Recently the Central Bank of Nigeria placed new restrictions and limits on the amount of cash citizens are able to withdraw from ATMs, Bank counters and other related physical banking structures. The new decision experts believe will encourage the usage of the nation’s CBDC, eNaira, reduce money laundering and improve the forex value of Naira.
The directive orders that citizens and businesses cannot withdraw amounts exceeding $45 (20,000 nairas) per day and $225 (100,000 nairas) per week from ATMs. Withdrawals from banks of over $225 (100,000 nairas) and $1,125 (500,000 nairas) will be subject to processing fees of 5% for individuals and 10% for businesses.
The order also details that cashback via point-of-sale terminals cannot exceed $45 (20,000 nairas) per day either.
Haruna Mustafa, the director of banking supervision, stated that “Customers should be encouraged to use alternative channels (eNaira, Internet banking, mobile banking apps, USSD, cards/POS, etc.) to conduct their banking transactions.”
Nigeria was one of the first governments to launch a CBDC, unveiling the eNaira in October 2021. However, traction has been low. Only 0.5% of Nigerian citizens are estimated to be using the digital Naira, according to a Bloomberg report. The latest policy regulation seeks to increase the usage of the Central Bank Digital Currency, eNaira.
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