The Central Bank of Nigeria (CBN) has announced a major shake-up of its cash-handling policies, removing all limits on cash deposits and raising the weekly withdrawal cap for individuals to N500,000. The new rules, outlined in a circular titled “Revised Cash-Related Policies” and signed by Dr. Rita Sike, Director of Financial Policy & Regulation, will take effect on January 1, 2026.
The apex bank said the changes aim to “moderate the rising cost of cash management, address security concerns, and curb money laundering risks” associated with Nigeria’s heavy reliance on cash. Earlier restrictions had encouraged Nigerians to adopt electronic payments, but the CBN noted that “updating these provisions to reflect present-day realities became necessary.”
One of the most significant changes is the removal of the cumulative cash deposit limit. Under the new guidelines, banks will no longer charge customers fees for deposits above previous thresholds. Meanwhile, the weekly withdrawal limit has been increased to N500,000 for individuals and N5 million for corporate accounts, with excess withdrawals subject to charges of 3 percent for individuals and 5 percent for businesses. Revenue from these charges will be shared between banks and the CBN in a 60:40 split.
The CBN has also scrapped the previous monthly waiver that allowed individuals to withdraw N5 million and corporates N10 million once a month. Daily ATM withdrawals remain capped at N100,000 per customer, forming part of the overall weekly limit. Banks have been instructed to stock ATMs with all denominations, while third-party cheque limits remain unchanged at N100,000 per transaction, contributing to the weekly total.
To ensure compliance, banks are required to submit monthly reports to key supervisory departments. Certain accounts, including federal, state, and local government revenue accounts, as well as microfinance and primary mortgage bank accounts, are exempt from the new rules. The CBN hopes these sweeping reforms will balance the drive for digital payments with easier access to cash for Nigerians.
source: The Sun