The Central Bank of Nigeria (CBN) says the cash withdrawal limit policy was not made based on political reasons.
Aisha Ahmad, CBN deputy governor, financial systems stability, spoke on Thursday while fielding questions from members of the house of representatives during plenary.
The apex bank had reduced the weekly over-the-counter cash withdrawal limit for individuals to N100,000 and that of corporate organisations to N500,000.
The bank also reduced the withdrawal limit at automated teller machines (ATMs) and point-of-sale terminals to N20,000 per day.
The CBN has been roasted by critics since it announced the policy. While many argued that it would subject rural dwellers to more hardship, others said the bank’s decision to limit cash withdrawals was targeted at politicians ahead of the 2023 general elections.
Following the seething pressure mounted on the CBN, the apex financially institution succumbed on Wednesday — increasing the withdrawal limit for individuals and organisations to N500,000 and N5 million, respectively.
Speaking on the matter on Thursday, Ahmad said the CBN as an independent institution does not make policies based on political consideration.
“I have to make it very clear that the CBN is an independent institution and our decisions are taken based on research — it is the work of many teams working together across the different directories,” she said.
“On this issue, we had teams from banking supervision, payment system, and currency management across the entire bank and it is then brought up and we make a decision.
“At no time do we make a decision based on any political consideration. I must state that.”
She added that the new policy will limit the costs associated with moving cash as well as tackle terrorism financing.
