CBN announces new policy on cash withdrawals for individuals and corporate bodies

The Central Bank of Nigeria (CBN) has released a new policy that caps weekly over-the-counter (OTC) cash withdrawals to N100,000 for corporate bodies and N100,000 for individuals.

“Withdrawals above these limits shall attract processing fees of 5% and 10%, respectively,” via CBN.

This announcement is contained in a circular sent to all Deposit Money Banks (DMBs) and other financial institutions, noting that this will take effect nationwide from January 9, 2023.

Director of the Central Bank of Nigeria’s Banking Supervision Department Haruna Mustafa has stated that this action is consistent with the bank’s cashless policy strategy. Godwin Emefiele, governor of the Central Bank of Nigeria, on the occasion of the first anniversary of Nigeria’s digital currency, the eNaira, declared that the bank’s ultimate goal is to create a cashless economy in Nigeria.

“The destination as far as I am concerned is to achieve a 100% cashless economy in Nigeria. I know that those who doubt us will say that 100 per cent cashless is unattainable. Yes, it is true, but Nigeria must move from being a predominantly cash economy to a predominantly cashless economy,” Emefiele said.

CBN’s new policy comes just days after it released the redesigned Naira notes, which were issued out to tackle counterfeiting and a lack of clean Naira notes, as well as curb widespread hoarding of banknotes by the general population.

To guarantee that the Naira redesign deadline is met in full, the CBN directed banks to start accepting cash deposits over the cashless policy threshold, as CBN spokeswoman Osita Nwanisobi revealed in November.

Mustafa made the statement on Tuesday, December 6, 2022, detailing the cash withdrawal limits, which are as follows:

• The maximum cash withdrawal per week via Automated Teller Machine (ATM) shall be ₦100,000 subject to a maximum of ₦20,000 cash withdrawal per day. Also, only denominations of N200 and below shall be loaded into the ATMs.
• Third-party cheques above ₦50,000 shall not be eligible for payment over the counter, while extant limits of ₦10,000,000 on clearing cheques still subsist.
• The maximum cash withdrawal via point of sale (POS) terminal shall be N20,000 daily.

The regulatory Bank also noted that for business transactions, it will require a;

• BVN
• Letter detailing the withdrawal’s purpose, and
• An approval from the CEO or company’s MD

In “compelling circumstances” where a cash withdrawal above the revised limit is required for a “legitimate purpose,” it will accept other forms of identification as well.