Nigerian Governors Forum Set Up a six-member Committee to work with the Central Bank of Nigeria

The 36 governors of Nigeria have decided to form a six-member committee, chaired by the governor of Anambra State, Charles Soludo, to work with the Central Bank of Nigeria on matters including the nation's monetary policy and financial system.

The governors also decided to work with the CBN and the Nigerian Financial Intelligence Unit to advance legitimate goals within the bounds of the country's legal framework.

The Nigeria Governors' Forum hosted the governors' first meeting of 2023 on Thursday, January 19, during which they came to the decisions.
The NGF stated in a statement released on Saturday that the recent NFIU recommendation and rules on cash transactions were outside of the NFIU's legal authority and mandate. The statement was signed by the NGF's chairman, Sokoto State Governor Aminu Tambuwal.

On December 6, 2022, the CBN issued a directive to banks, other financial institutions, payment service banks, primary mortgage banks, and microfinance banks limiting the maximum amount of cash that individuals and corporate firms could withdraw over the counter each week to N100,000 and N500,000, respectively. The directive also stated that going forward, withdrawals that exceeded the lower limit would result in processing fees of 5% and 10%, respectively, for both individuals and corporate firms.

Following the central bank's most recent redesign of naira notes, the bank also ordered that third-party cheques over N50,000 shall not be appropriate for OTC payment although existing limits of N10 million on clearing cheques remain.

Following pressure from Nigerians and lawmakers, the Central Bank of Nigeria (CBN) announced an increase in the cash withdrawal limit. According to the CBN, individuals can now withdraw N500,000 in cash each week, while corporate firms are now permitted to withdraw up to N5 million through all available channels, including automated teller machines and point-of-sale terminals.

The CBN governor, Mr. Godwin Emefiele, reportedly informed the NGF on the redesign of the naira, its economic and security ramifications, as well as the new withdrawal policy.

The governors emphasized that they were not opposed to the goals of the naira redesign program but noted that there remained significant difficulties for the Nigerian people.

The governors went on to say that the CBN should take state-specific characteristics into account, particularly when it comes to financial inclusion.

In order to work with the CBN to address issues with the nation's monetary management and financial system, the governors decided to "create a six-member Committee to be chaired by Governor Charles Soludo of Anambra State, and the governors of Akwa Ibom, Ogun, Borno, Plateau, and Jigawa as members."

“Work closely with the CBN leadership to ameliorate areas that require policy variation particularly the poorest households, the vulnerable in society and several other citizens of our country that are excluded.
“Collaborate with the CBN and the Nigerian Financial Intelligence Unit NFIU in advancing genuine objectives within the confines of our laws, noting that the recent NFIU.”

References
Punchng, 'Soludo chairs govs’ committee on CBN withdrawal limit' (online, 2023) <https://punchng.com/soludo-chairs-govs-committee-on-cbn-withdrawal-limit/>.