The apex bank had placed limits on over-the-counter cash withdrawals, Automated Teller Machine (ATM) withdrawals, and point of sale (PoS) withdrawals.
A human rights organisation, the Resource Centre for Human Rights and Civic Education (CHRICED) has alleged that the Central Bank of Nigeria's (CBN) new regulation on cash withdrawal limits for individuals and corporations would push more Nigerians to poverty.
The apex bank had placed limits on over-the-counter cash withdrawals, Automated Teller Machine (ATM) withdrawals, and point of sale (PoS) withdrawals.
CBN’s director of banking supervision, Haruna Mustafa, in a statement directed that over-the-counter cash withdrawals by individuals and corporate entities should not exceed N100,000 and N500,000 respectively, per week.
CHRICED, therefore, in a statement made available to SaharaReporters on Wednesday by the group Executive Director, Comrade Dr. Ibrahim M. ZIkirullahi, said the policy would have adverse effect on the socio-economic lives of average Nigerians.
The statement reads, “Resource Centre for Human Rights & Civic Education (CHRICED) has closely monitored the public debate created by the Central Bank of Nigeria's (CBN) regulation on cash withdrawal limits for individuals and corporations. Given the predicted impacts of the policy on the economy, lives and livelihoods of Nigerians, it is evident that the CBN has once again acted in a hasty and ill-conceived manner.
“In a country where the vast majority of people struggle to earn a living in the informal sector, the policy to restrict cash withdrawals amounts to an attempt to impoverish even more citizens. Also, the majority of poor and unbanked Nigerians would be struck even harder, as smartphones are the only common means to engage in digital transactions, such as cashless payments. Those who cannot afford smartphones will be left behind. The implication of the CBN's cruel policy is that electronic payments are not as secure as they would have the gullible believe, at least not in Nigeria.
“Without the proper infrastructure, a cashless system exposes citizens to hackers and robbers of the electronic world, who can drain one's account with no other way to spend money. Glitches, outages, and innocent mistakes can all cause problems and leave one bankrupt.
“In light of the latest National Bureau of Statistics (NBS) report indicating that 133 million Nigerians live in multidimensional poverty, well-intentioned government institutions should examine policy choices that will stimulate the economy and put money in the hands of citizens.
“Indeed, in a country where millions of citizens are still reeling from the devastating economic realities imposed by the COVID pandemic in terms of livelihoods and jobs, it defies belief that a government, unable to provide any form of economic stimulus, would even consider an idea that would result in more people losing their jobs. It is disheartening that the CBN does not care about the millions of people whose livelihoods will be destroyed as a result of the apex bank's rash and harebrained experimentation.
“CHRICED believes that this policy demonstrates that the Godwin Emefiele-led CBN has never had the best interests of ordinary citizens in mind since his appointment as Governor of the CBN; in fact, this policy calls to question his qualifications as a banker and economist.
“This kind of despicable monetary policy is not acceptable to the Nigerian people, and therefore stands rejected. The result of this discredited policy is a flagrant violation of the explicit provisions of Section 16(1) of the 1999 Constitution (as amended), which stipulates that the State shall, within the context of the ideals and objectives for which provisions are made in this Constitution, (a) harness the nation's resources and promote national prosperity in an efficient, dynamic, and self-reliant economy for every citizen on the basis of social justice and equality of status and opportunity; (b) control the national economy in such manner as to secure the maximum welfare, freedom and happiness of every citizen on the basis of social justice and equality of status and opportunity.
“In Section 16 (2b) the Constitution mandates that the economy is not operated in such a manner as to permit the concentration of wealth or the means of production and exchange in the hands of a few individuals or a group. CHRICED makes no mistake about the fact that this current policy of the CBN is a complete breach of the provision of the nation’s constitution, and an attempt to rob ordinary Nigerians, and put their proceeds in the vaults of banks, which contribute virtually nothing in terms of supporting the real sector of the economy.
“CHRICED is also not swayed by the argument that the discredited policy of further limiting cash withdrawals would prevent vote buying during the 2023 general elections. Was the CBN asleep when politicians blatantly violated its financial policy by buying their way in the delegate primary elections? Nonetheless, if this is the purpose, then the focus of the policy should be on those who make suspicious withdrawals of large sums of cash during the elections. Ordinary Nigerians who are struggling to feed their families and get on with their lives should not be the target of such a policy.
“If the CBN is truly interested in tracking unscrupulous elements, that want to use hefty sums of cash to compromise the integrity of elections or for other criminal activity, it knows what to do commends Nigerians who have so far used all peaceful and lawful channels to resist this draconian policy. CHRICED calls on the National Assembly to apply maximum pressure to force a reversal of this discredited policy. If the CBN Governor insists on inflicting more suffering on Nigerians, processes should be put in place to immediately remove him from the very sensitive position of CBN Governor.”