Anxiety as New Cash Withdrawal Limits Begin Today

Image

By Aduragbemi Omiyale

The new cash withdrawal limits introduced by the Central Bank of Nigeria (CBN) last year have become effective today, Monday, January 9, 2023.

The apex bank first pegged the highest amount of cash a customer can withdraw in a week through over-the-counter (OTC), Automated Teller Machines (ATMs), and Point of Sale (POS) terminals at N100,000 for individuals and N500,000 for corporate organisations.

However, after several criticisms from Nigerians, the bank reviewed the policy and raised the weekly withdrawal for individuals to N500,000 and corporate organisations to N5 million.

The policy was introduced after the CBN redesigned the N200, N500, and N1,000 notes last year due to a high volume of cash in the hands of powerful persons, criminals, especially kidnappers, and others.

In order to control the cash in circulation, the central bank introduced withdrawal limits, directing commercial banks and others to ensure strict checks for cash payments above the limits.

In the circular issued to banks operating in the country, the apex bank said customers would be subjected to a 3 per cent processing fee for withdrawals above the threshold for individuals and 5 per cent for corporate entities.

These processing fees were also reviewed downward by the central bank, as the initial fees were 5 per cent for personal customers and 10 per cent for companies.

A quick check on a few commercial banks in Lagos indicated that the policy is now effective, and customers are trying to adjust to the new system as the highest denomination to be dispensed via the ATMs is N200, as directed by the central bank.

The CBN was hailed and criticised for the new policy because of its timing.

Nigerians head to the polls next month to elect a new president and members of the National Assembly. In March, it will be the governorship and state houses of assembly elections.

Vote-buying has become one tool politicians have devised to prosecute elections lately because of the high level of poverty in the country.

While politicians believe that this new cash withdrawal policy of the CBN is targeted at them after the governor of the bank, Mr Godwin Emefiele, failed in his bid to contest in the 2023 general elections, some Nigerians are of the view that it would reduce vote-buying this year and sanitise the electoral process.

Share
Related Stories
Image
24-January-2024

Fidelity Bank Restores Service After Routine Banking Platform Upgrade

By Aduragbemi Omiyale Fidelity Bank has announced the restoration of its service after a routine upgrade on its banking platform on Tuesday. Yesterday, some customers of the financial institution experienced a few difficulties in completing their financial transactions. The bank later sent a message to its customers, informing them of an upgrade being carried out to ensure they enjoy better services. “Please be informed we are currently carrying out a routine upgrade on our banking platform. “As a result of this, you may experience intermittent service disruptions while using our digital platforms. Kindly bear with us as the upgrade will

Image
06-February-2024

Access Bank Gets $75m Japanese Loan for Climate-Sensitive Projects

By Aduragbemi Omiyale A $75 million loan to be used to finance climate-sensitive and agricultural projects has been secured by Access Bank Plc from the Japan International Cooperation Agency (JICA). The chief executive of Access Bank, Mr Roosevelt Ogbonna, at the signing of the loan agreement on Monday, disclosed that the facility underscores a commitment of Access Bank to support climate change measures in Nigeria. “At Access Bank, we recognise the urgent need for sustainable solutions to combat climate change. This landmark agreement with JICA reaffirms our commitment to leveraging financial resources for impactful initiatives that promote environmental resilience and

Image
02-February-2024

CBN Bans Banks, Fintechs From International Money Transfer Services

By Adedapo Adesanya The Central Bank of Nigeria (CBN) has banned banks and financial technology companies (fintechs) from international money transfer services. This was contained in the revised guidelines for the operations of IMTOs, which were officially released on January 31, 2024. The CBN directed that, “All banks are prohibited from operating International Money Transfer services but can act as agents. “Also, Financial Technology Companies are not allowed to obtain approval for IMTO. “The provisions of BOFIA 2020 on the prohibition of employment of certain persons in banks shall also apply to IMTOS.” By stopping banks and fintechs from international

