Headlines
Senate to Question CBN Chiefs over Cash Withdrawal Limits Friday
The Senate will on Friday grill two deputy governors of the Central Bank of Nigeria over the cash withdrawal limit policy unveiled by the apex bank on Tuesday.
The red chamber planned to seek clarifications on the new directive which restricts over-the-counter cash withdrawal by individuals and organisations to N100,000 and N500,000, respectively, per week.
It also limits cash withdrawals via point-of-sale machines and automated teller machines to N20,000 daily and N100,000 weekly, respectively.
According to a memo signed Tuesday by the CBN’s Director of Banking Supervision, Haruna Mustafa, withdrawals above the thresholds would attract processing fees of five per cent and 10 per cent, respectively, for individuals and corporate entities going forward.
In addition, third-party cheques above N50,000 shall not be eligible for OTC payment while extant limits of N10m on clearing cheques still remain.
The circular also directed banks to load only N200 and lower denominations into their ATMs and restricted withdrawal to N20, 000 per day from ATMs.
The policy which will become effective on January 9, 2023, had generated criticisms but the CBN clarified on Wednesday that PoS operators could apply for waivers.
Deliberating on the policy on the floor of the Senate on Wednesday, senators said there was a need to debate the policy on the floor of the red chamber.
However, the Senate President, Ahmad Lawan, directed the Senate Committee on Banking to grill the two re-appointed deputy governors of the CBN, Aisha Ahmad, and Edward Adamu, who will be screened on Friday, on the new cash withdrawal policy.
Senators raise motion
The resolution on the new CBN policy followed a move by Senator Philip Aduda (PDP FCT) to move a motion on the development.
Aduda had sought to rally other senators to deliberate on the policy but the Senate President, Lawan, interrupted him, saying it was too early to debate the circular.
Also, Senator Gabriel Suswam (PDP Benue North-East) supporting his colleague and pushed that the motion should be allowed to fly considering the innocent Nigerians that would be affected by the CBN policy.
Addressing Lawan, he said, “I think you should have allowed us to discuss this motion for the sake of Nigerians.”
But Lawan, who appeared not to favour the move, stopped Aduda and Suswam, saying, “No, distinguished (Senators), there is a misunderstanding here. I told you what my personal opinion is. My personal opinion is that this weekend is off. Maybe but we have an opportunity; the Committee on Banking will be screening two deputy governors of the CBN. This is one major issue they should raise with them.
“As good as the cashless policy may be, it shouldn’t be jumped at, at once. The way the CBN is going about the policy, many Nigerians would be cut off and that won’t be accepted. Motion on the policy will be thoroughly debated in the Senate on Tuesday next week after adequate information has been gotten on it.”
Lawan noted that the newly re-appointed deputy CBN governors would be screened between Thursday and Monday so that by Tuesday, they would have been equipped with enough information to raise a motion in support or shoot down the policy.
He said, “Before Tuesday next week, our committee on Banking, Insurance and other Financial Institutions mandated to screen the re – appointed deputy governors of the Central Bank should focus its questions on the planned policy.
“The CBN deputy governors must be thoroughly grilled on the policy after which extensive debate on it will be made by Senators on Tuesday next week.”
However, the lawmaker representing Kaduna Central and Chairman, Senate Committee on Banking, Insurance and other Financial Instructions, Senator Uba Sani confirmed to The PUNCH that the CBN deputy governors would be screened on Friday.
He said, “We are working on their letters, the letters will be served tomorrow (Today) and the deputy governors of the CBN will be screened on Friday.’’
The Punch
President Bola Tinubu, on Wednesday, presented the Appropriation Bill of the Federal government for the year 2024 tagged ‘Budget of Renewed Hope’ to a joint session of the National Assembly.
This is the president’s first budget presentation to the National Assembly since assuming office on May 29.
The President arrived at the National Assembly for the presentation of the 2024 budget at about 11:09 am accompanied some ministers and aides. and senior officials.
He was led into the chamber of the House of Representatives for the presentation of the N27.5trillion Appropriation Bill to a joint session of the National Assembly which began after the rendition of the National Anthem and opening prayers.
The Federal Executive Council (FEC)on Monday approved N27.5 trillion as the 2024 budget estimate.
It will be recalled that Tinubu had about three weeks ago forwarded the 2024-2026 Medium Term Expenditure Framework ( MTEF) and Fiscal Strategy Paper ( FSP), proposing an expenditure of N26.1 for the 2024 fiscal year.
After two weeks of deliberations and interface with heads of Ministries, Departments and Agencies on the revenue and expenditure projections, the Senate through its Committee on Finance approved the MTEF.
It specifically approved the N26.1 trillion proposed as 2024 budget and other parameters proposed by Tinubu.
It also approved new borrowings of N7.8 trillion, while pegging the oil price benchmark for 2024 at $73.96 and oil production at 1.78 million barrels per day.
Other parameters approved are GDP growth rate of 3.76 per cent, the inflation rate of 21.40 per cent, a suggested benchmark exchange rate of N700 to $1 and a projected budget deficit of N9.04 trillion.
