By Olusegun Olanrewaju
Following sustained demands, the Central Bank of Nigeria (CBN), yesterday reversed its decision on maximum cash withdrawal limits.
The apex bank, in a new circular issued to all banks yesterday, said it increased the maximum weekly limit for cash withdrawal across all channels.
Under the latest arrangement, individuals and corporate organisations can now withdraw N500, 000 and N5m cash.
A circular to this effect signed by CBN’s Director of Banking Supervision, Haruna Mustafa, stated: “In compelling circumstances where cash withdrawal above the limits is required for legitimate purposes, such requests shall be subject to a processing fee of three per cent and five per cent for individuals and corporate organisations, respectively.”
In the case of third-party cheques above N100, 000, the CBN directed that it would not be eligible for payment over the counter, while the extant limit of N10m on clearing cheques still subsists.
According to the apex bank, “Monthly returns on cash withdrawal transactions above the specified limits should be rendered to the banking supervision, other financial institutions supervision and payments system management departments as applicable.”
The CBN appealed to bank customers to use alternative channels (internet banking, mobile banking apps, USSD, cards/POS, eNaira, among others), to conduct their banking transactions.
It also acknowledged that “bank and mobile money agents are important participants in the financial system, enabling access to financial services in underserved and rural communities”.
“They will continue to perform these strategic functions in line with existing regulations governing their activities,” the CBN stated.
The regulatory financial institution also said it recognises “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 cashless society.”
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The new directive takes effect nationwide from January 9.
The CBN had on December 6, 2022, announced revised cash withdrawal limits for individuals and corporate bodies, which were to come into effect on January 9, 2023.
Under the new policy, the revised withdrawal limits pegged the amount of cash that can be withdrawn per week at N100, 000 for individuals and N500,000 for corporate organisations.
But following strident criticisms of the new policy by Nigerians from across the board, the Senate at a plenary on December 7, deliberated on the development, raising concerns about its effect on the populace.
To effect, the President of the Senate, Ahmad Lawan, directed the Senate Committee on Banking, Insurance, and other Financial Institutions, which will be screening two re-appointed deputy governors of the CBN, to query the appointees on the new policy.
Also reacting to the policy, the House of Representatives passed a resolution inviting the CBN governor, Godwin Emefiele, to appear before the House on December 15 to provide explanations for the redesign of naira notes and the revised cash withdrawal limits.
Analysts wondered whether the new measures by the CBN were dictated by economic reasons or influenced by ‘political motives’.
Groups, especially in civil society and advocacy, expressed discomfort with the new policy.
