stmYou’ve probably heard the news by now that the Central Bank of Nigeria (CBN) has placed a new cash withdrawal limit for both individuals and businesses.
In this article, we’ll break down the new CBN cash withdrawal limit and explain what it means for you and your business. We’ll also offer some tips on how to make the most of your money while still staying within the limits set by the CBN.
What Is Cash Limit?
In a move to control the circulation of money and to reduce the amount of cash in the system, the Central Bank of Nigeria (CBN) has placed a cash withdrawal limit on individuals and businesses.
Why Implement a Cash Limit?
The Central Bank of Nigeria (CBN) has announced that it is implementing a cash withdrawal limit for both individuals and businesses. This announcement has come as a surprise to many, as the CBN has not released any information about this new policy.
The CBN has not given a reason for this new policy, but it is speculated that the main reason is to reduce the amount of cash in circulation. This will help to control inflation, as it will make it more difficult for people to spend their money.
It is important to note that this cash withdrawal limit applies only to Nigerian currency. So, if you are traveling to Nigeria, you will be able to withdraw the equivalent amount in Nigerian currency.
The New CBN Cash Withdrawal Limit for Individuals in Nigeria
You will be pleased to know that the Central Bank of Nigeria (CBN) has just announced a new cash withdrawal limit for individuals. This new limit is set at N100,000 naira per week, that is N20,000 cash withdrawals per day.
This new withdrawal limit is important for a number of reasons. Firstly, it will help to reduce the amount of cash that is currently in circulation. This will, in turn, help to control inflation and stabilize the economy. Secondly, it will also help to protect businesses from fraudulent activities.
It is important to note that this limit is only for individual Nigerian citizens and not for businesses. Businesses will still be able to withdraw a huge amount of cash from their bank accounts.
The New CBN Cash Withdrawal Limit for Businesses in Nigeria
The Central Bank of Nigeria (CBN) has released a new cash withdrawal limit for businesses in Nigeria. The new limit is N500,000 per day. This limit is for businesses with a turnover of up to N10 million per month. For businesses with a turnover of more than N10 million per month, the limit is N1 million per day.
The CBN has said that the new limits will be reviewed on a quarterly basis.
Additional Measures to Curb Illicit Financial Flows
In order to further curb illicit financial flows, the Central Bank of Nigeria has put in place the following additional measures:
- With effect from next year, all cash withdrawals from bank accounts by individuals and businesses in Nigeria shall be limited to N20,000 per day.
- Transactions above the N20,000 cash withdrawal limit shall be effected through electronic means only.
- With effect from next year, all banks’ customers’ domiciliary accounts shall be converted to naira-denominated accounts.
- All domestic transactions above N10 million shall henceforth be effected through electronic means only.
FAQs on the New CBN Cash Withdrawal Limit
You might have a few questions about the new CBN cash withdrawal limit, and that’s totally understandable. So let’s go over some of the most Frequently Asked Questions, shall we?
- How much cash can I withdraw from my account?
For individuals, the limit is N20,000 per day. For businesses, the limit is N100,000 per day.
- Can I make more than one withdrawal in a day?
Yes, you can make multiple withdrawals in a day, but the total amount cannot exceed the daily limit.
- What if I need to withdraw more than the limit?
If you need to withdraw more than the limit, you will need to make a request at your bank and provide justification for the amount you wish to withdraw.
- What is the rationale for this new policy?
The new policy is meant to ensure that cash is evenly distributed across all bank customers, and to reduce the amount of cash that is being hoarded.
Conclusion
The CBN has put in place a cash limit to help curb money laundering and terrorism financing. The CBN is also hoping to reduce the amount of cash in circulation to help control inflation.
What do you think about the CBN’s cash limit? Do you think it will help reduce money laundering and terrorism financing? Do you think it will help control inflation? Let us know in the comments section.
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