From January 9, the CBN will impose limits on cash withdrawals.

The Central Bank of Nigeria (CBN) has announced that withdrawals from the nation’s banking system will be restricted starting on January 9, 2023.

This was stated in a circular dated December 6, 2022, with reference number SD/DIR/PUB/LAB/015/069 and the title “Letter to All Deposit Money Banks (DMBS) and Other Financial Institutions, Payment Service Banks, Primary Mortgage Banks and Microfinance Banks.” It was issued by Haruna Mustafa, director of banking supervision.

According to CBN, the circular is consistent with the apex bank’s cashless policy.

All deposit money banks and other financial institutions were instructed to take note of and abide by a number of directives in the circular.

Starting on January 9, which is the second Monday of 2023, the CBN ordered that the weekly maximum for cash withdrawals made over the counter (OTC) by both individuals and corporate organizations would be N100,000 and N500,000, respectively.

The bank also stated that withdrawals exceeding these thresholds would incur processing fees of 5% and 10%, respectively. “Third party cheques above N50,000 shall not be eligible for payment over the counter, while the existing clearing cheque limits of N10,000,000 remain in effect,” it stated. An Automated Teller Machine (ATM) may only be used to withdraw a maximum of N820,000 in cash per day and N100,000 per week.

The directive also stipulates that only notes worth N200 or less may be inserted into ATMs, and that N20,000 may be withdrawn daily from point-of-sale (PoS) terminals.