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Concerns As CBN’s Withdrawal Cash Limits Begin

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THE cash withdrawal limits set by the Central Bank of Nigeria (CBN) become effective today, January 9, 2023 amid concerns over the slow spread and quality of three newly redesigned naira notes.

The CBN had on December 6, 2022, ordered Deposit Money Banks (DMOs) and other financial institutions to ensure that weekly over-the-counter (OTC) cash withdrawals by individuals and corporate entities do not exceed N100,000 and N500,000, respectively.

It had also pegged maximum daily withdrawals via Automated Teller Machines (ATMs) and Point Of Sale (PoS) terminals at N20,000 and said only denominations of N200 and below would be loaded into the ATMs.

The CBN had said the new policy was sequel to the launch of the redesigned N200, N500 and N1,000 notes by President Muhammadu Buhari on November 23, 2022.

The directive created controversy and outrage from millions of Nigerians and members of the National Assembly who disapprove of the policy. Many PoS operators had said the policy would strangulate their activities and rob them of employment while politicians said it was targeted at opposition parties ahead of the 2023 general elections.

But the apex bank on December 21, 2022 adjusted the weekly cash withdrawal limits to N500,000 for individuals and N5m for corporate firms.

Bright Olorungbotemi

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