More Stories
Image
07-December-2023

NIBSS Orders Banks to Remove Paystack, Others from Funds Transfer Channel

By Aduragbemi Omiyale Deposit Money Banks (DMBs) have been directed by the Nigeria Inter-Bank Settlement System (NIBSS) Plc to yank off all financial institutions not licenced to hold customers’ funds from their NIBSS Instant Payment (NIP) outwards platforms. In a circular dated December 5, 2023, the agency said allowing these firms, which obtained licenses to operate as Payment Solution Service Providers (PSSPs), Switching Companies, Super Agents and others from the Central Bank of Nigeria (CBN), to collect funds from customers was in contravention of the law. NIBSS said only commercial banks and others authorised by the central bank to receive

Image
16-June-2021

Soaring Food Prices Pushed 7m Nigerians into Poverty—World Bank

By Adedapo Adesanya The World Bank has revealed that high inflation, driven by soaring food prices, has pushed seven million Nigerians into poverty. In a new report signed by Mr Shubham Chaudhuri, the World Bank Country Director for Nigeria, the Bretton Wood institution commended Nigeria for shielding its economy from the fallout from the coronavirus pandemic but called for urgent measures to break inflation and protect livelihoods. Nigeria, Africa’s largest crude exporter and the most populous economy, slipped into a recession in late 2020, hurt by lower oil prices and the pandemic, but unexpectedly emerged from the slump in February.

Image
16-October-2017

Rivers Books Spot in 2017 Cowbellpedia Finals

By Modupe Gbadeyanka Over the weekend, the 2017 Cowbellpedia Secondary School Mathematics TV Quiz Show sponsored by Cowbell, the flagship brand from Promasidor Nigeria Limited, approached a crucial bend when two students from Graceland International School, Port Harcourt, Rivers State cruised into the final stage. In the junior category, Osasere Egharevba and Jessey Uche-Nwichi pushed off the stiff challenge from Chukelu Egboga of Loyola Jesuit College, Abuja; Ibrahim Jajere of Nigerian Tulip International College, Damaturu, Yobe State; Anita Alabi of Gloryland Secondary School, Igarra, Edo State and Tamunokuro Braide of Graceland International School, Port Harcourt, Rivers State. In the senior

Image
02-November-2020

UAC Nigeria’s Strategy to Invest for Growth Yields Results in Q3

By Dipo Olowookere Though the nine months results of UAC Nigeria Plc were not too impressive, its third-quarter earnings were better and this was because of the decision of the company to invest for growth and free up its burden. In Q3 of 2020, the revenue jerked by 10.5 per cent to N21.2 billion from N19.2 billion in Q3 2019 compared with the meagre 1.7 per cent rise in nine months of 2020 N57.8 billion from N56.8 billion achieved in the same period of last year. The Q3 growth in turnover was as a result of revenue growth across all

Image
04-December-2021

We’re Yet to Receive Formal Report of Sylvester Oromoni’s Death—Police

By Modupe Gbadeyanka The Lagos State Police Command on Saturday night said it was yet to receive a formal report of the death of one Sylvester Oromoni, a 12-year-old student of Dowen College, Lekki, Lagos. The death of Master Oromoni has been trending online for the past few days and the video of his painful death sparked reactions after it was reported that he was bullied in school and allegedly forced to swallow substances believed to have eventually killed. The incident forced the Lagos State government to shut down the school indefinitely for investigation. On Saturday night, the spokesman for

Image
28-April-2023

Why Airtel is Very Deliberate in Promoting Education—Ogunsanya

By Modupe Gbadeyanka The Group CEO of Airtel Africa Plc, Mr Segun Ogunsanya, has explained why the company is very deliberate in promoting education and empowering the people. Speaking during a visit to Kitende Secondary School, Entebbe in Uganda, Mr Ogunsanya said the action of the telco was because “Airtel Africa is cognizant of the great value education contributes to our nations across the continent.” Kitende Secondary School is one of the educational facilities Airtel and UNICEF are working with to provide access to quality education to millions of children in Africa through digital learning. The school has been connected

