The Central Bank of Nigeria’s new cash withdrawal limit policy went into effect across the nation on Monday with the help of over 20 Deposit Money Banks, much to the chagrin of bank clients.
In response to demand, the CBN’s Governor, Godwin Emefiele, revised the bank’s previous cash withdrawal limitations on December 21, 2022.
The CBN revised the maximum weekly limit for cash withdrawals by individuals and corporate organizations across all channels higher to N500,000 and N5m, respectively.
The CBN credited the advancement to the input it received from stakeholders.
Financial institutions must collect client information for transactions that exceed withdrawal limits and upload it to the CBN portal set up for that purpose.
The CBN had stated in a previous circular it had issued on December 6, 2022, that as of January 9, 2023, the weekly maximum over-the-counter cash withdrawal limit for both individuals and corporate organizations would be N100,000 and N500,000, respectively. It had also stated that withdrawals above these limits would be subject to processing fees of 5% and 10%, respectively.
The maximum cash withdrawal via automated teller machines each week, starting on January 9, will be N100,000, subject to a daily cap of N20,000, it added.
Additionally, the apex bank ordered banks to fill their ATMs with only bills with a value of N200 or less.
Many stakeholders protested the earlier directive, which it followed. Point-of-sale operators will resist the policy, according to the Association of Mobile Money and Bank Agents of Nigeria, because it was designed to destroy their source of income.
Bank clients, who claimed that the central bank was insensitive to the difficulties of cash-based enterprises, fiercely opposed the revised cash limitations that went into force on Monday.
Speaking with the media, a bank customer, identified as Sola Adewale, in Mowe, Ogun State, said, “I personally think putting a limit on how people should spend money they worked for is crazy. N500,000 weekly withdrawal limit may be too much for some people while it is too small for others. This affects some businesses that need much cash.
“Putting a limit on cash expenditures won’t reform Nigeria in any way because the people who spend lavishly will still have access to whatever amount of money they need. So at the end of the day, it’s the common man that will suffer the most.”
Grace Chukwu, another bank customer who spoke in Ogba, Lagos, said, “I am an entrepreneur with three companies. I use First Bank, FCMB, Zenith Bank and Sterling Bank. I will use this opportunity to applaud the service I receive from First Bank, Sterling Bank and other banks. I’m not really bothered because I hardly transact with cash, I do bank transfers most time.
“But I can understand how this new policy will affect other organisations and people who still don’t trust the available Internet banking options in our rural and urban communities and need to move funds above the amount permitted via Internet banking. I’ve been a victim myself a few times. So, I don’t blame them. And let’s face it, cash is still king. I feel they should review it.”
