Home Nigeria CBN Limits Cash Withdrawals to N100,000 as N200 Becomes Highest ATM Withdrawal

CBN Limits Cash Withdrawals to N100,000 as N200 Becomes Highest ATM Withdrawal

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By Uche Amunike

New policies are being introduced in the banking sector as the Central Bank of Nigeria (CBN) limits cash withdrawals from over-the-counter Automated Teller Machines (ATMs) to N100,000 per week for Individuals and N500,000 per week for corporate organizations.

In a circular dispatched to all deposit money banks (DMBs) and other financial institutions (OFIs) and signed by the Director, Bank Supervision Department of CBN, Mr. Haruna Mustafa, the apex bank stated that daily withdrawal of cash from ATMs will now be N20,000, subject to N100,000 per week. They further instructed that only the N200 and lower denominations will be loaded in the ATM machines.

Mobile money operators and organized bank customers, under the aegis of Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) have however found the conditions given by the central bank unacceptable and therefore, threatened to do what they can to show their opposition to the new regulations. According to them, it will dampen their business of mobile banking.

The AMMBAN President, Olojo Victor stated that if the CBN limits cash withdrawal, it will send them out of business. His words: ‘We are against this. It is counter-productive. It does not represent what the CBN initially stood for in terms of financial inclusion. This is not driving us forward.’

‘It is a punishment for an average Nigerian. A bag of rice is N48,000. That means if I want to go to the market I can’t take cash. How will I do the transaction?’

‘We don’t have the technological infrastructure to support this policy. Nigerians have not been sensitized. There is no alternative and you are taking out cash. You are running a cash-dominant economy as we speak.

The CBN circular reads thus: ‘Further to the launch of the redesigned naira notes by President Muhammadu Buhari on Wednesday, November 23, 2022, and in line with the cashless policy of CBN, all deposit money banks and other financial institutions are hereby directed to note and comply with the following: the maximum cash withdrawal over the counter by individuals and corporate organizations per week shall henceforth be N100,000 and N500,000 respectively.’

‘Withdrawals above these limits shall attract processing fees of 5.0 per cent and 10 per cent, respectively; third-party cheques above N50,000 shall not be eligible for payment over the counter, while extant limits of N10 million on clearing cheques still subsist; the maximum cash withdrawal per week via Automated Teller Machine shall be N100,000 subject to a maximum of N20,000 cash withdrawal per day.’

‘Only denominations of N200 and below shall be loaded into the ATMs; the maximum cash withdrawal via the point of sales terminals shall be N20,000 daily. In compelling circumstances, not exceeding once a month, where cash withdrawals above the prescribed limits are required for legitimate purposes, such cash withdrawals shall not exceed N5 million and N10 million for individuals and corporate organisations, respectively, and shall be subject to the referenced processing fees in (1) above, in addition to enhanced due diligence and further information requirements.’

‘Further to (6) above, you are required to obtain the following information at the minimum and upload same on the CBN portal created for the purpose.’

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