CBN Cash Limit: Court Refuses To Stop Implementation

A Federal High Court in Abuja has refused a motion seeking to stop the new cash withdrawal policy of the Central Bank of Nigeria, CBN.

Last month, the Godwin Emefiele-led CBN announced daily and weekly cash withdrawal limits for individuals and organizations.

In the memo sent to commercial banks and other financial institutions, OFI, the bank directed that over-the-counter cash withdrawals by individuals and corporate entities should not exceed N100, 000 and N500,000, respectively, per week.

But in an application brought before the court by 10 named applicants for themselves and on behalf of 20 million Nigerian citizens who do not use banks, the applicant urged the court stop the CBN from implementing the policy.

Joined in the suit are President Muhammadu Buhari, Attorney-General of the Federation; CBN, and the Governor of the Central Bank of Nigeria, Godwin Emefiele as respondents.

The applicants prayed the court to grant injunctions restraining the respondents from proceeding with the January 31, 2023, deadline of the use of the current N200, N500 and N1,000 notes as it affects the citizens without any real plans or workable guidelines to cover the over 20 million unbanked Nigerians who are vulnerable to information and the use of technologically driven platform without the possibility of financial inclusion.

They also prayed for an order restraining the CBN from implementation of the revised cash withdrawal limiting the maximum cash withdrawal over the counter by individuals and corporate organisations per week to N100, 000 and N500, 000 respectively which was a violation of the  Money Laundering (Prevention and Prohibition Act, 2002 and which also constitutes a flagrant violation of the fundamental rights of the applicants as guaranteed under the 1999 Constitution as well as the African Charter on Human and Peoples Rights (Ratification and Enforcement) Act.

The applicants also prayed the court to grant an order for accelerated hearing to the suit and also an order for substituted service on the parties while also praying for the order of court mandating the CBN to produce a detailed plan and guidelines covering the over 20 million unbanked citizens who are vulnerable to the use of telecommunication and technologically driven money platforms.

After listening to the counsel to the applicants, Justice Oriji declined the prayers for injunction. The judge, however, directed that all the respondents be put on notice to come and show cause why the order for injunction should not be granted.

Justice Orji further adjourned the matter to January 10, 2023, after granting orders for accelerated hearing and substituted service.

On Wednesday, the Senate again urged the apex bank to “considerably adjust the withdrawal limits” in response to public outcry on the policy.