The Central Bank of Nigeria limits withdrawals of money in a push for a cashless economy

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Nigeria restricts ATM withdrawals to $45 per day in push to digital currency. The policy which will also apply to banks and cashback from purchases. The Central Bank of Nigeria limited weekly over-the-counter cash withdrawals to 100,000 naira ($225) for individuals and 500,000 naira ($1,124) for corporations. Analysts worry that with digital payments often unreliable in Nigeria, the initiative could hurt daily transactions that people and businesses make. Only 45% of adults in Nigeria have accounts with regulated financial institutions, according to the World Bank. “(The new policy) is not going to drive people to start to try doing electronic transactions. On the contrary, it is going to move people away from the financial institutions,” Tunde Ajileye, a partner at Lagos–based SBM Intelligence firm appreciated.

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“Between 2012 and 2022, almost about 10 years, we believe that a lot of electronic channels have been put in place that will aid people in conducting banking and financial service transactions in Nigeria.(…) And we think Nigeria as the biggest economy in Africa needs to leapfrog into the cashless economy,” the Governor of the Central Bank of Nigeria, Godwin Emefiele, on Thursday, said. The House of Representatives summoned Emefiele to come and explain the policy to the parliament. Most of the lawmakers condemned the policy.