Nigeria Caps Cash Withdrawals, Encourages Use of eNaira and Other Alternatives

1: nigeria has implemented limits on cash withdrawals in an effort to encourage customers to use alternative payment methods, including the central bank digital currency (cbdc) called the enaira. over-the-counter withdrawals are limited to ₦100,000 ($225) per week for individuals and ₦500,000 ($1,123) for businesses, while atm withdrawals are capped at ₦20,000 ($45) per day.
paragraph 2: the move is in line with the central bank of nigeria’s (cbn) cashless policy, and the enaira was launched in october last year. the cbn also opened up a discount scheme for motorized rickshaw taxis to users, including those without bank accounts, in august. the enaira was africa’s first sovereign digital currency and marked its first anniversary in october this year.
paragraph 3: estimates for the percentage of nigerians holding or trading cryptocurrencies range from 27% to more than 50%, yet less than 0.5% of the population is thought to be using the enaira. the cbn has offered incentives to kickstart the cbdc’s popularity, and the launch of the enaira put nigeria in the global spotlight. despite this, nigeria still has a ban on cryptocurrency.

By Evey Lovelace

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