Financial Technology Africa FinTech Nigeria Limits ATM Withdrawals to Boost Digital Payments

Nigeria Limits ATM Withdrawals to Boost Digital Payments

The Central Bank of Nigeria has capped daily ATM withdrawals at $45 in order to encourage electronic payments, including the eNaira digital currency.
The central bank has sent out a circular to lenders cutting the daily cash machine withdrawal limit from 150,000 Naira to 20,000 Naira, according to Bloomberg. Weekly cash withdrawal limits of 100,000 Naira for people and 500,000 Naira for corporations have also been set.

The limit is the latest effort by Nigeria to discourage cash usage. The country is set to redesign high-value notes and is giving people until January to switch out their old paper money.

The central bank is also planning to mint more of its eNaira digital currency, which launched last year but has yet to take off, according to Bloomberg.

Says the central bank: “Customers should be encouraged to use alternative channels—Internet banking, mobile banking apps, USSD, cards, POS, eNaira to conduct their banking transactions.”

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