Nigeria has significantly reduced the amount of cash that individuals and companies can withdraw. With this decision, the African country aims to implement the cashless Nigeria policy and increase the use of its own CBDC, eNaira.
The Central Bank of Nigeria (CBN) issued guidelines for financial companies on December 6. According to the directive, individuals and companies in the country can now withdraw 20,000 naira ($45) per day and 100,000 naira ($225) per week from ATMs. In addition, withdrawals from bank branches will be limited to 100,000 naira per week for individuals and 500,000 naira ($1,125) per week for companies. A 5% fee will be charged to individuals who withdraw more than this limit, and a 10% fee to companies.
The maximum amount of cash that can be withdrawn daily from POS points is also limited to 20,000 naira.
Announcing the changes, Haruna Mustafa, Head of Banking Supervision, said:
“Customers should be encouraged to use alternative channels (internet banking, mobile banking applications, USSD, card/POS, eNaira, etc.) to perform their banking transactions.”
On the other hand, these restrictions will be cumulative restrictions for each shot. In other words, a 5 percent service fee will be applied to those who withdraw 45 dollars from the ATM on the same day and then want to withdraw once more. Daily cash withdrawals were previously limited to $338 for individuals and $1,128 for companies.
The usage rate of eNaira has remained low since it was launched on October 25, 2021. The central bank failed to persuade its citizens to use CBDC, and the usage rate remained below 0.5 percent in one year.