According to CBN, the cashless policy is not new.

 The Central Bank of Nigeria (CBN) defended its policy on cash withdrawal limitations on Friday, claiming that it wasn't new and wasn't directed at any specific group of people.

In a statement to the Senate Committee on Banking, Insurance, and Other Financial Institutions, the apex bank team stated their viewpoint and claimed that the policy of N100,000 and N500,000 withdrawal limits was in the best interests of the country.

During the controversy surrounding the policy, Mrs. Aishat Ahmad, the deputy governor of the CBN for financial system stability, recalled that a similar policy had been introduced in 2012 under the administration of former President Goodluck Jonathan and had been expanded to Abuja and six other states in 2013.

On Friday in Abuja, Mrs. Ahmad and Mr. Edward Lametek appeared before the Senate Committee on Banking, Insurance, and Other Financial Institutions to be considered for reappointment as the Central Bank's deputy governors.

She said that in 2012, Lagos, Abuja, and six other states implemented a cashless policy as part of a test program.

Although the CBN has not since fully implemented the policy, she pointed out that its adoption at the time brought about significant changes in the banking and payment systems.

“Distinguished Chairman of this committee and members, I’m happy for the opportunity given to make presentations on the planned N100,000 withdrawal limit for individuals and N500, 000 for Corporate Bodies per week, beginning from 9th January 2023, in line with the cashless policy introduced in 2012 .

“Based on information available to CBN, the time for full implementation of the policy with a proposed limit on cash withdrawals per week is now.

“Required infrastructure for its implementation of the policy has been put in place, in terms of financial access point system, mobile money, e-naira, hence, there was no need for fears.

“In the past, banking transactions in Nigeria were limited to Bank Branches alone as the only means, which has now expanded into multiple electronic platforms as well as a geometrical increase in the number of agents from 88,000 to 1.4 million”, she said.