THE House of Representatives on Thursday directed the Central Bank of Nigeria (CBN) to put on hold   the charges imposed on cash deposits in the implementation of its cashless policy.

The apex bank, had in a circular dated September 17, 2019 titled, Re: Implementation of the Cashless Policy, addressed to all Deposit Money Banks directed that as from September 18, lodgment of cash by individuals that is above N500,000 will attract 3 per cent processing fees for withdrawal and 2 per cent processing fees for lodgments.

For corporate bodies, it said, withdrawal or deposit above N3million will attract 5 percent processing fees or 3 per cent processing fees.

CBN said the directive will be effective in Lagos, Kano, Ogun, Abia, Anambra, Rivers and the Federal Capital Territory (FCT) while the full implementation of the cashless policy will become effective March 31, 2020, the document signed by Sam Okojere, Director, Payments System Management Department.

However, the House of Representatives while calling for the stoppage of the implementation of the policy, said the suspension would remain until CBN has carried out due consultations with all relevant stakeholders.

The call for the suspension of the cashless policy which has been greeted by criticism since Tuesday was contained in a motion unanimously adopted during Thursday’s plenary, which was moved by Chairman of the House Committee on Media and Public Affairs, Benjamin Kalu.

Kalu’s motion was titled: “Need to Suspend the Implementation of the Cashless Policy on Deposits by the Central Bank of Nigeria,” and was adopted by other lawmakers who all agreed that the CBN should “suspend the implementation of the cashless policy on deposits, until appropriate and extensive consultative process is concluded.

According to the PUNCH, the lawmaker said the House was against implementation of the policy as it would cause more hardships for Nigerians.

“The House is deeply worried that the implementation of cashless policy on withdrawals has negative impacts on micro, mini, small and medium scale enterprises, which are clearly the engine room for growth of the economy and employment generation, thereby throwing many of them out of business and sending more Nigerians into poverty. forcing more traders and micro investors to carry cash about with its attendant security challenges,” he said.

“The House is aggrieved that while the impact of the cashless policy on withdrawals is still staring us all in our faces as well as other numerous burdensome charges by Nigeria’s Money Deposit Banks heavily impacting on businesses, the CBN deemed it necessary to impose the implementation of cashless policy on depositors ,without due consultations with all shades of stakeholders who will be impacted by the policy.

“The House is concerned that this overbearing burden aimed at closing down majority of micro, mini, small and medium businesses in Nigeria, is also aimed at enriching Nigeria’s Money Deposit Banks owned by a privileged few without any known financial contribution to the Consolidated Revenue Fund of the Federation.”

According to him, the policy on cash-based transactions (withdrawals) in banks was aimed at reducing and not eliminating the amount of physical cash (coins and notes) circulating in the economy, and encouraging more electronic-based transactions, including payments for goods and services, and transfers.

The lawmaker explained that the cashless policy was introduced for a number of key reasons, including the need to drive development and modernisation of the country’s payment system, in line with Nigeria’s Vision 2020 goal of being amongst the top 20 economies by the year 2020.

The goal, according to Kalu, is to reduce the cost of banking services, including cost of credit, and drive financial inclusion by providing more efficient transaction options and greater reach.

In addition to the suspension of the policy, the lawmakers also charged the House Committee on Banking and Currency to interface with the CBN to “ascertain the propriety, relevance and the actual need for the implementation of that aspect of the cashless policy at this time, considering the prevailing economic situation of the country and to report back to the House within four weeks.”