New CBN Withdrawal Limit Policy Will Harness Growth, Development – NIPC

The Nigerian Investment Promotion Commission (NIPC) has applauded the Central Bank of Nigeria (CBN), over its recent policy on cash withdrawal limit.

Recall that the apex bank, on Tuesday, announced a limit on cash withdrawals made by individuals and organisations with effect from January 9, 2023.
According to the apex bank, an over-the-counter cash withdrawals by individuals and corporate entities will not exceed N100,000 and N500,000, per week respectively.
While it directed that only N200 and lower denominations be loaded into banks’ ATMs, CBN said maximum cash withdrawal per week via ATM should be N100,000, subject to a maximum of N20,000 cash withdrawal per day.

On Thursday, the two chambers of the National Assembly, expressed concerns about the implication of the policy.

However, NIPC, while commending the CBN, said the policy will ensure easy and adequate circulation of money in the banking sector and the nation’s economy.

Chief Executive Officer of the Commission, Saratu Umar, made the position known on Thursday, while speaking with journalists during an interactive stakeholders forum with Ministries, Departments and Agencies (MDAs) in Abuja

Umar said the policy, if sustained, will harness growth and development in the banking sector for easy allocation and disbursement of funds by investors both locally and internationally.
“If the CBN is taking steps to ensure that it captures money back into the banking sector so that they can loan it to investors and other sectors, I don’t think there is a problem there.

“It is actually a positive development and we should be happy that an administration has been bold enough to implement it”, she said, adding that Nigeria has a lot of potentials that should not be developed from borrowing, but through leveraging on investment opportunities

Umar assured investors that NIPC will attract Foreign Direct Investment (FDI) to the global market where shares of FDI inflows are driven by effective, efficient and performance driven Investment Promotion Agencies (IPAs).

“With over 170 IPAs worldwide competing to channel FDI to their different countries, a compelling imperative is established that NIPC, as Nigeria’s IPA, is positioned to ensure that Nigeria gets a fair share of this global market.

“This is especially important with onset of Africa Continental Free Trade Area which is now in force with Nigeria having deposited its instrument of ratification since December 2020.

“In 2021, a UN report noted that FDI inflow into Africa grew by 147 percent, this has accentuated the race by African economies to showcase their investment climate reforms and business-friendly policies.”