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Nigeria Is Trying an Interesting Method to Increase the Use of CBDC!


Nigeria is trying an interesting method to increase the use of CBDC! To promote the use of CBDC, Nigeria has imposed a limit of $225 per week on the amount that can be withdrawn from ATMs.

To promote the use of CBDC, Nigeria has imposed a limit of $225 per week on the amount that can be withdrawn from ATMs.

As part of its efforts to promote its “Cashless Nigeria” policy and promote the wider use of eNaira, the digital currency of the Central Bank of Nigeria, Nigeria has drastically reduced the cash balance of individuals and companies. leaving at ATMs (CBDCs).

In a circular (1) dated December 6, the Central Bank of Nigeria returned the service to financial institutions, stating that individuals and institutions are currently withdrawing $45 (Naira 20,000) per day and $225 (100 000 naira) per week at ATM offices.

The ban began on December 6. Additionally, the weekly bank withdrawal amount will be $225 (100,000 Naira) for individuals and $1,125 (500,000 Naira) for businesses. Individuals will be charged 5% and financial institutions 10% for amounts above these limits. A limit of $45 (or 20,000 Naira) is also placed on the amount that can be withdrawn from ATM POS. The bank’s chief executive officer, Haruna Mustafa, had the following to say when announcing the changes:

“Customers should be encouraged to use alternative channels (internet banking, mobile banking apps, USSD, card/POS, eNaira, etc.) to complete their banking transactions.”

Since this limit applies to the total amount of each refund, someone who withdraws $45 from an ATM and tries to withdraw money from the bank on the same day will receive a $5 fee. Before the announcement, the limit on the amount that can be withdrawn per day was $338 (or 150,000 yen) for individuals and $1,128 (or 500,000 yen) for businesses.

There are not many CDBCs in Nigeria

Since its introduction on October 25, 2021, adoption of eNaira digital currency has been slow. The Central Bank of Nigeria does not allow residents to use CBDC. As of October 25, a year after the launch of eNaira, less than 0.5% of the public admitted to having used the digital currency. In 2012, Nigeria implemented a policy (2) known as “cashless”, which proposed that the country abandon the use of cash, as it would improve its payment system, reduce costs bank and make Nigerians have money. efficiency measures.

Godwin Emefiele, the Governor of the Central Bank of Nigeria, said (3) on October 26 that 85% of all naira in circulation is outside the banks. As a result, the bank announced that it will reissue new banknotes to support the transition to digital payments.

According to the CBDC tracker by an American think tank called the Atlantic Council, Nigeria is among the 11 countries that have fully implemented CBDC. Additionally, 15 more countries have launched pilot programs, and India is expected to join these countries later this month.

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