blocked by network issues.
Otherwise, the policy will recall Idi Amin’s directive to print more money in the previous Uganda.
“The CBN should not permit the very poor Nigerians’ lives to be harmed to the point where they openly embrace crime as an alternative to mean government policies.
“At times like these, we all expect our elected and appointed representatives to protect the interests of common people.
Anarchy and violent revolt will eventually occur in a society that does not care about the poor.
