The presidential candidate of the African Democratic Congress (ADC), Dumebi Kachikwu, on Monday, faulted the Central Bank of Nigeria (CBN) for its recent policy on withdrawal limits, IgbereTV reports
The CBN had ordered Deposit Money Banks (DMOs) and other financial institutions to ensure that weekly over-the-counter (OTC) cash withdrawals by individuals and corporate entities do not exceed N100,000 and N500,000, respectively.
The apex bank said the regulatory directives take effect nationwide from January 9, 2023. The CBN also fixed daily maximum withdrawals via point of sale (PoS) terminals at N20,000.
But Kachikwu, who made a live appearance, accused the CBN of using “cosmetic measures” to address what he described as the country’s failing economy.
“Unfortunately, what is happening is that we are using cosmetic measures to address the failings in our economy, instead of tackling it head-on and coming up with solutions that will ginger (and) bring back our economy to life,” he said.
The entrepreneur drew a connection between the policy and an instance of widely circulated “fake news” alleging that the United States government was withdrawing dollars in circulation in Africa because of corruption and politicians.
As a result, according to him, the bureaux de change in the country stopped collecting dollars.
“That’s why the naira seemed to appreciate for a period of time. It’s not gotten back to the N800 and above since then. What was happening prior to this? There was a run on the banks; we had a lot of the middle class taking out their money from deposit money banks and they were leaving Nigeria.
“People didn’t have any trust in the economy anymore and people were taking out their money, buying foreign exchange, and leaving Nigeria in droves. So, what the CBN has done is what you call ‘wag the dog’ – essentially do something to distract the attention of the people from what the real issues are.
“They don’t want a run on the banks because a run on the banks will lead to panic in the financial system, and it will lead to a total collapse of the economy, which is why they have come up with this policy. And what does it do? It restricts you from taking your money out of the banking system, which is reversing what was going on,” he said.
