The Central Bank of Nigeria (CBN) has decided to rollback its recently-announced monetary policy that restricted personal cash withdrawals to $225 per week instead of $5.638 and corporate withdrawals to $1.125, announcing new withdraw limits this week.
The policy had drawn harsh criticism and outcry from the public press. The bank launched new banknotes in a bid to curb counterfeiting in November, 2022.
The newly announced limits, which are set to apply from January 9, 2023, are five times higher for individuals and ten times higher for corporations in comparison with the earlier restrictions.
Under the adjustment, individuals will now be able to withdraw $1,125, while the limit for corporations will be $11,000 per week.
The bank had previously argued that withdrawal limits were introduced in order to rein in excess funds, promote electronic payments and discourage cash ransom payments to kidnappers.
The Central Bank’s policy was met with harsh criticism, with the Nigerian National Assembly calling on CBN Governor Godwin Emefiele to testify and explain the details of the new measures.
Critics said that such a policy could choke millions of Nigerians, including small businesses.
In November, 2022 the Nigerian Central Bank launched new banknotes in a bid to curb counterfeiting and force excess cash back into the banking system.
Sputnik / ABC Flash Point News 2022.