Governor of the Central Bank of Nigeria, Godwin Emefiele.

The Central Bank of Nigeria CBN may have at last bowed to pressure mostly from politicians as it effects an upward review of the weekly cash withdrawal limit from the former N100, 000 for individuals and N500, 000 for corporate organisations to N500, 000 for individuals and N5million for corporate bodies respectively. This new limit is expected to come into effect from January 9, 2023.

This upward review is coming 15 days, after the apex bank issued an earlier policy directive precisely on December 6, 2022, which pegged individual cash withdrawal limit at N100, 000 per week and N500, 000 corporate entities. This directive did not however go down well with politicians, as both the Senate and House of Representatives have had to issue separate summons to the governor of the CBN, Godwin Emefiele to explain and reverse the policy.

The upward review directive is contained in a circular issued Wednesday, December 21, 2022 and signed by the Director of Banking Supervision, Haruna B. Mustafa.

Under the new policy, however, the CBN retained the caveat for legitimate cash withdrawal above the limits as such requests shall be subject to a processing fee of three per cent and five per cent respectively for individuals and corporate organisations, but through a portal with the customer’s details, including valid ID card, tax ID and BVN.

It also insists that third party cheques above N100,000 shall not be eligible for payment over the counter, while the extant limit of N10 million on clearing cheques still subsists.

 According to the statement: “The maximum weekly limit for cash withdrawal across all channels by individuals and corporate organisations shall be N500,000.00 and N5,000,000.00 respectively. The above directive supersedes that of December 6, 2022 and takes effect nationwide from January 9, 2023”.

Meanwhile, in a separate letter to all Deposit Money Banks DMBS and Other Financial Institutions Payment Service Banks PSB, Primary Mortgage Banks PMB. Microfinance Banks MFBs. Mobile Money Operators MMOs and Agents, CBN said the review was based on feedback it got from stakeholders after issuing the December 6 circular that limited cash withdrawal to N100,000 for individuals and N500,000 for companies.

The letter further reads in part: “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”.

Recall also that the Directorate of State Security DSS had approached a Federal High Court in Abuja for a warrant of arrest for the CBN governor, Emefiele on allegations of terrorism financing and other money laundering –related crimes, which the court declined, citing lack of credible evidence.

Many stakeholders believe that this action of the DSS must have been influenced by some desperate politicians, who feel that their desire to buy votes in the coming 2023 general elections in their bid to win may be adversely affected.