The House of Representatives on Thursday directed the Central Bank of Nigeria (CBN), to suspend the directive mandating financial institutions to levy charges on cash-based transactions.
In a motion moved by Hon. Benjamin Kalu (APC, Abia), the House of Reps explained that the policy may have “negative impacts on micro, mini, small and medium enterprises.”
According to Hon. Kalu, this situation may come with the attendant consequences of security challenges due to business owners resorting to carrying cash rather than banking it.
The House of Reps further criticized the CBN of not prioritizing the needs of the citizenry before promulgating the directive “even as Section 14(2)(b) of the Constitution provides for the security and welfare of the people.”
As a result; the House urged the CBN to “suspend the implementation of the cashless policy on deposits until extensive consultative process is concluded.”
It also mandated the Committee on Banking and Currency to investigate the policy and report to the House in 4 weeks.
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 will also be charged 5% processing fees for withdrawals and 3% for deposits of amounts above N3 million.
The CBN revealed that the charges will only apply in Lagos; Ogun; Kano; Abia; Anambra; Rivers; as well as the Federal Capital Territory (FCT).