CBN slashes withdrawal limits as customers, companies panic

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On January 9, 2023, the Central Bank of Nigeria will implement new cash withdrawal restrictions on both people and organizations.

Individuals would only be permitted to withdraw N100,000 per week (through over-the-counter, point-of-sale machines, or automated teller machines), while organizations will be permitted to access N500,000 per week, according to a memo the CBN sent to banks on Tuesday.

Haruna Mustafa, the Director of Banking Supervision at the CBN, signed a memo instructing banks to only load N200 and lower denominations into their ATMs. This means that when the directive goes into effect, Nigerians will only be able to withdraw N20,000 from ATMs each day.

The message stated that individuals and business organizations could only take up to N100,000 and N500,000 in cash every week, respectively, over the counter. Processing costs of $5 and $10 will apply to withdrawals that exceed these thresholds, respectively.

“Third-party cheques over N50,000 shall not be acceptable for payment over the counter while the existing clearing cheque limits of N10,000,000,000 remain in effect.

“The weekly maximum cash withdrawal by an automated teller machine shall not exceed N100,000, subject to a daily maximum of N20,000. Only notes worth N200 or less may be inserted into the ATMs. The daily cap on cash withdrawals from the point of sale terminal is N20,000.

However, there is an exception that, under certain conditions, permits up to N5 million for private persons and N10 million for business organizations each month.

The CBN issued a warning to banks, stating that any bank that helped or encouraged the violation of this regulation would face harsh penalties.

 

 

Vincent Paul