The bid to re-introduce cashless policy has suffered a setback following the rejection of the programme by the House of Representatives. On Thursday the House by a resolution directed the Central Bank of Nigeria (CBN) to suspend the policy.
At plenary on Thursday the House said the policy will lead to a significant decrease in credit extension by Nigerian money deposit banks.
The lawmakers also said the policy will have negative impacts on small and medium enterprises “which are clearly the engine room for growth of the economy”.
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 be charged 5% processing fees for withdrawals and 3% for deposits of amounts above N3 million.
The directive was, however, criticised by some Nigerians for various reasons. Meanwhile, the resolution by the House is not binding on the CBN. It’s advisory.