In an effort to reduce the use of cash, Nigeria’s central bank significantly raised the weekly withdrawal caps it had set.
The weekly withdrawal limit for individuals has increased from 100,000 to 500,000 naira ($1,120), up from 100,000 on December 6. The weekly withdrawal limit for corporations will increase from 500,000 to 5 million naira.
Many Nigerians use unofficial markets where cash is preferred and have no bank accounts; some have claimed that the withdrawal restrictions may harm some residents and businesses. The central bank also began issuing newly designed 200, 500, and 1,000 naira notes last week as part of a strategy to reduce double-digit inflation and transition to a cashless society.
In compelling circumstances when individuals or businesses need to make withdrawals above the limits, the requests will incur a processing fee of 3% and 5%, respectively.