Editorial
CBN’s New Cash Withdrawal Limits
In an obvious move to reposition Nigeria’s national currency, the Naira, for effective performance and control of the amount of cash in circulation, the Central Bank of Nigeria (CBN) has introduced new cash withdrawal limits for banks and other financial institutions. The new policy comes on the heels of its recent currency redesign project, in which it expresses concerns about immense amounts of cash outside the banking system.
The directive on the new cash withdrawal limits was contained in the CBN letter dated December 6, 2022, which was addressed to all Deposit Money Banks, and other financial institutions like Payment Service Banks (PSBs), Primary Mortgage Banks (PMBs) and Microfinance Banks (MFBs). The letter was formally endorsed by Mr Haruna Mustafa, Director, Banking Supervision Department, CBN.
Under the new regulations, the Central Bank capped weekly over-the-counter (OTC) cash withdrawals by individuals and business organisations to N100,000 and N500,000, respectively. However, the apex bank states that withdrawals above the threshold will be charged a processing fee of 5% for individuals and 10% for corporate bodies. Also, third-party checks over N50,000 are not eligible for OTC payments, while the existing limit for cleared checks remains at N10 million.
The new cash withdrawal regime further limits maximum cash withdrawals via Automated Teller Machines (ATMs) to N100,000 per week and N20,000 per day. According to the CBN, ATMs can only load denominations of N200 and below, while the maximum amount that can be withdrawn via point-of-sale (POS) terminals is limited to N20,000 per day.
However, the Central Bank declares that in cases of last resort, not more than once a month, if cash withdrawals exceeding the prescribed limit are required for legitimate purposes, the withdrawal amount of individuals and corporate organisations shall not exceed N5 million and N10 million respectively, and shall comply with the referenced processing fee. This would be in addition to enhanced due diligence and further information requirements.
Furthermore, the CBN says that monthly re-runs of cash withdrawal transactions exceeding the prescribed limit should be referred to the banking supervisory authority. While needing to comply with existing Anti-Money Laundering/Combating the Financing of Terrorism regulations related to Know Your Customer (KYC), ongoing customer due diligence and suspicious transaction reporting, among others, are required in all circumstances.
Moreover, the Central Bank encourages bank customers to use alternative channels including Internet Banking, Mobile Banking Apps, USSD, Card/POS, eNaira, etc., for banking transactions. The CBN also warned banks and other financial institutions that aiding and abetting circumvention of the new policy would attract severe sanctions.
Current moves by the CBN point to an effort to curb vote-buying ahead of the 2023 general elections, check and diminish the amount of cash in circulation. It is also aimed at containing the ease by which the Nigerian currency has been counterfeited by criminal gangs. Most significantly, these policies would help the apex bank regain control of excess cash floating in the economy, thereby upscaling the value of the Naira and curbing inflation.
The CBN governor, Godwin Emefiele, had revealed in last October that out of N3.23 trillion Naira in circulation, N2.73 trillion was lying outside Nigeria’s banking system. This figure, which represents about 85%, is what the CBN is trying to mop up back into the system to be able to control the money supply. We commend the bank for the initiative, which is quite positive. Many Nigerians will benefit from the new policy.
The government and banks would equally gain from the practice in the sense that it would reduce the cost of holding large amounts of cash, and capture more e-transactions and e-revenue for the institutions. Crimes like armed robbery, burglary, and kidnapping for ransom will drop because it will be difficult to raise the huge amount of money the criminals usually demand from the banking system.
Drastically reducing cash in circulation will likewise compel more transactions to be conducted electronically. There would be less currency outside the banking system, which will make monetary policy interventions more effective. This would reduce the size of the black economy and provide more intelligence for the tax authorities to expand the tax net to economic activities which were previously under the radar. Additionally, the volume of Naira to be printed every year will reduce significantly.
Apparently, the CBN is trying to drive a cashless economy by placing stiffer restrictions on cash withdrawals. However, a more effective strategy could have been to first enhance the cashless economy infrastructure to remove or significantly reduce the challenges and irritations that people experience when transacting using electronic payments. Many Nigerians regularly experience unsuccessful electronic payment transactions either due to bad network, switch failure or even lack of electricity to charge the devices.
A different strategy could have been employed to make a cashless economy attractive as was the case with Mesa in East Africa, so people voluntarily embrace it rather than the stick approach, which will, unfortunately, punish many people for circumstances that are beyond their control, especially the large unbanked population in rural areas. If not properly handled, the situation could result in a lull in economic activities, which may slow down GDP growth in the short to medium term.
Though there will undoubtedly be implementation challenges, the policy is a step in the right direction for sanitising the economy. The excess liquidity floating around in the economy needs to be mopped to minimise price escalation. However, the slow adoption of e-banking, the rise in cybercrime coupled with an election year, and other macroeconomic factors could dramatically slow the benefits of the policy.
