The Central Bank of Nigeria (CBN) has announced an increase in the weekly cash withdrawal limits for individuals and corporate organizations.
In a letter issued to all banks on Tuesday and signed by the Director of Banking Supervision, Haruna B. Mustafa, the CBN stated that the maximum weekly limit for cash withdrawals by individuals will now be NGN 500,000 up from the previous limit of NGN 100,000.
Corporate organizations will now be able to withdraw up to NGN 5 million per week, an increase from the previous limit of NGN 500,000.
The CBN stated that this increase was made based on feedback received from stakeholders.
The bank also outlined a processing fee for cash withdrawals above these limits that are requested for legitimate purposes. Individuals will be subject to a processing fee of 3%, while corporate organizations will be subject to a fee of 5%.
Financial institutions will be required to obtain valid identification, a bank verification number, a tax identification number, and written approval from the CEO or managing director in order to process these requests.
In addition to the revised cash withdrawal limits, the CBN has also announced that third-party cheques above NGN 100,000 will no longer be eligible for payment over the counter.
The existing limit of NGN 10 million on clearing cheques remains in place. The CBN has encouraged customers to use alternative channels, such as internet and mobile banking, to conduct their financial transactions.
The bank has also reminded banks and other financial institutions to comply with anti-money laundering and counter-terrorism financing regulations.
The CBN has recognized the important role that cash plays in supporting underserved and rural communities and has stated that it will take an inclusive approach as it works towards a more cashless society.
The bank has made it clear that any banks or financial institutions found to be aiding and abetting the circumvention of this policy will face severe sanctions.
The new policy will take effect nationwide on January 9, 2023.
