22 Dec 2022 | 08:36 AM UTC
Nigeria: Authorities amend revised cash withdrawal limits for individuals and businesses from Jan. 9 /update 1
Central Bank of Nigeria amends revised cash withdrawal limits for individuals and businesses from Jan. 9.
Event
The Central Bank of Nigeria (CBN) has amended the cash withdrawal limits from Jan. 9 following feedback from stakeholders. The CBN will cap withdrawals for individuals and businesses at N500,000 and N5,000,000 per week, respectively. The previous announced limits were capped at N100,000 and N500,000. Individuals and businesses may withdraw above the limits in compelling circumstances, subject to three and five percent fees respectively.
The CBN encourages customers to use alternative methods such as internet and mobile banking, and eNaira (regulated by the CBN), among other solutions.
The measure may trigger higher demand for cash at banks nationwide ahead of Jan. 9. Related protests denouncing the measure cannot be ruled out.
Context
The measure is part of a global so-called cashless strategy to limit the use of cash and encourage the use of digital currencies. In line with the cashless strategy, the CBN has introduced a new series of N200, N500, and N100 banknotes from Dec. 15, while existing currencies will no longer be considered legal tenders from Jan. 31, 2023. The policy aims to reduce the hoarding of banknotes by the public and counter criminal activity, including stemming counterfeiting and the payment of ransoms due to high levels of kidnapping in the country.
Advice
Consider withdrawing sufficient cash as a precaution. Exercise a high degree of caution if carrying large amounts of money. Make allowances for possible business disruptions. Avoid any related demonstrations.
