The Central Bank of Nigeria (CBN) has announced sweeping adjustments to the nation’s cash-handling framework, removing all limits on cash deposits and raising the weekly withdrawal threshold to N500,000 for individuals—up from the previous N100,000.
The policy changes were detailed in a circular titled “Revised Cash-Related Policies,” issued to all banks and signed by Dr. Rita Sike, Director of the Financial Policy & Regulation Department.
According to the apex bank, the revised guidelines form part of ongoing efforts to reduce the high cost of cash management, strengthen security around currency circulation, and mitigate money-laundering risks linked to Nigeria’s heavy dependence on cash transactions. The CBN noted that earlier restrictions were introduced to encourage digital payments, but evolving economic realities now necessitate a recalibration of those rules.
Key Changes Effective January 1, 2026
Under the new policy:
- The cumulative deposit limit—previously subject to processing fees—has been abolished.
- The weekly withdrawal limit has been raised to N500,000 for individuals and N5 million for corporate organisations.
- Withdrawals exceeding these new limits will attract excess withdrawal fees, as outlined in the circular.
- The special monthly dispensation allowing individuals to withdraw N5 million and corporates N10 million once a month has been discontinued.
ATM and POS Withdrawals
Daily ATM withdrawals remain capped at N100,000 per customer, with a weekly ceiling of N500,000, which forms part of the overall weekly withdrawal limit across all channels—including POS transactions.
Withdrawals above approved thresholds will attract a charge of 3% for individuals and 5% for corporates, with proceeds shared 40% to the CBN and 60% to the operating financial institution.
Operational Requirements for Banks
The circular also directs banks to:
- Stock all denominations in ATMs.
- Maintain the existing N100,000 limit on over-the-counter encashment of third-party cheques, which will count toward the weekly withdrawal limit.
- Submit monthly regulatory returns to the Banking Supervision Department, Other Financial Institutions Supervision Department, and Payments System Supervision Department.
Exemptions and Removed Privileges
Revenue accounts of the federal, state, and local governments, along with accounts held by microfinance and primary mortgage banks, remain exempt from these withdrawal rules. However, the longstanding exemption previously granted to embassies, diplomatic missions, and donor agencies has now been withdrawn.
The updated guidelines underscore the CBN’s broader strategy to balance financial inclusion, security, and operational efficiency as the nation adapts to a more dynamic payment ecosystem.
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