You may remember that the Central Bank of Nigeria (CBN) put limits on how much cash people and businesses could take out of ATMs each week in order to encourage digital payments.
A circular from the bank says that the most cash a person can take out each week is N100,000 and that the most a business can take out is N500,000.
But people who want to take more than that must be ready to pay a processing fee of 5% for individuals and 10% for businesses.
The apex bank also set a daily limit of N20,000 for how much you can take out of a point-of-sale (PoS) machine.
The new rule will go into effect on January 9, 2023.
Spur Brand Nigeria knows that its goal is to reduce the amount of cash used in the economy while increasing the number of transactions that are done electronically.
Nigerians, both people who use banks and people who work at point-of-sale machines, think this is almost the end of the road for them.
The CBN says it came up with this policy to get more Nigerians to use digital financial transactions, which, despite efforts to get them to, it thinks they are not doing.
Even though this makes it harder for Nigerians to get cash, they can still get more than the CBN cash limits, but they must meet some of the requirements below.
A customer must show a valid form of ID like a national ID, international passport, driver’s license, or permanent voter’s card in order to take more than N100,000 or N500,000 (PVC).
The customer would also have to give his or her Bank Verification Number (BVN) and a notarized statement about why the cash withdrawal is being made.
Lastly, the customer would have to show written approval from the company’s Managing Director for corporate drawee.
When all of these things are given, the bank will process them and ask the chief executive for permission to give the customer the money.
