By Ismail Auwal
The Central Bank of Nigeria (CBN) has announced a review of its controversial new cash withdrawal policy, which pegged weekly withdrawal to 100,000 for individuals.
The current review allows individuals to withdraw up to N500,000, and N5 million for corporate entities per week.
In a letter signed by the Director of Banking Supervision, Haruna.B. Mustafa, the apex bank directed banks to charge 3% and 5% for individuals and corporate organizations where cash withdrawals exceed the stated limit for legitimate purposes.
CBN also noted that cash withdrawal above N100,000 shall not be eligible over the counter.
“Customers should be encouraged to use alternative channels (internet banking, mobile banking apps, USSD, cards/POS, eNaira, etc.) to conduct their banking transactions.
“Bank and Mobile Money Agents are important participants in the financial system, enabling access to financial services in underserved and rural communities. They will continue to perform these strategic functions, in line with existing regulations governing their activities.
“The CBN recognizes the vital role that cash plays in supporting underserved and rural communities and will ensure an inclusive approach as it implements the transition to a more cash-less society,” the statement reads.
The above directives supersede that of December 6, 2022 and take effect nationwide from January 9, 2023.
The review follows after the new policy was met with criticism from governors, legislators, and politicians.
The House of Representatives has last week summoned the CBN Governor, Godwin Emefiele, over the new restrictions on cash withdrawals.
