By Ken Chiwendu
Ondo State Governor, Rotimi Akeredou has dragged the Federal Government and the Central Bank of Nigeria CBN to the Supreme Court over the limitation on daily cash withdrawals from banks.
The CBN announced a cash withdrawal limit that came into effect on January 9,2023. The apex bank policy places maximum weekly withdrawal for individuals and corporate organisations at N500,000 and N5 million, respectively.
Governor Akeredolu, in an originating summon filed by Ondo Attorney-General Charles Titiloye Friday, and asked the Supreme Court to declare that the federal government cannot, by a directive issued through CBN, amend or vary an existing act of the National Assembly, particularly section 2 of the Money Laundering Act, which relates specifically to limitations on cash withdrawals for individuals and corporate organisations to N5 million and N10 million, respectively.
He also prayed the apex court to decide whether the guidelines issued by the federal overnment on maximum daily cash withdrawal and the hardship caused by the implementation of the policy were not in conflict with the provision of section 2 of the Money Laundering Act, sections 20, 39 and 42 of the CBN Act.
The governor contended that the guideline on daily maximum cash withdrawal made by Buhari administration was an infraction on the legal rights of the Ondo government and its citizens “to access funds for execution of developmental projects, small credit facilities to petty traders (who have no account in banks) and highly detrimental to daily commercial activities in the state.”
