Tag: CBN

The Central Bank Of Nigeria has imposed fresh cash withdrawal limits on individuals and organisations, which takes effect from January 9, 2023.

According to a new memo to banks issued on Tuesday and signed by the Director of Banking Supervision, Haruna .B. Mustafa, individuals will only be able to withdraw N100,000 per week ( from over the counter, Point of Sale Machines or the Automated Teller Machines), while organisations can access N500,000 per week.

Banks have also been directed to load only N200 and lower denominations into their ATM.

The  CBN said in compelling circumstances, not exceeding once a month, where cash withdrawals above the prescribed limits would be required for legitimate purposes, such cash withdrawals shall not exceed N5,000,000.00 and N10,000,000.00 for individuals and corporate organisations, respectively, and shall be subject to the referenced processing fees in addition to enhanced due diligence and further information requirements.

The Central Bank of Nigeria (CBN) has insisted that it followed the law and due process in the ongoing Naira notes redesigning exercise, which it said was 12 years due.

Its position was contained in a note sent to the media in the early hours of this morning in an apparent response to claims by the Minister of Finance, Budget and National Planning, Zainab Ahmad, that her ministry was not carried along by the CBN in the exercise.

The bank’s spokesman, Mr Osita Nwanisobi, expressed surprise at the minister’s claim, stressing that the CBN remains a very thorough institution that follows due process in its policy actions.

He however urged Nigerians to support the currency redesign project, saying it was in the overall interest of Nigerians, reiterating that some persons were hoarding significant sums of banknotes outside the vaults of commercial banks.

This trend, he said, should not be encouraged by anyone who means well for the country.

Officials of the Department of State Services, in conjunction with the Central Bank of Nigeria, and the Nigerian Security and Civil Défense Corps, have arrested 14 persons including a lady over the alleged illegal sale of new naira notes in Kano.

 The State Commandant of the NSCDC, Adamu Zakari, disclosed this while parading the suspects at the NSCDC State Headquarters in Kano, Tuesday evening.

He said the suspects were apprehended during a joint operation in the metropolis as part of efforts to check the illegal act which contravened the CBN Act.

Amid a rising liquidity crunch, banks operating in Nigeria borrowed a whopping sum of N4.5tn from the Central Bank of Nigeria in July, an increase of 27 per cent Month-on-Month from N3.6tn borrowed in June 2022.

Banks use Standing Lending Facility and Repo lending to access short-term lending from the apex bank.

While the CBN lends money to banks through the SLF at an interest rate of 100 basis points above the Monetary Policy Rate currently at 14 per cent, it also lends money to banks through Repurchase Arrangement (Repo).

Repos are usually considered less risky due to their short-term maturity status and the backing of the government.

Banks borrowed N595.34bn from the Central Bank of Nigeria between January and February, data have shown.

The CBN’s monthly economic report showed that while N333.59bn was borrowed through the Standing Lending Facility in January, the amount reduced to N255.75bn in February.

The CBN said increased liquidity in the banking system caused a reduction in the amount borrowed by the lending institutions.