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The Central Bank of Nigeria (CBN) has raised the maximum weekly limit for cash withdrawals following a public backlash.

The new measure, coming after the bank announced the replacement of higher naira notes, will go into effect beginning Jan. 9, 2023.

The revised withdrawal limits were announced in a circular released Wednesday.

According to the Central Bank of Nigeria, the weekly cash withdrawal limits set for individuals have been raised from N100,000 to N500,000. For corporate organizations, the new limit is set at N5 million.

Withdrawals that exceed the set limits must be approved by the Managing Director of the bank in writing.

CBN explained that the decision was based on feedback that the CBN received from stakeholders after issuing the Dec. 6 circular that limited cash withdrawals to N100,000 for individuals and N500,000 for companies.

However, the CBN retained the caveat for legitimate cash withdrawals above the limits as such requests shall be subject to a processing fee of 3% and 5% for individuals and corporate organizations respectively, but through a portal with the customer's details, including valid ID card, tax ID and BVN.

The Central Bank of Nigeria said that cheques above N1 million will no longer be eligible for over-the-counter withdrawal. It noted that any bank found to be collaborating with its customers to bypass the policy would face severe consequences.

"The Central Bank of Nigeria (CBN) recognizes the vital role that cash plays in supporting underserved and rural communities and will ensure an inclusive approach as it implements the transition to a more cashless society," said Haruna Mustapha, the CBN director of supervision, as per Khaleej Times.

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Additionally, the Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, said yesterday that the Nigerian payment system made significant progress since the introduction of the cashless policy in 2012, Vanguard reported.

Emefiele said this while addressing the House of Representatives on CBN's implementation of the cashless policy and new withdrawal limits.

He further added that, as a result of the successes achieved in the payment system, Nigeria had been named Africa's leading real-time and digital payments country, with over 3.7 billion real-time transactions taking place in 2021.