he Coalition of Northern Groups (CNG) has vowed to take what it called “necessary actions” against the Central Bank of Nigeria (CBN) over its recent policy on bank withdrawal limits.
The apex bank had directed all banks to ensure that over-the-counter cash withdrawals by individuals and corporate entities do not exceed N100, 000 and N500, 000, respectively, weekly.
CBN also directed that only N200 and lower denominations should be loaded into banks’ ATM machines.
But CNG’s Spokesperson, Abdul-Azeez Suleiman, at a press briefing yesterday in Abuja, contended that the policy was initiated to cripple Northern entrepreneurs, adding that they normally transact in billions, especially market days and they deal with cash payments.
Suleiman argued that the policy was contrary to the Money Laundering Act of 2022 Section 2, which he quoted as saying that ‘No person or body corporate shall, except in a transaction through a financial institution, make or accept cash payment of a sum exceeding (a) N5,000,000 or its equivalent, in the case of an individual or (b) N10,000,000 or its equivalent, in the case of a body corporate.’
“For the avoidance of doubt, the CNG is resolved to take further necessary actions to stop Emefiele and the CBN from going ahead with the implementation of this and other manifestations of inconsistencies and misalignments between the fiscal and monetary policies of the Government.
“This is because it is embarrassing that the CBN has been making announcements without any regard to the constitution and other relevant laws on the national economy and in complete defiance of the Money Laundering Act, Section 2 of the Money Laundering Act, 2022 for instance, provides as follows: “2. (1) No person or body corporate shall, except in a transaction through a financial institution, make or accept cash payment of a sum exceeding (a) N5,000,000 or its equivalent, in the case of an individual or (b) N10,000,000 or its equivalent, in the case of a body corporate.
“We find it ridiculous for Emefiele and the CBN, after plunging the country into an economic crisis, that involves high inflation, poor exchange rate, and dwindling foreign reserve as symptoms of mismanagement and bad economic policies, to so arrogantly insist on the enforcement of this policy despite an order of the National Assembly to the contrary.
“The CNG notes that the timing without adequate preparation and sensitisation of the critical mass that drives the economy (the SMEs and MSMEs) could prove counter-productive and further drive many below the poverty line.
“We note also that the banking infrastructure and mobile/digital facility to drive the cashless policy in Nigeria and in the North, in particular, are not sufficiently developed.
“As usual, not one to remain silent in the face of this constancy of disastrous Monetary Policies by the CBN that potentially affect the livelihood of Nigerians and the people of northern Nigeria.
“Northern Nigeria is convinced that the policy introduced by the CBN is totally against Northern Nigerian interest for the following reasons:
“The North has the lowest financial Inclusion rate. Out of the total number of deposit money bank branches, the North has less than 25%.
“Out of over 800 Microfinance banks in Nigeria, the North has less than 20%. ( Lagos has over 150 MFBs, the whole North East has less than 50, Borno has 3 MFBs. Yobe has 1).
“States like Borno and Yobe have not more than one branch per DMBs and they all concentrate in the state capital while other LGs are totally excluded from the banking system,” he said.
Credit:Daily Sun