The Central Bank of Nigeria (CBN) announced a new policy on Tuesday, December 6, 2022, which takes effect nationally on January 9, 2023. This reform requires deposit-taking banks and other financial institutions to ensure that cash withdrawals at the counter by individuals and businesses do not exceed N100,000 and N500,000, respectively, per week.

In a move towards deepening electronic banking services, the CBN reduced cash withdrawals at the counter to N20,000 per withdrawal. In a circular note published by the CBN, revised cash withdrawal limits that exceed the stated limits will result in processing fees of 5% and 10% respectively.

The new policy came just weeks after President Muhammadu Buhari launched the new N200, N500, and N1000 banknotes. For its part, the CBN has announced that it wants to promote financial inclusion through electronic banking services.