Cash Withdrawal Limit: Kachikwu accuses the CBN of using cosmetic measures to address economic failures

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African Democratic Congress suspends its presidential candidate, Dumebi Kachikwu


The presidential candidate of the African Democratic Congress (ADC), Dumebi Kachikwuguilty of Central Bank of Nigeria (CBN) of its recent policy on cash withdrawal limits, accusing it of using cosmetic measures to address economic failure.

Kachikwu made this known while appearing on a Channels Television programme, Politics Today, on Monday evening.

More on the indictment: Kachikwu alleged that the CBN introduced this new cash withdrawal limit in its no-fee policy to prevent possible bank-runs that could lead to panic in the financial system and then a total collapse of the economy. Kachukwu said:

  • Unfortunately, what is happening is that we are using cosmetic measures to address the failures of our economy, instead of addressing them and creating solutions that will improve (and) restore our economy.’

The presidential candidate draws a connection between policy and an example that has been widely circulated “fake news” saying that the United States government is withdrawing dollars from circulation in Africa because of corruption and politicians.

Because of this, according to him, the country’s bureaux de change stopped collecting dollars.

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  • “That is why the naira seems to have appreciated over a period of time. It has not gone back to N800 and above since then. What happened before this? There is a flow of banks; we have a lot of middle class who withdraw their money from money bank deposits and they leave Nigeria.

No more trust: Speaking further, Kachukwu admitted that Nigerians no longer trust the economy. He said:

  • “People have lost confidence in the economy and people are taking their money, buying foreign exchange, and waiting to leave Nigeria. So, what CBN has done is what you call ‘wag the dog’ – essentially doing something to distract people from what the real issues are.
  • “They don’t want to run the banks because a run on the banks will lead to a panic in the financial system, and it will lead to a total collapse of the economy, so they made this policy. And what does it do? It prevents you from taking your money out of the banking system, which reverses what happened.”

In addition, Kachikwu in his analysis said that the policy of the CBN is similar to that of Greece, Lebanon, Zimbabwe, and Venezuela, among others. According to him, when economies fail, central banks restrict access to money.

  • What’s annoying to me is that you attribute it to politics, people keeping money in their vaults, vote buying, and what have you.,” he said. “I’m not saying it doesn’t exist – it exists. But do you know what it means to save N5 billion or N10 billion or even transfer N100 million in cash? The amount of that money? Should that be transferred to the bullion vans?”

For arrest: Remember that on December 6, 2022, the CBN in a new circular set a limit on over-the-counter cash withdrawals, Automated Teller Machine (ATM) withdrawals, and point of sale (PoS) withdrawals.

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  • The apex bank in a memo directed all banks and other financial institutions to ensure that over-the-counter cash withdrawals by individuals and corporate entities do not exceed N100,000 and N500, 000, per week.
  • It also mandated that only N200 and lower denominations should be loaded into ATMs in banks.
  • After the policy comes into effect on January 9, 2023, across the country, all cash withdrawals above the stated limits will attract a processing fee of 5% and 10%, respectively.
  • The policy, however, has received praises and knocks from Nigerians and various interest groups with critics suggesting that the full implementation of this initiative will stifle micro and small businesses.

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