The Central Bank of Nigeria (CBN) has announced sweeping changes to its cash handling regulations, abolishing limits on cash deposits and significantly increasing weekly withdrawal thresholds across the banking system.
The policy update, contained in a circular titled “Revised Cash-Related Policies” and signed by Dr. Rita Sike, Director of the Financial Policy & Regulation Department, was released on Tuesday.
According to the apex bank, the revisions are part of broader efforts to curb escalating cash management costs, improve security, and reduce money-laundering risks linked to Nigeria’s heavy dependence on cash. The CBN noted that earlier restrictions were introduced to discourage excessive cash usage and promote electronic payment channels, but evolving realities necessitated a review.
Effective January 1, 2026, the CBN introduced major changes, including:
- Removal of the cumulative cash deposit limit, eliminating fees previously charged for deposits above set thresholds.
- Increase of the weekly cash withdrawal limit to ₦500,000 for individuals and ₦5 million for corporates, across all channels.
- Withdrawals exceeding these limits will now attract excess withdrawal charges—3% for individuals and 5% for corporates—shared between the CBN and the operating bank.
- Abolition of the special monthly withdrawal authorization, which previously allowed individuals and corporates to withdraw ₦5 million and ₦10 million once a month.
- ATM withdrawals remain capped at ₦100,000 daily and ₦500,000 weekly, which forms part of the overall weekly withdrawal limit.
The circular also directed banks to ensure all ATM machines are loaded with all denominations, while maintaining the existing ₦100,000 over-the-counter limit for third-party cheque encashment, which will also count toward weekly withdrawal totals.
Financial institutions are further required to file monthly compliance reports to supervisory departments, including Banking Supervision, Other Financial Institutions Supervision, and Payments System Supervision.
The CBN maintained exemptions for revenue accounts of federal, state, and local governments, as well as accounts of microfinance and primary mortgage banks held with commercial and non-interest banks. However, the exemption previously granted to embassies, diplomatic missions, and donor agencies has now been withdrawn.
The new policy marks one of the most significant adjustments to cash management rules since the CBN introduced its cashless policy over a decade ago.
