Reps probe CBN over scarcity of naira notes

The House of Representatives on Tuesday unveiled plans to investigate the activities of the Central Bank of Nigeria (CBN) which resulted in scarcity of naira notes across the country.

The resolution was passed sequel to the adoption of a motion on matter of urgent public importance on the urgent need to address the hardship caused by the cash crunch in Commercial Bank in Nigeria, sponsored by Hon. Uguru Emmanuel, who solicited for the House intervention.

In his lead debate, Hon. Uguru expressed grave concern over the impacts of the policies bothering on various economic indicators include measures of macroeconomic performance, that is; gross domestic product, consumption, investment, money supply, international trade among others.

“The House is cognizant that one of the major factors that stimulate economic growth is Consumer spending and business investment.

“The House is also cognizant that cash supply shortage in Commercial Banks have dire consequences on individuals and the nation’s economy.

“The House is aware that on 21st December, 2022, the Central Bank of Nigeria by a policy contained in a circular number BSD/DIR/PUB/LAB/015/073 reviewed the cash withdrawal limits across all channels to N500,000 and N5,000,000 for individuals and Corporate entities respectively, and which is not known to have been repealed.

“The House is concerned that the Commercial Banks in the Country have jettisoned this policy as they can hardly give N50,000 to even current account holders.

“The House is disturbed that the cash crunch in Commercial Banks in the Country has become a clog in the wheel of economic activities, as entrepreneurs are subjected to long queue and sometimes spent a whole day or two in the Bank with loss of man-hour only to get N10,000 and in most cases go back home with nothing, subjecting these class of persons who have no access to point of sale (POS) that is mostly not applicable in some articles of trade especially in the rural areas to hopelessness.

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“These therefore causes untold hardship to this uninformed populace most of whom are rural dwellers we are representing, hence this cry to protect their interest, as lives could even be lost for lack of funds (cash) to take their sick ones to hospital and sometimes nothing to buy food with.

“The House is alarmed that while the Commercial Banks have no money to dispense, the POS operators have in their disposals up to N1 million in mint to sell to their cronies and the public, and the pertinent question is: where do they get the money from?

“The House is worried that if the Central Bank of Nigeria continue to starve Commercial Banks of cash, especially as we approach the yuletide season, many people and even businesses will be frustrated and people plunged into untold hardship.”

In the bid to address public concerns, the House mandated its Committee on Banking Regulations to investigate the matter and report back to the House in one week.

To this end, the House directed Central Bank of Nigeria to immediately address this issue of cash crunch in the Commercial Bank in the country if it is not responsible.

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