A High Court in Abuja has refused to grant a motion seeking to halt the Central Bank of Nigeria’s (CBN) new cash withdrawal policy.
The application was brought before the court by 10 named applicants who represent the interests of 20 million unbanked Nigerian citizens.
The applicants argued that the policy, which includes a deadline of 31 January 2023 for the use of certain bank notes, would negatively impact their ability to access financial services without adequate support.
According to the applicants, the new policy will affect them “without any realistic 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 stated that the policy violates the Money Laundering (Prevention and Prohibition) Act of 2002 and the fundamental rights of citizens as guaranteed by the Nigerian constitution.
The applicants prayed the Court to grant injunctions restraining the respondents from proceeding with the 31st January 2023 deadline for the use of the current N200, N500 and N1,000 bank notes.
They also asked the Court to grant an injunction restraining the respondents from implementing the revised cash withdrawal policy, which limits the maximum cash withdrawal Over The Counter (OTC) by individuals and corporate organizations per week to N100,000 and N500,000 respectively.
Furthermore, they asked the Court to grant an order for accelerated hearing to the suit and also an order for substituted service on the parties.
They also prayed for an 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 for the applicants, Justice Sylvanus Oriji refused the prayers for injunction but rather directed that all the respondents be put on notice to come and show cause why the order for injunction should not be granted against them.
The judge thereafter adjourned the matter to 10th January 2023 after granting orders for accelerated hearing and substituted service.
