Central Bank of Nigeria limits cash withdrawals to promote CBDC

Nigerian authorities have imposed withdrawal limits as part of promoting cashless alternatives and expanding the use of the national digital currency, eNaira. говорится in the central bank directive (CBN).

Under the document, off-exchange withdrawal limits for individuals and organisations are 100,000 naira ($225) and 500,000 naira ($1,125) per week respectively.

“Exceeding these limits will incur a 5% and 10% commission,” the central bank said.

ATMs will allow withdrawals of 100,000 naira ($225) per week, with a daily limit not exceeding 20,000 naira ($45). Machines will dispense only 200-naira banknotes ($0.45).

For point-of-sale terminals, limits are set at 20,000 naira ($45) per day.

“In extraordinary circumstances, no more than once a month, when cash withdrawals beyond the set limit are required for legitimate purposes, such a transaction should not exceed 5 million naira ($10,700) and 10 million naira ($21,400) for individuals and legal entities, with a commission payable,” the directive said.

CBN Director of Bank Supervision Haruna Mustafa noted that the aim of the changes is to encourage card payments, use of eNaira, internet banking and mobile apps.

On October 25, 2021, Nigerian President Muhammadu Buhari announced the launch of the national digital currency.

IMF warned that the digital naira could pose risks of money laundering and financing of terrorism. Experts at the institution saw such threats in cross-border use of CBDC.

In August 2022, the CBN governor Godwin Emefiele said that the eNaira was used for transactions totaling 4 billion naira ($9.3 million at the then rate).

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