The Supreme Court, on Wednesday, said both the old and the new resigned naira notes remain legal tender till further notice.
The apex court, in a ruling by a seven-man panel of justices led by Justice John Okoro, said the banknotes should remain in circulation, pending when the Federal Government, after due consultation with relevant stakeholders, takes a decision on the matter.
It made the order, after it heard an application that was moved on behalf of the federal government by the Attorney-General of the Federation and Minister of Justice, Prince Lateef Fagbemi, SAN.
It will be recalled that the court had on March 3, nullified the ban on use of the old N200, N500 and N1000 banknotes as valid legal tenders by the President Muhammadu Buhari-led administration.
The court held that the old Naira notes should be used alongside the redesigned currencies, until the end of the year.
In its lead judgement that was prepared and delivered by Justice Emmanuel Agim, the apex court slammed FG for unilaterally introducing the demonitization policy, through the Central Bank of Nigeria, CBN, without consulting the Council of States, the Federal Executive Council, the National Security Council, the National Economic Council, Civil Society Organizations and other relevant stakeholders.
It held that FG failed to give valid notice to all the federating units, before it decided to withdraw the old banknotes from circulation and introduce new ones.
The cupreme court maintained that evidence before it established that a purported notice on the monetary policy was through “mere press remarks” by governor of the CBN, Mr. Godwin Emefiele.
It held that such remarks did not qualify as “reasonable notice” to the states as envisaged under section 20(3) of the CBN Act.
Besides, the court invalidated the directive President Buhari gave in the broadcast he made on February 16, which allowed only the old N200 note to remain a legal tender till April 10.
While accusing President Buhari of disobeying the interim order it made on February 8, which directed that the old banknotes should remain in use till the determination of the case before it, the apex court stressed that the President, by going ahead to ban the old banknotes, acted in a way that was inimical to democratic governance.
According to the court, having acted in disobedience to its order, FG lost its right to be granted audience before it.
Following the end of the last administration, the President Bola Tinubu-led government re-approached the apex court for an indefinite extension of its December 31 deadline.
The National President of the Nigeria Union of Pensioners (NUP), Mr. Godwin Abumisi, has cried out to President Bola Tinubu that the removal of fuel subsidy has brought pains, frustration, and hardship to average pensioners in the country.
Abumisi said this in Akure, the Ondo State capital, at the opening of National Executive Council (NEC) meeting of the union.
He appealed to the Federal government not to renege on its promise to include pensioners in the N25,000 cash award announced to cushion the economic hardship of the petrol subsidy removal, in order to assuage the pains of his members.
The National President, who lamented that the petrol subsidy removal has further impoverished pensioners, urged the Federal government to fulfill its promise to the pensioners.
He said: “The Pensioners’ Day this year was celebrated on the 5th of October, 2023 in line with the declaration of the day as the Older Persons’ Day by the Federal government.
“We addressed a world press conference and demanded the inclusion of pensioners in the N25,000 cash award announced by the Federal Government.
“Immediately after this, we met with the Hon. Minister of Humanitarian Affairs, Dr. Betta Edu and it is our hope that the list submitted will be treated with the needed zeal.
“This is why the theme of this year’s NEC meeting “Effect of Subsidy Removal on an Average Pensioner” is very apt and explicit.
“Without mincing words, the subsidy removal has brought with it pains, frustration and hardship to average Nigerians, including the pensioners.
“In the light of this, we wish to use this occasion to passionately appeal to both the Federal, State and Local Governments to do something very fast to assuage the pains of our members and other vulnerable Nigerians.”
The national president said that its members have been struggling and battling for financial survival.
Abumisi pointed out that if the palliatives are religiously implemented to the letter on record time devoid of the usual bureaucratic bottlenecks, it will go a long way to calm down frayed nerves of its members.
Also speaking, the Ondo State Chairman of the union, Johnson Osunyemi, who pledged their support and loyalty to the National Headquarters, promised to always operate in accordance with the spirit and constitution of the union.
Osunyemi lauded the Ondo State governor, Rotimi Akeredolu, for giving priority to the welfare of pensioners in the State.
“Distinguished pensioners, although we still tremble under the cumbersome yoke of unpaid gratuities, we have decided to celebrate our governor today because he paid all the arrears of pensions he inherited from his predecessor.
” Equally, he has implemented all the increase in our pensions.
“Incidentally, and sadly too, his promises to ease the problems of pensioners are being encumbered by ill-health.
” As a parting request by the host council to our guests, we appeal to you to kindly join us in praying for the quick recovery of our kind and God-fearing governor.
The State governor, Rotimi Akeredolu, said that as part of his admission’s commitment to the welfarism of pensioners, monthly pensions are being paid as at when due while government priorities allocation of substantial amount of money for payment of gratuities.
Akeredolu was represented by his Special Adviser on Union Matters and Special Duties, Mr. Dare Aragbaye.
An award of excellence was presented by the pensioners to governor Akeredolu, NLC Vice President, Comrade Sunday Adeleye; the State Commissioner for Finance, Wale Akinterinwa among others.
