CBN says that they have ordered 500 million new Naira notes. Governor of the Central Bank of Nigeria (CBN) Godwin Emefiele has stated that 500 million pieces of the newly redesigned Naira bills were requested from the minting firm in response to public concerns that banks are not issuing enough of the new currency.
Meanwhile, the central bank has indicated that the new withdrawal restrictions are enough for mobile money service providers, often known as Point of Sale (PoS).
Additionally, it put to rest concerns that the Bank’s new cashless policy might hinder efforts to increase employment.
Yesterday, at the behest of the lawmakers, Emefiele appeared before the House of Representatives general meeting in Abuja to brief them on the new monetary policies that have become controversial in some quarters. He did so through the deputy governor of the apex bank in charge of Financial System Stability at the CBN, Mrs. Aisha Ahmed.
He argued that the bank’s judgment that 90 days’ notice was adequate to have Nigerians sensitized was irrelevant and that the timing of the execution of the monetary policies, notably the cash withdrawal restriction, was irrelevant.
He did say that the CBN was working with the NOA and other groups to provide the necessary public education on public legislation.
Last Monday, the House passed a motion ordering Emefiele to testify about the banker’s bank’s “vexatious policies.”
After being peppered with questions by the legislators, Ahmed finally said, “You asked a question. We had the Mint produce 500,000,000 bills for us. What you said is exactly what has been requested.
Crimes such as armed robbery, abduction, sponsorship of terrorist activities, advance fee fraud, corruption, ransom payment, extortion, etc., are decreasing in frequency, and the Nigerian payment service is expanding thanks to new technologies and lower fees. Expanding access to financial services is possible at scale through electronic channels. The 152 million Nigerians who own a mobile phone constitute the country’s mobile phone penetration (according to NCC).
According to an EFINA poll, 81 percent of Nigerians living in the country’s rural areas have access to mobile phones.
Advantages of cashless policy
Emefiele stated, among other benefits, that a cashless policy would make it harder to fund terrorist activities.
After Femi Gbajabiamila, the Speaker of the House voiced some legal concerns regarding the CBN’s practice of providing periodic briefings to the National Assembly before enacting any new monetary policies, the governor of the Central Bank of Nigeria took note.
Cash limit not politics
Contrary to rumors, he stated the company’s cash withdrawal restriction policy was not based on politics.
He elaborated by saying that the plan resulted from careful deliberation and investigation.
When asked by Chinedu Obidigwe (APGA-Anambra) if the strategy was designed to help the current governing party, the All Progressives Congress (APC), in the 2023 election, he said that it was not.
Despite fears that it would result in job losses, Hee claimed the policy would instead lead to increased hiring in the information and communications technology industry.
POS operators are within limit
In response to questions about how the new withdrawal limit of N5,000,000 will affect POS operators, he said that data gathered by the CBN shows that the amount is sufficient to handle the volume of transactions taking place on the mobile money agents’ platform at present.
According to him, the CBN was informed that the POS had employed around 4.4 million Nigerians.
He said that mobile money agents are available in all Nigerian municipalities.
Regarding the withdrawal limit for cash, we listened to the concerns of Nigerians following the suggestions given by this honorable body.
CBN said that we would be adaptable in how we apply this policy in light of the feedback we get from stakeholders. Since then, we’ve dramatically increased the cap from the previous N100,000 weekly to N500,000 for individuals and from N500,000 for corporations to N5 million weekly.
Since mobile money brokers play a crucial role in some underserved groups in rural regions and some market areas, they, too, would be subject to this newly updated law.