Cash Withdrawal Policy: Senate asks CBN to extend implementation deadline

As a result of the redesigning of the N200, N500, and N1,000 banknotes, the Senate in a unanimous resolution Wednesday urged the Central Bank of Nigeria (CBN) to extend the deadline for the return of the old currency from January 31, 2023, to June 30, 2023.

The Resolution followed a point of order raised by the lawmaker representing Borno South senatorial district, Senator Ali Ndume titled, “Urgent need to extend the withdrawal of old currency from circulation.”

The Lawmaker is seeking a time extension, explaining that the timeframe for the implementation of the policy is too short and could inflict hardship on the masses if due diligence is not done.

It was noted that the new notes are not in circulation in the cities, talkless of the rural areas.

His observation earned the support of other lawmakers who agreed with his views and urged the Apex Bank to consider the time extension.

President Muhammadu Buhari released the new naira notes in response to the apex bank’s pronouncement.

Raising Orders 41 and 51 of the Senate Standing Rules, Ndume stated that the request for a date extension should be treated as a matter of urgent national importance in order to prevent imminent hardship on Nigerians.

Ndume said: “This senate notes that many Nigerian banks on Thursday, Dec. 15, opened their vaults to customers and depositors to exchange their old currency notes for the newly redesigned currency notes which have a stipulated deadline of Jan. 31.

“Some Nigerians are already envisaging long queues in the banking hall across the country as a result of people trying to get access to the new naira notes.

“The old notes are expected to be in circulation along with the new ones until January 31 when the old ones are expected to be phased out.

“It is expected that many Nigerian businesses will start to rid the old notes as soon as banks start paying redesigned notes to customers.”

The lawmaker also stated that access to the new notes would be complicated by the CBN’s recent circular, which limited the amount of cash that corporate companies may withdraw in a certain period of time.

“If the withdrawal of old notes from circulation is not extended beyond January 31, many Nigerians would face hardship, and to avoid a repeat of the 1984 experience, withdrawal of old notes,” he stated.

But, Ndume failed to acknowledge that the CBN last week announced an upward review of the cash withdrawal limits across all payment channels by individuals and corporate organisations.

Under the updated regime, the apex bank had said effective January 9, 2023, individuals and corporate entities could withdraw a maximum of N500,000 and N5 million, respectively, away from N100,000 and N500,000, respectively, which was previously announced on December 6, 2022.

In an updated circular dated December 21, 2022, and addressed to all Deposit Money Banks (DMBs) and Other Financial Institutions, Microfinance Banks, Mobile Money Operators, and Agents, the CBN explained that the upward review was a result of the feedback it received from stakeholders.