CBN places restrictions on the amount of naira that can be withdrawn following redesign

RESTRICTIONS have been placed on the amounts of cash Nigerians can withdraw from banks by the Central Bank of Nigeria (CBN) in response to the scarcity brought about by the redesigning of the naira.

On November 23, the CBN launched redesigned Nigeria's ₦‎200, ₦‎500 and ₦‎1000 banknotes, saying the naira was long overdue to wear a new look. According to President Muhammadu Buhari, the new naira banknotes have been fortified with fresh security features that make them difficult to counterfeit.

With the introduction of the new notes, Nigerians have until January 31 2023 to hand in their old notes but is certain create a rush. In a bid to avoid any chaos during the exercise, the CBN has issued a revised cash withdrawal policy, stating that withdrawals above N100,000 and N500,000 will henceforth attract  a 5% and 10% levy respectively.

Also, the CBN revealed that automated teller machines will only dispense N200 notes and those of lower denominations from now on. CBN director of banking supervision, Haruna Mustafa, has written to all banks, issuing these instructions, pointing out that a third-party cheque above N50,000 will not be eligible for payment over the counter, and maximum ATM withdrawal shall be N20,000 per day.

It added that the maximum cash withdrawal via the point of sale terminal should be N20,000. Also, the maximum cash withdrawal over the counter by individuals and corporate organizations per week shall henceforth be N100,000 and N500,000, respectively.

Back on October 26, the CBN made known its plan to redesign 200, 500 and 1000 naira denominations. It gave December 15, 2022, as the date to start circulating the new notes, while it plans to stop the usage of the old naira notes from January 31, 2023.