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Nigerian Central Bank Increases Cash Withdrawal Limits After Receiving ‘Feedback From Stakeholders’

Barely a month after announcing the restricting of cash withdrawals to under $50 per week, the Central Bank of Nigeria said on Dec. 21 that individuals will be able to withdraw an equivalent of $1,120 per week starting on Jan. 9, 2023. The central bank said individuals and corporate organizations withdrawing amounts exceeding the new limits would be required to pay processing fees of 3% and 5% respectively.

CBN’s Digital Currency Push

The Central Bank of Nigeria (CBN) has said that starting on Jan. 9, 2023, individual banking clients will be able to withdraw an equivalent of $1,120 (N500,000) per week, up from the under $50 cap introduced on Dec. 6. For corporate organizations, the CBN said the cash withdrawal would be capped at $11,200, a nearly tenfold increase from the previously announced limit.

In a new circular to heads of financial institutions, the CBN, which is pushing for the broader adoption of its digital currency, said its decision to revise the cash withdrawal limits was “based on feedback received from stakeholders.” The bank added that while it pushes for a cashless society it remains mindful of the role played by cash, particularly in underserved communities.

“The CBN recognizes the vital role that cash plays in supporting underserved and rural communities and will ensure an inclusive approach as it implements the transition to a more cash-less society,” the central bank statement said.

Processing Fees for Withdrawals Exceeding New Limits

As previously reported by Bitcoin.com News, the Nigerian central bank’s decision to restrict cash withdrawals came as it prepared to unveil new banknotes. The new banknotes, which were subsequently introduced into circulation on Dec. 15, are part of an attempt by the CBN to promote the use and adoption of the e-naira.

Meanwhile, in the latest circular, the CBN said individuals and corporate organizations that wish to withdraw amounts exceeding new limits would be charged processing fees of 3% and 5%, respectively. In addition, such withdrawals will be processed after the client furnishes the bank with several documents that include a letter from the CEO of a financial institution authorizing the withdrawal.

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Terence Zimwara

Terence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route.














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