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Abuja Chamber of Commerce and Industry (ACCI) has reacted cautiously to the recent new policy on cash withdrawal limits announced by the Central Bank of Nigeria (CBN).
The chamber explained that “We have perused the policy guidelines and we first commend the CBN for constantly innovating to address the fiscal and monetary challenges facing the country.
“We note the intention of the apex bank, which is the urgent need to address growing inflationary pressure and stabilise the value of the naira.”
However, the ACCI said as commendable as this policy is, “we are worried about the timing of the announcement that coincides with the ongoing plan to phase out old naira notes.
“Our concerns stem from the disruption the new policy will have on many SMEs in several big local markets. The limitation on withdrawal will constrain business transactions especially as most businessmen rely on such withdrawal for quick business engagement from one market to the other.”
According to a statement by Dr Al-Mutjaba Abubakar, the president of ACCI, the proposed new policy aside from slowing down businesses within the formal and informal markets, also has a tendency to increase the cost of doing business due to sanctions on withdrawals exceeding certain limits.
“The charges on excess withdrawals constitute a new form of levy, which adds to the long list of levies on SMEs and informal business operators.
“The ACCI wishes to again draw the attention of the apex bank and other levels of government to the fact that small businesses in Nigeria are dying on a very alarming percentage. We solicit the understanding of policymakers to always engage the business sector on policies and programmes that would affect them.
“Such exchange will enable policymakers to consider the impact of proposed policies on businesses. Any oversight in holding such consultation may result in policy decisions that further emasculate small businesses, thereby deepening the economic challenges facing the nation.
“On the implementation timeline of the new policy, we urge the apex bank to allow more time for the commencement of this policy so that businesses have enough time to make the necessary adjustments,” the statement concluded.
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