Nigeria: Authorities to implement revised cash withdrawal limits for individuals and businesses from Jan. 9

Event

The Central Bank of Nigeria (CBN) will introduce revised cash withdrawal limits from Jan. 9. The CBN will cap Withdrawals at banks for individuals and businesses at N100,000 and N500,000 per week, respectively. The maximum cash withdrawal at ATMs will be limited to N100,000 per week and N20,000 per day. Fees will apply for withdrawals above the limits. Individuals and businesses may withdraw up to N5,0000,000 and N10,000,000 once a month for legitimate purposes, subject to fees.

The CBN further stated that customers are encouraged 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 will also introduce 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.

Resources

Central Bank of Nigeria