In an effort to stabilize the naira and tackle Nigeria’s economic challenges, the Central Bank has introduced several measures aimed at reducing cash reliance and enhancing financial security. Starting January 1, 2026, individuals will have a weekly cash withdrawal limit of 500,000 naira, while corporations will be limited to 5 million naira. Exceeding these limits will incur fees of 3% for individuals and 5% for businesses. This initiative is part of a broader strategy to mitigate money laundering risks and promote cashless transactions.
The Central Bank is also tightening its regulation of the foreign exchange market by licensing 82 Bureau De Change (BDC) operators under updated guidelines. This follows a prior crackdown where over 4,000 BDC licenses were revoked due to regulatory breaches. The new framework prohibits street trading of foreign exchange and sets a minimum capital requirement of 2 billion naira for BDCs, aiming to enhance oversight, reduce illicit forex activities, and address issues like market distortions and dollar shortages.
In addition, the Central Bank has approved a payment of 185 billion naira (around $128 million) to settle long-standing debts to gas producers that supply power generators. This move is intended to restore confidence in Nigeria’s energy market and improve electricity supply, a key factor impeding economic growth. Clearing these debts is expected to stimulate investments in the gas sector, alleviate financial pressures, and enhance gas delivery to power plants.
Overall, these comprehensive measures underscore the Central Bank’s commitment to stabilizing the naira and addressing Nigeria’s complex economic challenges through stricter cash management, foreign exchange regulation, and energy sector debt resolution.
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