Nigeria Increases Cash Withdrawal Limit Post Feedback

• The CBN has imposed a cash withdrawal limitation for corporations of $11,200.
• The bank acknowledged the importance of cash in helping unserved and rural regions.

The Central Bank of Nigeria (CBN) has announced that the weekly withdrawal limit for individual banking customers would increase to $1,120 (N500,000) from January 9, 2023, from the current limit of under $50 (established on December 6). The CBN has imposed a cash withdrawal limitation for corporations of $11,200, a roughly tenfold increase from the previous maximum.

The Central Bank of Nigeria (CBN), which is promoting the widespread use of its digital currency, has sent a new circular to the heads of financial institutions explaining that it has revised the cash withdrawal restrictions “based on feedback received from stakeholders.” The bank said that despite its advocacy of a cashless future, it recognizes the importance of cash in certain regions.

Promoting Adoption of e-Naira

The central bank acknowledged the importance of cash in helping unserved and rural regions and promised to take an inclusive approach as it implemented the shift toward a cashless society.

The Nigerian central bank decided to limit cash withdrawals just before releasing brand-new banknotes. The CBN has been trying to increase the usage and acceptance of the e-naira by releasing new banknotes on December 15th.

Furthermore, the CBN said in its most recent circular that processing costs of 3% and 5%, respectively, would be imposed on individuals and business entities wishing to withdraw funds in excess of the new restrictions. In addition, the customer must provide the bank with many papers, including a letter from the CEO of a financial institution allowing the withdrawal before the bank would execute the request.