Nigeria Announces New Cash Withdrawal Restrictions — ATMs Limited to Less Than $44 per Day

In a caller directive to fiscal institutions, the Central Bank of Nigeria (CBN) said individuals tin present lone retreat an equivalent of conscionable nether $222 per week portion corporates tin lone retreat currency not exceeding $1,111 during the aforesaid period. The caller limits, which are successful enactment with the CBN’s cashless policy, are acceptable to go effectual connected Jan. 9, 2023, the cardinal slope said.

Processing Fee to Be Levied connected Cash Withdrawals Exceeding New Limits

The Central Bank of Nigeria (CBN) precocious announced the revised currency withdrawal limits that volition go effectual connected Jan. 9, 2023. The announcement comes conscionable days earlier the country’s recently designed naira banknotes commencement circulating. As per the cardinal bank’s Dec. 6 unfastened missive to fiscal institutions, the latest directive is “in enactment with the cash-less argumentation of the CBN.”

According to the letter, the play maximum currency withdrawal implicit the antagonistic (OTC) by individuals and firm organizations volition beryllium equivalent to $222 (N100,000) and $1,111 (N500,000), respectively, erstwhile utilizing the authoritative speech complaint of conscionable nether 450 section currency units for each dollar. For immoderate currency withdrawals by individuals and corporates exceeding the caller limits, the CBN said these would pull a “processing fee” of 5% and 10% respectively.

For currency withdrawals via the ATM, the missive said these would beryllium restricted to an equivalent of $222 per week “subject to a maximum of N20,000 [under $44] currency withdrawal per day.” Cash withdrawal limits via point-of-sale machines volition beryllium restricted to little than $44 per day.

Special Requirements for Cash Withdrawals Exceeding Limits

Meanwhile, the CBN’s missive besides outlined conditions nether which currency withdrawals that transcend the acceptable limits are permitted.

“In compelling circumstances, not exceeding erstwhile a month, wherever currency withdrawals supra the prescribed limits are required for morganatic purposes, specified currency withdrawals shall not transcend N5,000,000 [$11,111] and N10,000,000 [$22,222] for individuals and firm organizations, respectively,” the CBN said successful the letter.

The cardinal slope added that specified withdrawals volition beryllium taxable to a processing interest arsenic good arsenic an “enhanced owed diligence and further accusation requirements.” In addition, monthly returns for withdrawals exceeding the prescribed limits indispensable beryllium submitted to the CBN’s banking supervision department, the missive said.

After announcing the program to regenerate aged notes with recently designed naira banknotes, the CBN has urged Nigerians to clasp cashless outgo methods. Although the announcement is believed to person sparked the accelerated depreciation of the naira, the consequent crackdown connected the alleged amerciable currency dealers is believed to person helped the naira recover immoderate mislaid crushed versus the U.S. dollar.

The CBN letter, successful the meantime, ends by informing of terrible sanctions to persons “aiding and abetting the circumvention of this policy.”

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