The Central Bank of Nigeria (CBN) has ordered banks and other financial institutions to ensure that weekly over-the-counter (OTC) cash withdrawals by individuals and corporate entities do not exceed N100,000 and N500,000, respectively.
The CBN in a circular issued on Tuesday and signed by the Director of Banking Supervision, Haruna Mustafa, said the directives take effect nationwide from January 9, 2023.
The apex bank also fixed daily maximum withdrawals via point of sale (PoS) terminal at N20,000.
“The maximum cash withdrawal per week via Automatic Teller Machine (ATM) shall be N100,000 subject to a maximum of N20,000 cash withdrawal per day.
“Only denominations of N200 and below shall be loaded into the ATMs,” the bank said, adding that the new policy was sequel to the launch of the redesigned N200, N500 and N1,000 notes by President Muhammadu Buhari on November 23, 2022.
CBN Governor Godwin Emefiele had on October 26, 2022 announced the redesigning of the Naira, saying the new and existing currencies will remain legal tender and circulate together until January 31, 2023.
The regulator believes that the redesigned notes will limit cash in circulation and consequently restrict the heinous activities of ransom-demanding kidnappers as well as politicians, wont to rigging elections.
However, the policy has been criticised by some politicians and some other members of the public, including the General Overseer of the Redeemed Christian Church of God.