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Reps ask CBN to suspend freshly imposed cash transaction charges

The lower chamber of the National Assembly has asked the Central Bank of Nigeria (CBN) to suspend the recently imposed charges on cash deposits in some selected states in the country.

It would be recalled that in a circular released on Tuesday, the CBN had directed all deposit money banks in the country to charge 3% processing fees for withdrawals and 2% for deposits of amounts above N500, 000 for individual accounts.

Corporate account holders would be charged 5% processing fees for withdrawals and 3% for deposits of amounts above N3 million.

The transaction fees which took effect on September 18 were introduced to give vent to the Central Bank’s policy designed to reduce cash in use.

However the House of Representatives, during plenary on Thursday, asked the apex bank to suspend the charges until it had made due consultations with all relevant stakeholders.

Call for the suspension was contained in a motion unanimously adopted during Thursday’s plenary, which was moved by Chairman of the House Committee on Media and Public Affairs, Benjamin Kalu.

The motion was entitled, ‘Need to Suspend the Implementation of the Cashless Policy on Deposits by the Central Bank of Nigeria.’

READ ALSO: Bank customers to now pay charges on cash deposits and withdrawals

Upon the adoption of the motion, the lawmakers urged the CBN to “suspend the implementation of the cashless policy on deposits which has taken effect from Wednesday, 18th September, 2019, until appropriate and extensive consultative process is concluded.”

They also resolved to mandate the House Committee on Banking and Currency to interface with the CBN to “ascertain the propriety, relevance and the actual need for the implementation of that aspect of the cashless policy at this time, considering the prevailing economic situation of the country and to report back to the House within four weeks.”

Kalu, while moving the motion, said the house was against implementation of the policy as it would cause more hardships for Nigerians.

He said, “The House is deeply worried that the implementation of cashless policy on withdrawals has negative impacts on micro, mini, small and medium scale enterprises, which are clearly the engine room for growth of the economy and employment generation, thereby throwing many of them out of business and sending more Nigerians into poverty, forcing more traders and micro investors to carry cash about with its attendant security challenges.

“The House is aggrieved that while the impact of the cashless policy on withdrawals is still staring us all in our faces as well as other numerous burdensome charges by Nigeria’s Money Deposit Banks heavily impacting on businesses, the CBN deemed it necessary to impose the implementation of cashless policy on depositors ,without due consultations with all shades of stakeholders who will be impacted by the policy.

“The House is concerned that this overbearing burden aimed at closing down majority of micro, mini, small and medium businesses in Nigeria, is also aimed at enriching Nigeria’s Money Deposit Banks owned by a privileged few without any known financial contribution to the Consolidated Revenue Fund of the Federation”.

Ripples Nigeria

We are an online newspaper, very passionate about Nigerian politics, business and their leaders. We dig deeper, without borders and without fears.
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Ripples Nigeria

We are an online newspaper, very passionate about Nigerian politics, business and their leaders. We dig deeper, without borders and without fears.
www.ripplesnigeria.com

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