Banking Sector
Finally, CBN Increases Withdrawal Limit
The Central Bank of Nigeria has increased the withdrawal limit to N500,000 and N5 million for both Individuals and Corporate Bodies respectively.
Amid pressure from several quarters, the Central Bank of Nigeria has increased the withdrawal limit to N500,000 and N5 million for both Individuals and Corporate Bodies respectively.
The upward review is coming as a succour to a number of people including the mobile money operators and agents.
In a letter sent to all Deposit Money Banks (DMBS) and Other Financial Institutions Payment Service Banks (PSB), Primary Mortgage Banks (PMB) Microfinance Banks (MFBs), Mobile Money Operators (MMOs) and Agents), the apex bank said the review was based on feedback it got from stakeholders after issuing the December 6 circular that limited cash withdrawal to N100,000 for individuals and N500,000 for companies
Investors King could recall that a number of associations and individuals have expressed displeasure with the withdrawal limit, stating that it has severe consequences on the economy.
The Association of Mobile Money Operators of Nigeria also wrote a letter to President Muhammadu Buhari, noting that the policy is capable to paralyse their business.
Similarly, the House of Representatives also called for a review of the policy while summoning the CBN governor to appear before the house for further clarification on the policy.
The CBN had earlier pegged the withdrawal limit to N100,000 per week for individuals, while corporate organisations were limited to weekly withdrawals of N500,000.
A circular signed by the Director of Banking Supervision, Mr Haruna Mustapha and December 21, 2022, partly read, “The maximum weekly limit for cash withdrawal across all channels by individuals and corporate organisations shall be N500,000 and N5,000,000, respectively”.
“In compelling circumstances where cash withdrawal above the limits in (1) above is required for legitimate purposes, such requests shall be subject to a processing fee of three per cent and five per cent for individuals and corporate organisations, respectively”.
The apex bank further warned that any bank that connives with its customers to circumvent the policy would face severe sanctions.