CBN Increases Weekly Cash Withdrawal Limits

The Central Bank of Nigeria (CBN) has increased the maximum weekly limit for cash withdrawals across all channels by individuals and corporate organisations to N500,000 and N5 million, respectively.

The CBN said this in a letter addressed to banks on Wednesday. The apex bank said it made the decision based on feedback received from stakeholders. The apex bank had weeks ago pegged the weekly cash withdrawal limit at N100,000 for individuals, a development that has caused a furore in the polity.

Individuals will be allowed to withdraw up to 500,000 nairas ($1,120) weekly, up from a 100,000 limit set on Dec. 6. Corporates will be allowed to withdraw 5 million nairas weekly, up from a 500,000 naira limit.

A majority of Nigerians have no bank accounts and use informal markets, where cash is preferred, and some said the withdrawal limits could hurt some citizens and businesses. Last week, the central bank also started circulating redesigned 200, 500 and 1,000 naira notes under a plan to curb double-digit inflation and move towards a cashless economy. Citizens have until Jan. 31 to turn in old notes, when they cease to be legal tender.