CBN’S withdrawal limit and electioneering campaign

Nigeria, the most populous country in the African continent, is no doubt facing series of challenges currently, including insecurity, poor economy, leadership and followership problem.

President Muhammadu Buhari has been rolling out series of policies few months to the expiration of his administration. The policies, which are majorly financial, are coming at a time political parties and politicians are neck-deep in electioneering campaigns. Campaigns and elections are money-gulping adventure.

The recent policy raising controversy is the withdrawal limit imposed by the Central Bank of Nigeria (CBN). When the policy takes effect on January 9, 2023, Automated Teller Machines will no longer dispense Nigeria’s high denominations of 1,000 naira and 500 naira. They will be loaded with N200, N100 and N50. ATM and POS terminals have also been limited to 20,000 naira per day for withdrawal. This has been criticized by many financial analysts.

Policymakers and financial analysts are of the opinion that withdrawal limits and recent monetary policy from the Nigerian apex bank would bring people closer to the banking system and reduce, if not curbing naira hoarding, inflation, illicit flow of cash and other corrupt practices in the banking system.

Recently, the Governor of Adamawa State, Ahmed Fintiri said the policy if implemented will further throw the country into abject poverty. He also stated that the naira withdrawal limit is targeted at the members of the political class.

Some of the policies approved by President Muhammadu Buhari at tale of his administration especially naira withdrawal limit, 2023 National Population Census and proposed subsidy removal should be critically scrutinised by the National Assembly, so that the challenges being currently faced by Nigerians will not be passed to the unborn generations. It is not out of place to say the giant of Africa is in serious mess.

Oludamilola Oluwole, Ibadan