Nigeria: Suspend Implementation of Cashless Policy On Deposits, House Tells CBN

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(file photo).
20 September 2019

Abuja — The House of Representatives has advised the Central Bank of Nigeria (CBN) to suspend the implementation of the cashless policy on deposits, until appropriate and extensive consultative process is concluded.

After adopting a motion of urgent national importance moved by the Chairman, House Committee on Media and Publicity, Hon. Benjamin Okezie Kalu on the need to suspend the implementation of the policy, the CBN was cautioned against implementing the policy by House.

The House also mandated its 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 argued that "the implementation of cashless policy in Nigeria so far, has led to significant decrease in deposit mobilisation and credit extension by Nigerian money deposit banks," and that "the implementation of cashless policy on withdrawals has negative impacts on micro, mini, small, and medium enterprises."

He noted that these were the engine rooms for growth of the economy and employment generation, adding that the policy would throw many of them out of business and send more Nigerians into poverty, forcing more traders and micro investors to carry cash about with the attendant security challenges.

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