CBN restricts cash withdrawals to N100,000, N500,000 per week

Effective January 9, 2023, individuals can only withdraw N100,000 cash per week, while organisations are limited to N500,000 from over the counter, Point of Sale Machines (POS), or the Automated Teller Machines (ATM).

These and other restrictions are parts of the new transaction limits imposed by the Central Bank of Nigeria (CBN), in a new memo issued to banks today and signed by the Director, Banking Supervision, Haruna B. Mustafa.

Banks are also directed to load only N200 and lower denominations into their ATM.

The directive is contained in a memo classified as Confidential, titled: “Naira Redesign Policy – Revised Cash Withdrawal Limits,” sent to commercial banks, Micro-Finance Banks and others.

The memo reads: “Further to the launch of the redesigned naira notes by the President of the Federal Republic of Nigeria, on Wednesday, November 23, 2022, and in line with the cashless policy of the CBN, all deposit money banks (DMBs) and other financial institutions (OFIs) are hereby directed to note and comply with the following:

1. The maximum cash withdrawal over the counter by individuals and corporate organisations per week shall henceforth be N100,000 and N500,000 respectively. Withdrawals above these limits shall attract processing fees of 5% and 10%, respectively.
2. Third-party cheques above N50,000 shall not be eligible for payment over the counter, while extant limits of N10,000,000 on clearing cheques still subsist.
3. The maximum cash withdrawal per week via Automated Teller Machine shall be N100,000 subject to a maximum of N20,000 cash withdrawal per day.
4. The maximum cash withdrawal via the point of sale terminal shall be N20,000 daily.
5. The maximum cash withdrawal via the point of sale terminal shall be N20,000 daily.

The CBN also said in compelling circumstances, not exceeding once a month, “where cash withdrawals above the prescribed limits would be required for legitimate purposes, such cash withdrawals shall not exceed N5,000,000.00 and N10,000,000.00 for individuals and corporate organisations, respectively.

Furthermore, such withdrawals “shall be subject to the referenced processing fees in (1) above, in addition to enhanced due diligence and further information requirements.”

Finally, please note that aiding and abetting the circumvention of this policy will attract severe sanctions.

Banks are also required to obtain the following information at the minimum and upload same on the CBN portal created for the purpose:

1. Valid means of identification of the payee (National Identity Card, International Passport, Driver’s License);
2. Bank Verification Number of the payee;
3. Notarised customer declaration of the purpose of the cash withdrawal;
4. Senior management approval for the withdrawal by the Managing Director of the drawee, where applicable; and,
5. Approval in writing by the MD/CEO of the bank authorising the withdrawal.

The circular continued: “Please further note the following:

1. Monthly returns on cash withdrawal transactions above the specified limits should be rendered to the Banking Supervision Department.
2. Compliance with extant AMUCFT regulations relating to the KYC, ongoing customer due diligence and suspicious transaction reporting etc., is required in all circumstances.
3. Customers should be encouraged to use alternative channels (internet banking, mobile banking apps, USSD, cards/POS. eNaira, etc.) to conduct their banking transactions.

The apex bank also warned that “aiding and abetting the circumvention of this policy will attract severe sanctions,” adding that “The above regulatory directives take effect nationwide from January 9, 2023. Please be guided accordingly.”