The House of Representatives have directed the Central Bank of Nigeria (CBN) to suspend the recently reintroduced cashless policy in the country.

The directive was issued on Thursday, at the plenary of the lower legislative chamber.

The house said the policy will lead to a significant decrease in credit extension by Nigerian money deposit banks.

The lawmakers also emphasized that the policy will have negative impacts on small and medium enterprises noting that they are the engine room for the growth of the economy.

Recall that in a circular released on Tuesday, the CBN had 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.

The circular also said Corporate account holders will be charged 5% processing fees for withdrawals and 3% for deposits of amounts above N3 million.

The directive from the CBN was, however, criticised by some Nigerians for various reasons.

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