Market Analysis Report (07 Dec 2022)

Nigeria has drastically reduced the amount of cash that can be withdrawn at ATMs in a bid to push its “cashless Nigeria” policy and increase the use of the eNaira, the country’s Central Bank Digital Currency (CBDC).

In a newly issued directive to financial businesses, the Central Bank of Nigeria has noted that a withdrawal limit of ₦20,000 (around $45) per day is being imposed. The maximum that can be withdrawn per week is ₦100,000, or $225.

At banks, individuals will be limited to withdrawing the same amount per week, while businesses will be limited to ₦500,000, or $1,125. Above those limits, individuals will be hit with a 5% fee, while businesses will get a 10% fee.

Announcing the move, the Director of Banking Supervision Haruna Mustafa said:

“Customers should be encouraged to use alternative channels (Internet banking, mobile banking apps, USSD, cards/POS, eNaira, etc.) to conduct their banking transactions.”

The eNaira’s adoption rate has been low ever since the cryptocurrency launched in October 2021, with around 0.5% of Nigeria’s population reported to have used the CBDC so far.