Banks will soon distribute new naira notes, withdrawal limit still stands – CBN

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The Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, revealed that the new naira notes have already been distributed to commercial banks and that banks will soon begin to distribute them to the general public.

Emefiele made the announcement on Thursday, following a visit to President Muhammadu Buhari in Daura, Katsina State.

In response to criticism from the National Assembly and the general public about the cash withdrawal policy, the CBN governor said that the restriction was not intended to harm anyone.

He emphasized that it was instead intended to strengthen the nation’s economy, assuring that there would be no policy rigidity or reversal.

He urged Nigerians to support the policy while the central bank monitors the situation in order to alleviate any difficulties.

The Senate and House of Representatives had previously criticized the Central Bank of Nigeria’s announcement of revised cash withdrawal limits of ₦100,000 for individuals and ₦500,000 for businesses, arguing that it would exacerbate the current economic situation.

New notes

The Central Bank of Nigeria (CBN) has directed 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 100,000 and 500,000, respectively.

On Tuesday, the CBN announced this in a circular signed by CBN Director of Banking Supervision Haruna Mustafa.

According to the apex bank, the regulatory directives will go into effect nationwide on January 9, 2023.

The CBN also set a daily withdrawal limit of ₦20,000 via Point of Sale (PoS) terminals.

“The maximum cash withdrawal per week via Automatic Teller Machine (ATM) shall be ₦100,000 subject to a maximum of ₦20,000 cash withdrawal per day.

“Only denominations of ₦200 and below shall be loaded into the ATMs,” the bank also said, adding that the new policy is sequel to the launch of the redesigned ₦200, ₦500 and ₦1,000 notes by President Muhammadu Buhari on November 23, 2022.

CBN Governor Godwin Emefiele announced the redesign of the three bank notes on October 26, 2022, stating that the new and existing currencies will remain legal tender and circulate together until January 31, 2023.

The central bank believes that the new notes will reduce the amount of cash in circulation, thereby limiting the heinous activities of ransom-demanding kidnappers and election-rigging politicians.

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