The bank recently announced directives to limit the amount of cash in circulation in Africa’s largest economy.
Nigeria’s central bank has significantly increased the limits it has set for weekly cash withdrawals, easing restrictions it has put in place to limit the use of cash.
Individuals will now be allowed to withdraw up to 500,000 Nigerian naira ($1,122) a week, up from the 100,000 limit ($225) set on December 6. Companies will be allowed to withdraw 5 million naira ($11,220) a week, up from the 500,000 naira limit.
Most Nigerians don’t have bank accounts and use informal markets where cash is preferred and some say withdrawal limits can hurt people and businesses.
Haruna Mustapha, CBN’s supervisory director, said: “The Central Bank of Nigeria (CBN) recognizes the important role of cash in supporting rural and disadvantaged communities and will ensure an approachable approach. holistic approach when making the transition to a more cashless society”. in the circular announcing the revised limits.
Last week, the central bank also started circulating redesigned 200, 500 and 1,000 naira notes under a plan to curb double-digit inflation and move towards a cashless economy. Citizens have until January 31 to return the old bills, when they are no longer valid.
Struggling individuals and businesses can request withdrawals of amounts in excess of the limit. The processing fee is three percent for individuals and five percent for companies. Previously, even for exceptional cases, limits were set at 5 million naira ($11,220) and 10 million naira ($22,440) respectively.
