Following popular pressure, Nigeria’s central bank has approved significant hikes in the weekly cash withdrawal caps.
The Central Bank of Nigeria (CBN) restricted weekly cash withdrawals two weeks prior to the decision, in an effort to reduce the amount of cash used in the economy.
The CBN has previously voiced worries about ransom payments to kidnappers and bandits, currency counterfeiting, and money that is not in the banking system.
“The maximum weekly limit for cash withdrawal across all channels by individuals and corporate organizations shall be N500,000 ($1,100) and N5,000,000, respectively,” the CBN said in a statement.
“The CBN recognises the vital role that cash plays in supporting underserved and rural communities and will ensure an inclusive approach as it implements the transition to a more cashless society,” the bank added.
On December 6, the central bank reduced weekly cash withdrawals for individuals from 2.5 million naira per day to 100,000 naira.
For enterprises, the daily cap of three million naira was reduced to a weekly cap of 500,000 naira.
Nigerians who depend on cash for business expressed their outrage and disgust at that choice.
Since many individuals in the unorganized sector lack bank accounts, they feel that the cash limits would negatively affect their enterprises.
Nigeria has also launched new banknotes of 200, 500 and 1,000 naira.
Although the new notes came into use on December 15, Nigerians have until January 31 to turn in old notes when they cease to be legal tender.
