- The central bank of Nigeria has announced a daily limit on cash withdrawal for Nigerians and corporate
- The action is CBN hope will persuade Nigerians to use electronic means for transaction
- The CBN has also announced that only N200 notes will be deposited in ATMs across the country
The Central Bank of Nigeria (CBN) has established a weekly limit on cash withdrawals at the counter of N100,000 for individuals and N500,000 for organizations, regardless of size.
Additionally, N20,000 has been set as the daily withdrawal limit at POS terminals. The regulation will go into effect on January 9, 2023.
The directive comes as the Central Bank of Nigeria (CBN) is preparing to change the circulation of naira notes starting on December 15—exactly one week from today.
The Punch reports that the directive is contained in a December 6 memo classified as Confidential titled: “Naira Redesign Policy-Revised Cash Withdrawal Limits.”
Signed by Haruna Mustafa, Director of Banking Supervision, the memo reads:
“Further to the launch of the redesigned Naira notes by the President of the Federal Republic of Nigeria, on Wednesday, November 23, 2022 and in line with the Cash- less policy of the CBN, all deposit money banks (DMBS) and other financial institutions (OFIs) are hereby directed to note and comply with the following:
"The maximum cash withdrawal over the counter (OTC) by individuals and corporate organizations per week shall henceforth be N100,000 and N500,000 respectively. Withdrawals above these limits shall attract 5% and 10% processing fees, respectively.
"Third party cheques above 50,000 shall not be eligible for payment over the counter, while extant limits of N10,000,000 on clearing cheques still subsist."
ATM, POS withdrawals
CBN also announced that the maximum cash withdrawal per week via Automated Teller Machine (ATM) should be N100,000, subject to a maximum of N20,000 cash withdrawal per day, BusinessDay reports.
The memo continues:
"Only denominations of N200 and below shall be loaded into the ATMs.
The maximum cash withdrawal via the point of sale (POS) terminal shall be N20,000 daily.
In compelling circumstances, not exceeding once a month, where cash withdrawals above the prescribed limits is required for legitimate purposes, such cash withdrawals shall not exceed #5,000,000.00 and N10,000,000.00 for individuals and corporate organisations, respectively, and shall be subject to the referenced processing fees in (1) above, in addition to enhanced due diligence and further information requirements.
Further to (6) above, you are required to obtain the following information at the minimum and upload same on the CBN portal created for the purpose.
Here is a quick breakdown of CBN's cash withdrawal changes
- N100k - N500k limit for individuals and corporate, respectively
- N50k limit for 3rd party cheque
- N20k limit per day
- N200 and lower notes only in ATMs
- N20,000 cash withdrawal limits from POS per day
- Withdrawals above these limits shall attract processing fees of 5% and 10%, respectively.
Nigerian banks announce new working days, closing time
Meanwhile, Nigerian banks have announced changes to their operating hours in order to assist Nigerians holding soon-to-expire Naira currencies
The banks have already announced that they have delivered notifications of their working hours via their social media channels and customers' emails
Details of the contents of their emails and changes were captured by Legit.ng.