Image
27-October-2021

Annual Reports: Tough Time Awaits Defaulting MDAs

By Adedapo Adesanya The Financial Reporting Council (FRC) has vowed to clamp down on federal government’s agencies and parastatals that have refused to file their Annual Financial Statement (AFS) as required by the law. The council said it would continue to wield the big stick on such defaulting Ministries, Departments and Agencies (MDAs) as necessary fines would be imposed on them. This was disclosed by the Executive Secretary of FRC, Mr Shuaibu Adamu, at the on-going National Learning and Development Programme on Accounting and Financial Reporting in the Public Sector in Abuja. He, however, expressed delight that about 115 government

Image
30-April-2019

CBN Issues Licences to 5 New Banks to Boost Lending

By Dipo Olowookere Five new banks have been issued operating licences by the Central Bank of Nigeria (CBN) to carry out financial services in the country, Business Day is reporting. Relying on information from those allegedly familiar with the development, the reputable business journal said one of the new banks may commence operations this week. However, it said most of the lenders are planning to kick off banking operations in the country before August 2019. One of the new banks, “Globus” is said to be spearheaded by Elias Igbinakenzua, a former Executive Director at a tier one bank. Business Post

Ad
Ad
Recent Stories
Image
05-March-2024

Nigerian Air Force Airstrikes Hit Two Illegal Refineries in Rivers

By Adedapo Adesanya The Nigerian Air Force component of Operation Delta Safe, through airstrikes destroyed two illegal oil refining sites in Krakama and Temakiri, Degema Local Government Area of Rivers State, in continuation of efforts to stamp out the activities of crude oil thieves and oil pipeline vandals in the country. This was disclosed by the Director of Public Relations and Information, Nigerian Air Force, Mr Edward Gabkwet, an Air Vice Marshal, saying the illegal oil refining sites were observed actively operating with Cotonou boats sighted nearby with the probable intent to illegally siphon crude oil from the sites. Mr

Image
05-March-2024

NGX Remains Catalyst for Economic Growth—Chiemeka

By Aduragbemi Omiyale The acting chief executive of the Nigerian Exchange (NGX) Limited, Mr Jude Chiemeka, has described the bourse as a catalyst for economic growth and development. He said this at the listing of 7.5 billion ordinary shares of Transcorp Power Plc at N240 per unit at the exchange on Monday. The energy firm raised the market capitalisation of the trading platform by N1.8 trillion yesterday. According to him, the inclusion of Transcorp Power into the NGX, the first listing of the year, underscored the pivotal role the bourse plays in shaping Nigeria’s economic landscape. He added that NGX

Image
05-March-2024

Dangote Renames Lagos Refinery Road After Herbert Wigwe

By Modupe Gbadeyanka The road to the Dangote Refinery in the Lekki area of Lagos State has been renamed after the late group chief executive of Access Holdings Plc, Mr Herbert Wigwe. This development was announced on Monday night by the owner of the oil facility, Mr Aliko Dangote, during the Celebrating Herbert Wigwe’s Professional Legacy, who said this gesture was to immortalise his friend. The Nigerian billionaire businessman and the richest black man on earth, in an emotional tribute to the late banker, who died in a helicopter crash in the United States on February 9, 2024, along with

Image
05-March-2024

Investors of Unlisted Securities Lose N43bn

By Adedapo Adesanya It was a bad day for investors of unlisted securities in Nigeria as the NASD Over-the-Counter (OTC) Securities Exchange ended the first trading session of the week on a negative note with a 3.11 per cent loss triggered by four stocks on the platform. The culprits were UBN Property Plc, Aradel Holdings Plc, Central Securities Clearing System Plc, and Resourcery Plc. They were under selling pressure during the trading session. This resultantly trimmed N43 billion from the market capitalisation of the bourse to N1.449 trillion from N1.542 trillion, as the NASD Unlisted Security Index (NSI) dropped 35.53

