Reminder: The CBN Cash Withdrawal Limits, All you Need to Know

New Naira Banknotes

I almost forgot about the reversed Central Bank of Nigeria (CBN) cash withdrawal limit that took effect today, January 9, 2023, but for the timely reminder from the First Bank (FBN). The reminder titled "Important Update on Cash Withdrawal Limits" was timely and, though with some important details, was all straight to the point. I thought it wise to bring this reminder to our Nigerian audience because I know that not all are privileged to be banked by the prestigious FBN, and not all other banks thought it wise to remind their customers of this important piece of information. Needless to say, I want to remind you that when it comes to commercial banks in Nigeria, it is First Bank of Nigeria and the others.

The Reminder from FBN

"Please be informed that following the Central Bank of Nigeria (CBN) regulatory directives with respect to cash withdrawal, effective nationwide from Monday, January 9, 2023:

The maximum weekly cash withdrawal limit for individuals across all channels is N500,000. When a cash withdrawal is necessary for a valid reason above this limit, a 3% processing fee will be charged.

Corporate organisations will only be able to make a maximum cash withdrawal of N5 million per week across all channels. For withdrawals above the limit, a 5% processing fee will be charged.

Please note that we will collect the following information from you and present them to CBN for transactions that exceed the limits of N500,000 for individuals and N5 million for corporate organisations:

• Valid means of identification (National ID, International Passport, or Driver’s License).
• Bank Verification Number (BVN).
• Tax Identification Number (TIN) of both the payee and the payer.
• Approved in writing by our CEO authorizing the withdrawal.

Third-party cheques above N100,000 shall not be eligible for payment over the counter, while the existing limit of N10 million on clearing cheques still subsists".

Conclusively

The above requirements for withdrawing more than the CBN-specified limit is a CBN rule that will apply to all banks. Even though the cash withdrawal limit is still on the high side, it should not be a problem for most Nigerians, who barely have the money to withdraw within the time frame. The cashless economy has come to stay, and it will over time change the dynamics of business in Nigeria. We should prepare and move with the times, not fight them.

Articles that are also recommended for you:

• CBN Governor Bows to Pressure to Raise Cash Withdrawal Limits
• Cashless Policy: CBN Limits Cash Withdrawal, 3 Careers/Businesses At Risk Of Extinction
• CBN Vows To Curb Inflation As Buhari Unveils New Naira Notes

Shalom! 

FAQs

When will the new withdrawal policy take effect?

The new cash withdrawal limit is effective nationwide from Monday, January 9, 2023.

What are the new cash withdrawal limits in Nigeria?

The maximum weekly cash withdrawal limit for individuals across all channels is N500,000. and a maximum cash withdrawal of N5 million per week across all channels

What is the full meaning of CBN?

Central Bank of Nigeria. The Central Bank of Nigeria is the central bank and apex monetary authority of Nigeria established by the CBN Act of 1958. The major regulatory objectives of the bank as stated in the CBN Act are to: maintain the external reserves of the country, promote monetary stability and a sound financial, environment, and act as a banker of last resort and financial adviser to the federal government.

What is the penalty for a withdrawal above the withdrawal limits?

When a cash withdrawal is required for a valid reason above this limit, a 3% and 5% processing fee for individual and corporate accounts, respectively, will be charged