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The Central Bank of Nigeria (CBN) had to raise significantly caps on weekly cash withdrawals just two weeks after its imposition in the face of public discontent
The Central Bank of Nigeria (CBN) had to raise significant caps on weekly cash withdrawals just two weeks after its imposition in the face of public discontent. With the rise in the number of withdrawals, the maximum weekly withdrawal limit for all individuals and companies will be 500,000 nairas (1,049 euros) and 5 million nairas respectively.
The central bank acknowledged the vital role cash plays in supporting rural and disadvantaged communities for ensuring an inclusive approach in its transition to a cashless society to check counterfeit bills, black money (the volume of cash out of the banking system), and the huge amounts of ransom money being paid to bandits and kidnappers.
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In a haste decision, without giving any prior notice to the public, on December 6, the CBN drastically reduced the weekly cash withdrawal limit for individuals from 2.5 million nairas to 100,000 nairas overnight, as reported by www.trendsnafrica.com. The limit applicable to companies was also reduced from 3 million nairas per day to 500,000 nairas per week. This has created a public commotion, especially for those who are in the informal economy, where many do not have a bank account. Importantly, the Central bank also launched new bills in the denominations of 200, 500, and 1,000 n naira bills.
