The saying “cash is king” may soon be a thing of the past in Nigeria as CBN has set a maximum limit for cash withdrawals.
In a circular addressed to all banking institutions, the Central Bank of Nigeria (CBN) set a maximum limit for over-the-counter withdrawals to N100,000 a week for individuals and N500,000 a week for corporate organisations, with a 5% and 10% processing fee respectively, for withdrawals above these figures. For ATM and POS withdrawals, the limit was set to N20,000 per day with a cumulative of N100,000 weekly. The policy is expected to take effect on January 9th 2023. This new directive is part of Nigeria’s Cashless Policy drive established ten years ago.
Why experts say this policy is to reduce the velocity of Naira in circulation and continue to digitalize the economy, many Nigerians wonder the implication it will have on them and if there are systems in place to make this transition smooth.
Since this initiative will take effect in the new year, it means you have some time to make accommodations. How do you do that?
- Register your business name – to ensure you do not lose income due to this change, we advise that you register your business name. So even if your business is a small business or you’re a freelancer, you can register your business name and get a business bank account so that you can be recognized as a business and not an individual, thereby increasing the maximum amount you can withdraw.
- Take your transactions digital – over 90% of Nigerians use digital channels for transactions. It’s time to join them. Make use of transfer channels to move money. Send and receive money, make inventory purchases and pay bills online. This will also make tracking your finances easier.
- Request a POS – with the change, many buyers will have less cash to spare. So, as a business owner, it is important to provide your offline customers with more payment options. With an efficient point-of-sale system you can accept card payments anywhere and any time.
We hope these tips help you reduce your dependency on cash and adapt to the new policy without any challenges.
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