In order to accelerate the move towards a "cashless society" and increase the usage of the central bank's digital currency (CBDC) "eNaira", the Central Bank of Nigeria issued a new order to significantly reduce the daily limit for cash withdrawals from ATMs.
The Central Bank of Nigeria issued a notice on December 6 that the daily withdrawal limit for individual customers was reduced from 150,000 naira ($338) to 20,000 naira ($45).
In addition, individuals cannot withdraw more than 100,000 naira (US$225) in cash per week, and businesses cannot withdraw more than 500,000 naira (US$1,125). If the withdrawal limit is exceeded, individuals will be charged a 5% handling fee and businesses will be charged. A 10% handling fee is charged.
Haruna Mustafa, Director of the Banking Regulatory Authority, said in the above notice:
Customers should be encouraged to use alternative channels (online banking, mobile apps, USSD, card swipe/POS, eNaira, etc.) for banking transactions.
The move shows that the Central Bank of Nigeria is fully committed to forcing people to use digital payment systems, including e-Naira.
Nigeria launched the central bank digital currency (CBDC) - "eNaira" in October 2021, but the adoption rate has been quite slow. As of October 25, less than 0.5% of the population has used eNaira.
On October 26, Godwin Emefiele, Governor of the Central Bank of Nigeria, pointed out that cash outside banks accounts for 85% of the currency in circulation, and nearly 4 under 30 adults do not have bank accounts, so redesigned high-denomination banknotes will be issued to absorb excess cash.
This Article Daily Withdrawal Limit Drops to $45! Nigeria “forces all citizens to use CBDC” first appeared on Blockchain.