Editorial
NCC, Save Nigerians From Exploitation
Editorial
WPFD: Nigeria’s Defining Test
Nigeria stands at a critical juncture as the world marked World Press Freedom Day (WPFD) on May 3. This annual observance is a reminder that a free press is central to democratic life, good governance, and public accountability. For Nigeria, it is also a moment for sober reflection on how far the country has come and how far it still has to go in safeguarding the independence of its media.
World Press Freedom Day exists to highlight the fundamental importance of freedom of expression and to honour journalists who risk their lives in pursuit of truth. It underscores the idea that without a free press, societies cannot function transparently, nor can citizens make informed decisions. In countries like Nigeria, where democracy continues to evolve, the observance carries particular urgency.
This year’s theme, “Shaping a Future at Peace: Promoting Press Freedom for Human Rights, Development and Security”, places journalism at the heart of global stability. It emphasises that a peaceful society cannot be built on silence, fear, or manipulated information. Rather, it depends on the free flow of accurate, timely, and independent reporting.
At its core, the theme highlights the role of journalism in fostering accountability, dialogue, and trust. These are not abstract ideals. In Nigeria, where public confidence in institutions is often fragile, the media remains one of the few platforms through which citizens can question authority and demand transparency. When press freedom declines, so too does public trust.
Journalism serves as a foundation for peace, security, and economic recovery. Countries with robust media systems tend to attract greater investment, maintain stronger institutions, and resolve conflicts more effectively. Nigeria’s economic challenges, ranging from inflation to unemployment, require open scrutiny and informed debate, both of which depend on a free press.
However, the issue of information integrity has become increasingly complex in the digital age. Artificial Intelligence (AI) and online platforms have amplified the spread of misinformation and disinformation. In Nigeria, where internet penetration has grown rapidly, false narratives can travel faster than verified facts. This makes the role of credible journalism more vital than ever.
The challenge is not only technological but also ethical. AI-driven manipulation of information threatens to distort public discourse, influence elections, and deepen social divisions. In such an environment, professional journalism must act as a stabilising force, ensuring that truth prevails over sensationalism and propaganda.
Equally troubling is the safety of journalists. Across Nigeria, reporters face growing levels of online harassment, judicial intimidation, and physical threats. Self-censorship is becoming more common, as media practitioners weigh the risks of reporting sensitive issues. This trend undermines the very essence of journalism.
A particularly alarming incident involved a serving minister in the present administration, who openly threatened to shoot a journalist during a televised exchange. Such conduct, broadcast to the public, sends a dangerous signal that hostility towards the press is acceptable. It erodes the norms of democratic engagement and places journalists in harm’s way.
This year’s theme aligns closely with the United Nations Sustainable Development Goal (SDG)16, which promotes peace, justice, and strong institutions. Freedom of expression is a cornerstone of this goal. Without it, institutions weaken, corruption thrives, and justice becomes elusive. Nigeria’s commitment to SDG 16 must therefore include genuine protection for the media.
Historically, the Nigerian press has been a formidable force. From resisting colonial rule to challenging military dictatorships, our journalists have played a central role in shaping the nation’s political landscape. Today, however, that legacy appears to be under strain, as the media operates under what can best be described as a veneer of freedom.
Beneath this facade lies a troubling reality. Journalists are routinely harassed, detained, and prosecuted for performing their constitutional duties. Reports from media watchdogs indicate that dozens of Nigerian journalists face legal threats or arrest each year, often for exposing corruption or criticising those in power.
The Cybercrimes (Prohibition, Prevention, etc.) Act of 2015 has become a focal point of concern. Originally intended to combat cyber threats, it has increasingly been used to silence dissent. Sections 24 and 27(1)(b), in particular, have been invoked to target journalists, bloggers, and social commentators.
Although amendments introduced in February 2024 were meant to safeguard journalists, concerns persist. The law continues to be wielded in ways that stifle investigative reporting and restrict freedom of expression. Legal reforms must go beyond cosmetic changes to address the root causes of misuse.
To safeguard the future of journalism in Nigeria, decisive action is required. The Cybercrimes Act must be revisited to ensure it cannot be weaponised against the press. Law enforcement agencies must operate free from political influence, upholding the rule of law and protecting journalists’ rights. Civil society and international partners must also strengthen independent media through funding, training, and platforms for wider reach.
In this rapidly evolving world shaped by artificial intelligence and digital innovation, Nigeria faces a clear choice. It can either allow press freedom to erode under pressure, or it can champion a truly independent media landscape. The path it chooses will determine not only the future of journalism, but also the strength of its democracy and the peace it seeks to build.
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