BusinessMoneyNewsNigeriaCBN Reviews Controversial Weekly Cash Withdrawal Policy

Fifteen days after pegging weekly over-the-counter cash withdrawals by individuals and corporate organisations at N100,000 and N500, 000, respectively, the Central Bank of Nigeria (CBN) has reviewed the controversial policy.

In a memo issued on Wednesday and signed by Haruna Mustafa, the director of banking supervision, the CBN announced a new maximum cash withdrawal limit of N500,000 and N5,000,000 per week for individuals and corporate entities, respectively.

The processing fee for withdrawals above the above-mentioned limits was also reviewed and fixed at three and five per cent for individuals and corporate organisations, respectively in contrast to the five and ten per cent of the earlier directive.

For such withdrawals, the apex bank directs banks to obtain the payee’s valid means of identification (national ID, driver’s license, international passport) and Bank Verification Number (BVN), as well as the Tax Identification Number (TIN) of the payee and the payer.

While the 6 December policy stated that third-party cheques above N50,000 shall no longer be eligible for payment over the counter, the revised policy states that “Third-party cheques above N100,000 shall not be eligible for payment over the counter.”

The limit of N10,000,000 on clearing cheques, however, remains valid.

Mustafa said the review was based on feedback received from stakeholders, adding the latest directive supersedes that of 6 December 2022 and takes effect nationwide from 9 January 2023.

By Ezinwanne Onwuka (Senior Reporter)

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