Nigeria Pushes CBDC by Limiting Cash Withdrawals

ABUJA, NIGERIA – The Central Bank of Nigeria (CBN) has limited cash withdrawals to just $45 per day in an effort to push consumers to use the country’s Central Bank Digital Currency (CBDC), the eNaira. The new cash regulations will take effect on January 9, 2023.

The central bank published a letter Tuesday that detailed the new regulations. Individuals will be limited to $225 per week in over-the-counter transactions and $45 per day at ATMs. Businesses will be limited to $1,123 per week. Consumers may take out larger cash withdrawals but with a 5-10% processing fee.

The move is meant to incentivize people to use Nigeria’s CBDC, the eNaira. The CBN’s director of Banking Supervision, Haruna Mustafa, wrote in the published letter that, “customers should be encouraged to use alternative channels (internet banking, mobile banking apps, USSD cards/POS, eNaira, etc.) to conduct their banking transactions.” 

Nigeria has already outlawed cryptocurrency transitions. In February 2021, the CBN published a whitepaper stating they had “completely banned [cryptocurrency transactions] and all exchanges.”