Image
05-March-2024

Naira Value Improves at Official Market, Deflates at Parallel Market

By Adedapo Adesanya The Naira appreciated further against the greenback in the Nigerian Autonomous Foreign Exchange Market (NAFEM) segment of the FX market on Monday, March 5 by N14.06 or 0.9 per cent to trade at N1,534.19/$1 compared with last Friday’s value of N1,548.25/$1. The improvement in the value of the domestic currency happened as the forex market attempts to find stability after months of turbulence due to a shortfall in the supply of Dollars into the system. Yesterday, the value of forex trades depreciated by 39.7 per cent or $117.37 million to $178.63 million from the $296.00 million recorded

Image
05-March-2024

Oil Market Falls Despite OPEC+ Cut Extension

By Adedapo Adesanya  The oil market fell slightly on Monday, as demand headwinds outweighed a widely expected extension of voluntary output cuts through the middle of the year by the Organization of the Petroleum Exporting Countries and its allies (OPEC+). Brent futures dropped 81 cents to quote at $82.74 a barrel while the US West Texas Intermediate (WTI) weakened by $1.22 to trade at $78.75 a barrel. The OPEC+ producers agreed over the weekend to extend their voluntary oil output cuts of 2.2 million barrels per day into the second quarter to cushion the market amid global economic concerns and

Image
05-March-2024

Investors Mop up Nigerian Stocks on Economic Optimism

By Dipo Olowookere The Nigerian Exchange (NGX) Limited witnessed a 0.10 per cent growth on Monday amid optimism that the trip of President Bola Tinubu to Qatar over the weekend will yield positive results. At the Nigeria-Qatar Business and Investment Forum in Doha, Mr Tinubu assured Qatari investors that they would not face any bottleneck while attempting to repatriate their funds. This assurance was welcomed by stock investors, who saw light at the end of the tunnel for the nation’s economy, which is currently suffering because of the shortage in the supply of foreign exchange (FX) into the market. Since

Image
04-March-2024

UK Announces £37.3m to Boost Livelihoods in Nigeria, Others

By Adedapo Adesanya The United Kingdom has announced new funding for the Mobile for Development Programme to help more people access mobile and digital technologies to find new opportunities and boost their livelihoods in Nigeria and other developing countries. UK’s Minister for Development and Africa, Mr Andrew Mitchell MP, during a speech at Mobile World Congress last week, announced that the UK is providing £37.3 million of new support for the Mobile for Development Programme. The new UK funding for innovative mobile phone technology will help change lives in developing countries around the world by harnessing AI technology to provide

Image
04-March-2024

Newly-Listed Transcorp Power Targets N500bn Revenue by 2031

By Adedapo Adesanya The latest company to join the Nigerian Exchange (NGX) Limited, Transcorp Power Plc, has announced a revenue target of N500 billion by 2031, tapping opportunities in the capital market and sustainable energy. This was disclosed by the Managing Director of the firm, Mr Peter Ikenga, during the Facts Behind the Listing held at bourse on Monday. The firm, owned by businessman and Chairman of UBA Plc, Mr Tony Elumelu, listed its stocks on the Main Board of the nation’s flagship exchange by introduction. It listed 7,500,000,000 ordinary shares of 50 Kobo each at N240.00 per share. Speaking

Image
04-March-2024

DisCos Must Promptly Respond to Customers’ Complaints—FCCPC

By Aduragbemi Omiyale Electricity distribution companies (DisCos) in the country have been charged to respond to customers’ complaints quickly for better service delivery. This task was given to the energy firms by the Federal Competition and Consumer Protection Commission (FCCPC), which said the companies must design a quick response mechanism to address issues from their customers. Speaking last Saturday at a four-day one-stop-shop for addressing billing, metering, transformer, connection, disconnection, customer service and other electricity consumer issues in Ikeja Electric coverage areas, the acting executive chairman of FCCPC, Mr Adamu Abdullahi, said the highest number of complaints received by the