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Senates pleads with CBN to make upward adjustments of planned cash withdraw limits

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3 years ago

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Senate has made a passionate appeal  to Central Bank Of Nigeria to consider an upward review of the cash withdrawal limits. Senators urged the apex bank to make upward  adjustment of  the proposed N100, 000 per week for  individual and N500, 000 per week for Corporate bodies in response to public outcry. Senators were however sharply divided over the plans by the Central Bank of Nigeria to  limit cash withdrawal by any individual to N100,000 and Corporate bodies to N500,000 per week from January 9, 2023 as they kicked against the timing. Senators who kicked against the proposed policy, said that Nigeria was not ripe for it as the rural people would suffer, describing it as nonsensical, vague, nebulous and anti- people, just as they warned  that it may lead to mass revolt in the rural areas across the country.

As a result the Senate has mandated its Senator Uba Sani, led Committee on Banking, Insurance and other Financial Institutions to embark on aggressive oversight of the Bank on its commitment to flexible adjustment of the withdrawal limit and periodically report outcome to the Senate; The Senate however  supported  the CBN in the continuous implementation of transformational payments and financial industry initiatives in line with its mandate in accordance with the CBN Act. Resolutions of the Senate were sequel to the adoption of the report of  Banking, Insurance and other Financial Institutions after heated debate by Senators on the  proposed policy after the presentation by the Chairman. In his presentation of the report, Senator Uba Sani argued that the planned Cash  Withdrawal Limits was well conceived by the CBN for transformation of the Nation’s economy and that the action falls within the  mandate of the Apex bank as provided for in section 2(d) and 47 of its extant Act. According to him, the implementation of the Cashless policy in 6 states resulted in reduction in the cost of currency management by 15.20% from N36 97 billion to N31.35 billion between 2013 and 2014. The trend however reversed in 2014 following the suspension of cash deposit charges in the six states currency handing cost increasing by 17.20% between 2014 and 2015 following the suspension. The cost of currency management has been on the increase since then, Total cost of currency management for 10 months to end October 2022 was N47.25 billion. 

During debate on the  report and recommendations that were later  adopted as resolutions,  Senator Ajibola Basiru, who said that  the proposed threshold of N100,000 and N500, 000 withdrawal per week for individuals and corporate bodies respectively was unrealistic, said, ” Laws are made for people and not people made or created for law . If CBN is acting under section 2(d) and 47 of its extant Act to make life difficult for Nigerians through a policy , as representatives of the people ,we need intervene. “Such intervention from us is to make  CBN realise that  the proposed Cash withdrawal limits policy is unrealistic and very injurious and detrimental to the well-being of rural dwellers , many of whom are our constituents. Report of this committee recommending the policy to us and by extension, to Nigerians through suggestion of flexibility in implementation is vague, nebulous and means nothing.”

Also kicking against the planned policy, Senator Adamu Aliero, said that the picture painted by the committee in its report on the proposed CBN policy was nothing,  but an idea picture of what economy should be which is far cry from what economy is , in reality as far as Nigeria is concerned. Aliero said, “the proposed CBN policy does not capture  the informal sector and very detrimental to the livelihood of rural dwellers who are not into e – banking. Public outcry against the policy is too much , requiring serious caution as far as implementation is concerned because Nigeria economy is predominantly rural.” Also calling for the jettisoning of the plan, Senator Adamu Bulkachuwa, who warned that the proposed policy , if not suspended , may trigger revolt from rural dwellers, said that the recommendations made by the Senate Committee on Banking on the policy  which were  later adopted as resolutions,  made no sense to him.

He said, “Senate committee recommendations on the proposed CBN policy, is nothing but trying to put wool in the eyes of Nigerians.” The Senate Chief Whip, Senator Orji Uzor Kalu,  a member of the Committee who  signed the adopted report on the proposed policy, kicked against it in his contribution, saying he appended his signature in order not to rock the boat. Kalu  said, “N100, 000 per week for individuals and N500,000 per week for corporate bodies , are  too small. The N500, 000 per day for individuals l and N3million per day for corporate bodies being implemented in Abia , Lagos , Ogun, Rivers , FCT  etc , should be sustained across the country for now “ Other Senators who kicked against implementation of the policy as planned from  January 9, 2023, were Biodun Olujimi, Chukwuka Utazi, Stella Oduah, Ibrahim Hassan and Hadeija, Francis Fadahunsi.

Olujimi called for consultation with Stakeholders like the Senate before policies like these are brought up for the people, saying that the timing is wrong against the backdrop of next year’s presidential and general elections, adding that there should be flexibility. But Senators Yusuf A Yusuf, Degi  Eremienyo, and  Francis Alimikhena, supported it in their separate contributions, even as Alimikhena urged that the policy should be tested first and be given the chance to survive and thrive. 

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Economy

Nigeria champions African-Arab trade to boost agribusiness, industrial growth

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1 day ago

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December 5, 2025

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The Arab Africa Trade Bridges (AATB) Program and the Federal Republic of Nigeria formalized a partnership with the signing of the AATB Membership Agreement, officially welcoming Nigeria as the Program’s newest member country. The signing ceremony took place in Abuja on the sidelines of the 5th AATB Board of Governors Meeting, hosted by the Federal Government of Nigeria.

The Membership Agreement was signed by Eng. Adeeb Y. Al Aama, the CEO of the International Islamic Trade Finance Corporation (ITFC) and AATB Program Secretary General, and H.E. Mr. Wale Edun, Minister of Finance and Coordinating Minister of the Economy, Federal Republic of Nigeria. The Agreement will provide a strategic and operational framework to support Nigeria’s efforts in trade competitiveness, promote export diversification, strengthen priority value chains, and advance capacity-building efforts in line with national development priorities. Areas of collaboration will include trade promotion, agribusiness modernization, SME development, businessmen missions, trade facilitation, logistics efficiency, and digital trade readiness.

The Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, called for deeper trade collaboration between African and Arab nations, stressing the importance of value-added Agribusiness and industrial partnerships for regional growth. Speaking in Abuja at the Agribusiness Matchmaking Forum ahead of the AATB Board of Governors Meeting, the Minister said the shifting global economy makes it essential for African and Arab nations to rely more on regional cooperation, investment and shared markets.

He highlighted projections showing Arab-Africa trade could grow by more than US$37 billion in the next three years and urged partners to prioritize value addition rather than raw commodity exports. He noted that Nigeria’s growing industrial base and upcoming National Single Window reforms will support efficiency, investment and private-sector expansion.

“This is a moment to turn opportunity into action”, he said. “By working together, we can build stronger value chains, create jobs and support prosperity across our regions”, Edun emphasized. “As African and Arab nations embark on this journey of deeper trade collaboration, the potential for growth and development is vast. With a shared vision and commitment to value-added partnerships, we can unlock new opportunities, drive economic growth, and create a brighter future for our people.”

Speaking during the event, Eng. Adeeb Y. Al Aama, Chief Executive Officer of ITFC and Secretary General of the AATB Program, stated: “We are pleased to welcome Nigeria to be part of the AATB Program. Nigeria stands as one of Africa’s most dynamic and resilient economies in Africa, with a rapidly expanding private sector and strong potential across agribusiness, energy, manufacturing, and digital industries. Through this Membership Agreement, we look forward to collaborating closely with Nigerian institutions to strengthen value chains, expand regional market access, enhance trade finance and investment opportunities, and support the country’s development priorities.”

The signing of this Agreement underscores AATB’s continued engagement with African countries and its evolving portfolio of programs supporting trade and investment. In recent years, AATB has worked on initiatives across agribusiness, textiles, logistics, digital trade, export readiness under the AfCFTA framework, and other regional initiatives such as the Common African Agro-Parks (CAAPs) Programme.

With Nigeria’s accession, the AATB Program extends it’s presence in the region and adds a key partner working toward advancing trade-led development and fostering inclusive economic growth.

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Economy

FEC approves 2026–2028 MTEF, projects N34.33trn revenue 

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2 days ago

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December 4, 2025

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Federal Executive Council (FEC) has approved the 2026–2028 Medium-Term Expenditure Framework (MTEF), a key fiscal document that outlines Nigeria’s revenue expectations, macroeconomic assumptions, and spending priorities for the next three years. The approval followed Wednesday’s FEC meeting presided over by President Bola Tinubu at the State House, Abuja. The Minister of Budget and Economic Planning, Senator Atiku Bagudu made this known after the meeting.

The Minister said the Federal Government is projecting a total revenue inflow of N34.33 trillion in 2026, including N4.98 trillion expected from government-owned enterprises. Bagudu said that the projected revenue is N6.55 trillion lower than earlier estimates, adding that federal allocations are expected to drop by about N9.4 trillion, representing a 16% decline compared to the 2025 budget.

He said that statutory transfers are expected to amount to about N3 trillion within the same fiscal year. On macroeconomic assumptions, FEC adopted an oil production benchmark of 2.6 million barrels per day (mbpd) for 2026, although a more conservative 1.8 mbpd will be used for budgeting purposes. An oil price benchmark of $64 per barrel and an exchange rate of N1,512 per dollar were also approved.

Bagudu said the exchange rate assumption reflects projections tied to economic and political developments ahead of the 2027 general elections. He said the exchange rate assumption took into account the fiscal outlook ahead of the 2027 general elections.

The minister said that all the parameters were based on macroeconomic analysis by the Budget Office and other relevant agencies. Bagudu said FEC also reviewed comments from cabinet members before approving the Medium-Term Fiscal Expenditure Ceiling (MFTEC), which sets expenditure limits. Earlier, the Senate approved the external borrowing plan of $21.5 billion presented by President Tinubu for consideration The loans, according to the Senate, were part of the MTEF and Fiscal Strategy Paper (FSP) for the 2025 budget.

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Economy

CBN hikes interest on treasury Bills above inflation rate

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2 days ago

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December 4, 2025

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The spot rate on Nigerian Treasury bills has been increased by 146 basis points by the Central Bank of Nigeria (CBN) following tight subscription levels at the main auction on Wednesday. The spot rate on Treasury bills with one-year maturity has now surpassed Nigeria’s 16.05% inflation by 145 basis points following a recent decision to keep the policy rate at 27%. 

The Apex Bank came to the primary market with N700 billion Treasury bills offer size across standard tenors, including 91-day, 182-day and 364 day maturities. Details from the auction results showed that demand settled slightly above the total offers as investors began to seek higher returns on naira assets despite disinflation.

Total subscription came in at about N775 billion versus N700 billion offers floated at the main auction. The results showed rising appetite for duration as investors parked about 90% of their bids on Nigerian Treasury bills with 364 days maturity. The CBN opened N100 billion worth of 91 days bills for subscription, but the offer received underwhelming bids totalling N44.17 billion.

The CBN allotted N42.80 billion for the short-term instrument at the spot rate of 15.30%, the same as the previous auction. Total demand for 182 days Nigerian Treasury bills settled at N33.38 billion as against N150 billion that the authority pushed out for subscription. The CBN raised N30.36 billion from 182 days bills allotted to investors at the spot rate of 15.50%, the same as the previous auction.

Investors staked N697.29 billion on N450 billion in 364-day Treasury bills that was offered for subscription. The CBN raised N636.46 billion from the longest tenor at the spot rate of 17.50%, up from 16.04% at the previous auction.

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