CBN might adjust cash withdrawal limits of 100k & 500k

New naira notes
CBN Governor announced that the apex institution would look into tweaking the weekly cash withdrawal limit

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ABUJA-Central bank of Nigeria, CBN, Governor, Mr. Godwin Emefiele, yesterday announced that the apex institution would look into tweaking the weekly cash withdrawal limit of N100,000 and N500,000 for both individuals as well as corporate bank customers.

Emefiele, who spoke to State House correspondents after meeting closed doors and President Muhammadu Buhari in Daura, Katsina State, assured that the apex bank would not be rigid about the policy since it is not designed to harm anyone but to help strengthen the nation’s economy.

Emefiele also said that bank customers deposited more than N1 trillion in the old notes and that CBN has issued notes of the latest N200, N500, and N1,000 notes to banks in preparation for distribution to their customers ahead of December 15 that were scheduled to be the date for the distribution of new note.

New Cash Withdrawal Limits

It is worth noting that CBN announced on Tuesday the revised limit for cash withdrawals with a maximum of N100,000 cash withdrawals per week for individuals and N500,000 in cash per week for corporate organizations.

In response to the reaction to the new limitations, Emefiele explained that more and more countries that are embracing digitalization have gone cashless, and the move was not aimed at anyone,

Emefiele, who claimed that Emefiele visited Daura to meet the. President and update him on the developments within the CBN and the economy. He disclosed that President Buhari “Was happy and said we should carry on with our work, no need to fear, no need to bother about anybody.”

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The Apex Bank’s current policy is aimed at improving and growing the Nigerian economy. He added, “We can only continue to appeal to Nigerians to please see this policy the way we have presented it.”

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In response to the opposition from the Senate, He said, “Well, the Senate is the National Assembly; they are the branch of government that is legislating and, from time to time, we inform them of what’s happening and our policies. I know they’ve requested a briefing, and we’ll be briefing them.

“But it’s crucial for me to state that the cashless system was introduced in 2012. However, on three to 4 occasions, we were forced to end the policy as we believed that we needed to be prepared and strengthen our payment technology in Nigeria.

“Between 2012 and 2022, which is ten years, many digital channels were put into the country to aid in completing banking and financial transactions in Nigeria.

Agent Banks

“We have heard about people living in rural areas. But even online banking has indeed been a thing. When I was driving to Daura, I saw the kiosk with a super agent. Because of this, we decided there was a need to strengthen the payment system infrastructure. We currently have 1.4 million Super Agents covering all different regions in the nation, as well as all local authorities and villages across the country.

“And I’ve told my colleagues that sure of their names are available on the CBN website. We will reveal the full names of Super Agents. Super agents differ from microfinance and microfinance banks, which are different from other banks. Having 1.4 million such agents would be as great as having 1.4 million banking locations where individuals can make transactions.

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“We believe Nigeria is a country of the size and the most affluent economy in Africa which is why we should jump into the cashless economy. We must not accept the situation to continue where over 85 percent of cash available isn’t in the banks. A growing number of nations that have adopted digitalization have switched to cashless.

“I told people at different gatherings that it is not a snare to anyone. It is a policy to promote the development and goodwill of the Nigerian economy, and we will continue to call on Nigerians to see this policy as we’ve presented it.

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“We will review how the system is performing now and then since I can’t claim that we’re going to be uncompromising. It isn’t to say that we’ll reverse the process, and it’s in no way to suggest that we’ll alter the time, but rather it could be about changing a certain amount to be a slightly higher or a less and all of these.

“We will do it since we are human beings, we are trying to ensure that our actions are pleasant for our fellow citizens. We don’t wish to make life more difficult for people. Therefore, there is no need to be concerned. The CBN is watching the situation and I’m able to assure you that we’re conscious of our obligations and can do the best in the best interest of Nigeria as well as Nigerians.”

New Naira notes distribution.

Concerning the distribution of the new Naira notes, Emefiele stated: “There are so many issues arising, all of which are centered on the new currency, and banks had received the fact that it was only Wednesday the new currency, and we are hopeful that banks will shortly begin to distribute the new currency to their customers.

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“I can only guarantee the public that this will be a round so let’s be at ease, as the old currency was legal tender until January 31 2023. Also, I’m going to play a joke that each of the paints (new notes) and the unpainted (old notes) will function simultaneously as legal tender. Then, on January 31, the non-painted version is not going to be useful to you in the future and you should return this to the bank as soon as you can,” He added.

N1trn old notes deposited.

Concerning the value of the old notes that the CBN has been able to bring them back to vaults, he explained: “At the Central Bank we have accumulated more than half a trillion dollars and together with banks, we’ve got nearly half of a trillion. What we’ve done at the Central Bank is to move more of our employees from various departments to processing currency, to ensure that they deal with this cash as swiftly as they can and, from there, banks are able to transfer what they have to their cash.”

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