CBN Withdrawal Limit Policy: Fascinating Tales by Japa Enthusiasts

The Central Bank Of Nigeria’s withdrawal limit policy has the nation buzzing at the moment. When you travel the world, something that you will definitely come in contact with is money from different countries and also experience how policies about money affect these nations. A few days back the Central Bank Of Nigeria came out with a new withdrawal limit policy, reducing the weekly withdrawal limit to 100 thousand naira (100,00) a week, 20 thousand naira (20,000) daily for individuals and five hundred thousand naira daily (500,000) for companies.

Social media is all agog about the news with a lot of Nigerians complaining about the withdrawal limit policy and how the people it affects are the masses and how they are also the ones who will bear the brunt of the policy.

5% for cash withdrawals over 100k for individuals, 10% for corporate??? CBN this is INSANE!!!! ARRRGGGHHH

— Moji Sensei Delano (@MojiDelanoBlog) December 6, 2022

CBN limits cash withdrawals to ₦100,000 a week. This is good – If you want to buy votes or pay for ransom or a corrupt policeman, or get involved in a scam – you will have to do a transfer and that means digital blueprints that can be traced.

— Mr. Czar (@Mrczarr) December 6, 2022

CBN employees must be working around the clock. Anytime I see a new policy all I see is additional work.

— Olúwatósìn Olaseinde (@tosinolaseinde) December 6, 2022

The new CBN policy is only pushing for a cashless economy making huge financial transactions more traceable than ever before; it does not necessarily increases the value of naira.
Not having cash to pay for Garri will not reduce the price, the seller will ask for other means

— ☆Abolade (@alabi_yelloww) December 8, 2022

The CBN must really think that 20k-50k is a lot of money in this Buhari economy.

— Malachy Odo II (@MalachyOdo1) December 7, 2022

The new CBN policy , will create a black market for naira notes to be sold ……its a doubled -edged sword policy. Uncertain times ahead. https://t.co/7Dmxl5MHKF

— MPA👑 (@favogbuji) December 8, 2022

The plan from CBN for a “cashless society” Nigeria sounds sweet, until you go and buy something & the POS declines your ATM card.

Or you make a mobile transfer & the person you paid doesn’t see alert for hours.

These things need to be fixed before we push for a cashless society

— Chuma Nnoli (@ChumaNnoli) December 7, 2022

With the way Nigeria bank services are misbehaving coupled with our literacy level, I doubt CBN cashless policy is gonna work.

— Olaniyi Oluseyi Gideon (@realoluseyi) December 7, 2022

There is word that the Nigerian House Of Representatives has asked that a halt be put to this withdrawal limit policy which is supposed to take effect by January of next year but the governor of the Central Bank Of Nigeria after a meeting with the President of Nigeria says that the president agrees with the new withdrawal limit policy and that it will be moving forward.

Speaking further on it, he says; “We cannot continue to allow a situation where over 85 per cent of the cash that is in circulation is outside the bank. More and more countries that are embracing digitisation have gone cashless”

A lot of Nigerians who have travelled out of the country and even citizens in the country have a lot to say. One man in particular who visited Lebanon where a withdrawal limit policy like this has been put in place shared his experience on Twitter;

The tour guide who drove me around Lebanon has been a police officer for 15yrs. He said he woke up one day & the Govt reduced their salary from $1k+ to a $100/month due to bankruptcy caused by corruption/mismanagement of their nation’s wealth. The central bank was instructed…🧵

— Samuel Otigba (@SamuelOtigba) December 6, 2022

By the Govt to allow a maximum withdrawal of $200-$300/week. He said it got to the point people were staging robberies just to steal their own money from the bank. Public servants decided to protest against the Govt. For example, the police work once a week as a form of protest.

— Samuel Otigba (@SamuelOtigba) December 6, 2022

That was when he decided to be a tour guide, earning a living every other day of the week while working as a police officer only during the weekend. The people knew who the problem was, so rather than fight against themselves, they focused on the Govt, while self regulating.

— Samuel Otigba (@SamuelOtigba) December 6, 2022

The painful part for him was having to start life all over again cause the value of his life savings, pension & that of his family reduced drastically. Instead of retiring, he is back on the streets hustling all over again in order to cater & secure a future for his children.

— Samuel Otigba (@SamuelOtigba) December 6, 2022

Businesses, dreams, ambitions are halted & can’t even function properly because the money they worked for and trusted their banks with, is withheld by the Govt through the central bank in the name of securing the economy from further bankruptcy because of their greed/corruption.

— Samuel Otigba (@SamuelOtigba) December 6, 2022

A similar policy was placed in Lebanon before their currency became worthless. This should be a red flag. https://t.co/4mA8VBwaA2

— Jay Jay PA₦YA (@ComputerrWizard) December 6, 2022

Nigerians are divided over this new withdrawal limit policy. Some people think it is not a sound one because we still suffer through online banking that can not be counted on and some think it is good because it will help the economy and the naira standing.

What do you think? In your travels, have you seen policies like this and how they affected those countries?