The North-South Economists’ Forum, NSEF, a focus group of development economists, has said that the Central Bank of Nigeria, CBN, cash withdrawal policy was meant to check money laundering and curtail fraudulent activities within the nation’s financial system.

The Central Bank of Nigeria (CBN) has announced a revision of weekly cash withdrawal limit to N100,000 for individuals and N500,000 for corporate organisations.

According to a memo by Haruna Mustapha, CBN’s Director of Banking Supervision, this is sequel to the official launch of the redesigned naira notes by President Muhammadu Buhari on Oct. 23.

Mustapha said the measure was also in line with the cashless policy of the apex bank.

In a statement on Tuesday, signed by its Chairman, Malam Ahmed Abdulkadir and Secretary, Dr. Chima Eboh, the body of development economists lauded the CBN, adding that Nigerians should bear the expected inconvenience with the hope that it will help bring sanity to the economy.

The Forum stressed that a lot of fraudulent activities have been going on in the banking sector with huge cash withdrawals.

While releasing the memo, the CBN urged all Deposit Money Banks (DMBs) and Other Financial Institutions (OFIs) to comply with the new measure.

“The maximum cash withdrawal over the counter (OTC) by individuals and corporate organisations per week shall henceforth be N100,000 and N500,000 respectively.

“Withdrawal above these limits shall attract processing fees of five per cent and 10 per cent respectively.

“Third party cheques above N50,000 shall not be eligible for payment over the counter, while extant limits of N10 million on clearing cheques still subsist.

“The maximum cash withdrawal per week via Automated Teller Machine (ATM) shall be N100,000 subject to a maximum of N20,000 cash withdrawal per day.

“Only of N200 and below shall be loaded into the ATMs,” he said.

The director added that maximum cash withdrawal via Point of Sale (PoS) terminal was also N20,000 daily.

He said in compelling circumstances, not exceeding once a month, where cash withdrawal above the prescribed limits was required for legitimate purposes, the apex bank could give concession.

“Such cash withdrawals shall not exceed five million Naira and N10 million for individuals and corporate organisations, respectively and shall be subject to the referenced processing fees,” he said.

Mustapha said monthly returns on cash withdrawal transactions above the specified limits should be rendered to Banking Supervision Department.

“Compliance with extant AML/CFT regulations relating to KYC, ongoing customer due diligence and suspicious transaction reporting is required in all circumstances.

“Customers should be encouraged to use alternative channels, like Internet banking, mobile banking apps, USSD, cards/POS and eNaira to conduct their banking transactions,” he said.

He said the new directives would take effect from Jan. 9, 2023.