Nigeria Exempts Small Lenders from Limits on Cash Withdrawals
Nigeria has taken a step to ease the burden on small lenders by exempting them from limits on cash withdrawals. The Central Bank of Nigeria (CBN) announced on July 31st that it would exempt small lenders from the limits on cash withdrawals, which had been in place since the start of the year.
Background of the Cash Withdrawal Limits
The CBN had imposed limits on cash withdrawals in January in an effort to reduce the amount of money circulating in the economy. The limits were set at N500,000 ($1,400) per day for individuals and N3 million ($8,400) per day for businesses. The limits were intended to reduce the amount of money circulating in the economy and to reduce the risk of money laundering.
Exemptions for Small Lenders
The CBN has now announced that small lenders will be exempt from the limits on cash withdrawals. The exemption applies to lenders with assets of less than N10 billion ($28 million). The CBN said that the exemption was intended to reduce the burden on small lenders and to encourage them to continue to provide financial services to their customers.
Impact of the Exemption
The exemption is expected to have a positive impact on small lenders. It will allow them to provide more services to their customers, as they will no longer be limited by the cash withdrawal limits. This could lead to an increase in the number of customers that small lenders are able to serve.
Reaction to the Exemption
The exemption has been welcomed by small lenders. Many small lenders had been struggling to meet the cash withdrawal limits, and the exemption will provide them with much-needed relief. The exemption has also been welcomed by customers of small lenders, who will now be able to access more services from their lenders.
The Future of Cash Withdrawal Limits
The CBN has not indicated whether the exemption for small lenders will be permanent or temporary. It is likely that the CBN will continue to monitor the situation and may adjust the limits in the future if necessary.
Conclusion
The CBN’s decision to exempt small lenders from the limits on cash withdrawals is a welcome move. It will provide much-needed relief to small lenders and will allow them to provide more services to their customers. The future of the cash withdrawal limits remains uncertain, but the exemption is a positive step in the right direction.