Naira Redesign: CBN reviews cash withdrawal limits to N500,000 for individuals, N5m for corporates

*The Central Bank of Nigeria announces upward adjustments in cashless withdrawal limits, as individuals can now withdraw N500,000 cash weekly, while corporate customers N5 million cash across all electronic payments channels in the country’s financial ecosystem

Gbenga Kayode | ConsumerConnect

Sequel to earlier mounting complaints and attendant appeals by some individuals, legislators, and groups, the Central Bank of Nigeria (CBN) Wednesday, December 21, 2022, effected and announced upward reviews of the Bank’s recent directive to Deposit Money Banks (DMBs) on cash withdrawal limits in the economy.

ConsumerConnect reports Haruna Mustafa, Director of Banking Supervision at CBN, in a circular issued Wednesday, said the Bankers’ Bank noted that individuals can now withdraw N500,000 cash weekly, whereas corporate establishments can now withdraw up to N5 million cash across all channels, including Automated Teller Machines (ATMs) and Point of Sale (PoS) terminals.

The Bank said: “The maximum weekly limit for cash withdrawal across all channels by individuals and corporate organisations shall be N500,000.00 and N5,000,000.00 respectively.”

Rationale for upward reviews of withdrawal limits

While noting that the latest directive on cash withdrawal limits would become effective from January 9, 2023, the CBN explained the adjustment was based on feedback received from stakeholders after its initial announcement on December 6 this year.

It is recalled the Bank December 6, 2022, had directed  commercial banks and Other Financial Institutions (OFIs) to ensure that weekly Over-the-Counter (OTC) cash withdrawals by individuals and corporate entities would not surpass N100,000 and N500,000, respectively.

Similarly, the CBN had pegged maximum daily withdrawals via ATMs and PoS terminals at N20,000, and stated that only denominations of N200 and below would be loaded into the ATMs of the DMBs in the country.

Hitherto, that Bank had disclosed the new policy, followed President Muhammadu Buhari’s launch of the redesigned N200, N500 and N1,000 banknotes November 23.

However, the directive was sparking a controversy and outrage from several Nigerians and members of the National Assembly (NASS), many of whom openly opposed the aspect of the Bank’s cashless policy.

Previously, several PoS operators, under the banner of the AMMBAN had said that the policy would limit their activities and deprive them of  employment opportunities in the subsector.

Likewise, some politicians reportedly complained the was targeted at the opposition parties ahead of the 2023 General Elections.