Business and Economy

CBN increases weekly cash withdrawal limit to N500,000 and N5 million

In a circular dated December 21, 2022, title: “Naira Redesign Policy – Revised Cash Withdrawal Limits” and addressed to all DMBs, OFIs, PSB, PMBs, MFBs, MMOs and Agents, the Central Bank of Nigeria has revised the weekly cash withdrawal limits upwards to N500,000 for individuals and N5 million for corporate organizations.

All the other provisions for weekly cash withdrawals above the limits as stated in earlier circular and directives by the CBN were retained. These includes the processing fee of 3% for individuals and 5% for organizations. The payee of such cash withdrawals above the stipulated limits must present a valid means of identification, BVN, TIN of both the payee and the payer and approval in writing by the MD/CEO of the financial institution approving the payment.

In addition third party cheques above N100,000 are not eligible for payment across the counter. The banks are also required to render monthly returns on all withdrawals above the limits to the Central Bank. You can read the circular here

These turnaround by the CBN is no doubt due to immense pressure from many quarters and the position taken by the National Assembly asking the CBN to suspend the initial cash withdrawal limits imposed on citizens. It will also be recalled that some groups have approached the courts to seek an injunction against the CBN on the cash withdrawal limits.

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