Controversy over the proposal by the Central Bank of Nigeria (CBN) and the bankers’ committee to limit cumulative daily cash withdrawals and lodgements in the country from June next year continued to play out as yesterday, the House of Representatives summoned the Central Bank of Nigeria (CBN) governor, Malam Sanusi Lamido Sanusi, to appear before it to give explanations on the contentious proposal.
To contain the increasing dominance of cash in the Nigerian economy, CBN had pegged daily cumulative withdrawals and lodgements in banks by individuals effective from June 1, 2012 at N150, 000 and also restricted the daily cumulative withdrawals and lodgements by corporate customers from the same period at N1, 000, 000.
This move by the CBN is being contested before an Abuja Federal High Court, seeking to have it quashed.
Sanusi is also expected to explain to the lawmakers the equally contentious CBN decision to permit non-interest banking (Islamic Banking) in Nigeria. Broadly defined, non-interest banking prohibits giving or receiving interest. The key features are deposits in the form of quasi-capital, earnings from financing, investment in an underlying asset for onward leasing or sale, revenue generated from lease rentals or share of profits on sales and returns from depositors who participate in the share of profits and losses of the bank.
Representative Aliyu Yakubu (Yobe/PDP), in his motion on the proposed cash withdrawal limit, expressed fear that the move would cause Nigerians undue hardship, especially in communities without commercial banks and Automated Teller Machines (ATM).
“This policy will affect our local farmers and traders who do not have banks in their localities and therefore is not practicable on market days,” he argued.
Before resolving to invite Sanusi, the motion sought, to among other things, urge the CBN to extend the deadline of six months to a minimum of one year, to enable the communities acquire banks and cultivate banking habits.
Taking the decision to invite the CBN governor, House speaker, Aminu Waziri Tambuwal said, “We need more information so as to make an informed decision on the issues.”
Sanusi is to appear on Thursday by 10.00 am.