Nigeria’s Central Bank Raises Criticized Cash Withdrawal Limits

A picture shows the headquarters of the Nigerian Central Bank where electoral material is kept by Independent National Electoral Commission (INEC) as the country gears up for for the rescheduled general elections in Abuja, on February 20, 2019Muhammad OsmanThe bank launched new banknotes in a bid to curb counterfeiting in November. Later, the bank announced a new cash policy that limited withdrawals to 100,000 naira ($225) a week instead of 2.5 million naira ($5,638). The policy drew public outrage.The Central Bank of Nigeria (CBN) has decided to rollback its recently-announced monetary policy that restricted personal cash withdrawals to 100,000 naira ($225) per week instead of 2.5 million naira ($5,638) and corporate withdrawals to 500,000 naira ($1125), announcing new withdraw limits this week. The policy had drawn harsh criticism and outcry from the public.The newly announced limits, which are set to apply from January 9, 2023, are five times higher for individuals and ten times higher for corporations in comparison with the earlier restrictions.Under the adjustment, individuals will now be able to withdraw $1,125, while the limit for corporations will be $11,000 per week.AfricaNigerian Central Bank Head Accused of Financing Terrorism Refuses to Return Home From US – Media23 December, 08:48 GMTThe bank had previously argued that withdrawal limits were introduced in order to rein in excess funds, promote electronic payments and discourage cash ransom payments to kidnappers.The Central Bank’s policy was met with harsh criticism, with the Nigerian National Assembly calling on CBN Governor Godwin Emefiele to testify and explain the details of the new measures. Critics said that such a policy could choke millions of Nigerians, including small businesses.In November, the Nigerian Central Bank launched new banknotes in a bid to curb counterfeiting and force excess cash back into the banking system.

Source