The House of Representatives has asked the Central Bank of Nigeria (CBN) to suspend the cashless policy it recently re-introduced.
The decision to ask the CBN to halt the idea was taken at the plenary session on Thursday by the lower legislative chamber.
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According to the house, the policy will lead to a significant decrease in credit extension by Nigerian money deposit banks.
Also, the lawmakers said the policy will have negative impacts on small and medium enterprises which are clearly the engine room for growth of the economy.
CBN, in a circular on Tuesday, directed all deposit money banks in the country to charge 3% processing fees for withdrawals and 2% for deposits of amounts above N500,000 for individual accounts.
Corporate account holders will be charged 5% processing fees for withdrawals and 3% for deposits of amounts above N3 million.
The directive was, however, criticised by some Nigerians for various reasons.