To push the adoption of a national digital currency & online payment systems, Nigeria imposed restrictions on ATM cash withdrawals.
Nigeria is among the low-developed countries but its Inclination toward blockchain technology is appreciable. On 25 October 2021, The central bank of Nigeria launched its official digital currency e-Naira, or say Digital form of sovereign fiat currency. The development & launch of the e-Naira was full of controversy because the majority of the Nigeria-based Fintech companies claimed that the government chose local Fintech companies for the development of National digital currency instead to focus on better companies.
On 6 December, The Central Bank of Nigeria issued a new circular to inform that no one business or individual can withdraw money above the limit of $45 (₦20,000) per day and $225 (₦100,000) per week from ATMs.
This limitation also will apply to Individuals and businesses in the direct Bank services. In the direct-to-bank services, individuals & businesses will be limited to withdrawing $225 (₦100,000) and $1,125 (₦500,000) respectively at banks per week.
Haruna Mustafa, Director of Banking Supervision, said:
“Customers should be encouraged to use alternative channels (Internet banking, mobile banking apps, USSD, cards/POS, air, etc.) to conduct their banking transactions.”
This is showing that the Nigerian central is fully forcing the citizens to go with digital payment systems, including CBDC or e-Naira.
It is worth noting that the adoption rate of the e-Naira so far is very low in the country. Only 0.5% of the population of this country is using e-Naira for payment purposes.
Since 2012, Nigeria has been trying to move toward digital money adoption instead of using physical cash, so that people can use fast payment services at low cost & also to make the monetary system better.
The corruption rate in Nigeria is also high, so it will also help the country to fight against illegal fund transactions.