CBN reduces withdrawals to N100,000, N500,000 per week for individuals, companies

On Tuesday, the Central Bank of Nigeria (CBN) announced a new policy requiring deposit money banks and other financial institutions to cap weekly over-the-counter cash withdrawals at N100,000 for individuals and N500,000 for businesses.

The apex bank published a circular that included the updated cash withdrawal limitations.

On January 9, 2023, it will become law throughout the country.

All cash withdrawals over the specified restrictions after the policy goes into effect will be subject to processing fees of 5% and 10%, respectively.

The freshly revised N200, N500, and N1000 banknotes were introduced by President Muhammadu Buhari just a few weeks prior to the implementation of the new policy.

In order to control inflation, the Central Bank of Nigeria (CBN) has made known that it intends to restrict the amount of N500 and N1000 notes in circulation.

Godwin Emefiele, the governor of the Central Bank of Nigeria (CBN), made this statement last month while fielding questions from reporters during the monetary policy committee (MPC) meeting in Abuja.

Emefiele claimed that raising the currency’s high denomination could be one of the elements causing inflation in the nation.

He stated that the highest denomination in the UK is £50 with regard to that country. Additionally, £10 is the currency that is used the most in the nation.

“Rarely you find some people spend £20. Nobody sees £50. If you go around carrying £50 in the UK, they will begin to suspect you. Whereas, the reverse is what is happening in Nigeria. Nigerians want to carry N1,000 or N500,” he said.

“In fact, we’re beginning to see or think that increasing the high denomination bills is also part of what may even be fuelling inflation.

“So, over time, we will reduce the volume of N500 and N1000 in circulation.

“Let people carry N50 around. If you want to do high-value transactions, embrace online, embrace our agency programme, embrace our mobile banking programme. That is what you need. You want to conduct legal banking or financial services transactions, you have no business carrying N1,000.”