December 03, (THEWILL) — The Central Bank of Nigeria (CBN) has announced sweeping changes to the country’s cash-handling regulations, removing the limit on cash deposits and raising the cumulative weekly cash withdrawal limit across all channels for individuals from N100,000 to N500,000.
The new rule, which takes effect from January 1, 2026, was disclosed in a circular signed by Dr Rita Sike, Director of the Financial Policy & Regulation Department.
Titled “Revised Cash-Related Policies”, CBN said the revision aligns with ongoing efforts to reduce the cost of cash management, enhance security, and curb money laundering risks linked to Nigeria’s heavy dependence on physical cash.
The apex bank explained that previous cash restrictions were introduced in response to shifting economic conditions and aimed at encouraging the adoption of electronic payment systems. However, it said the current economic realities necessitated a review and streamlining of those measures.
Under the revised framework, the CBN abolished the cumulative deposit limit and scrapped the charges previously imposed on excess cash deposits. The apex bank also raised the cumulative weekly withdrawal limit to N500,000 for individuals and N5 million for corporate entities across all channels, including ATMs and point-of-sale terminals. Withdrawals exceeding these thresholds will now attract excess withdrawal fees as specified in the circular.
In a major shift, the special monthly authorisation that permitted individuals to withdraw up to N5 million and corporates up to N10 million once a month has been discontinued.
While daily ATM withdrawals remain capped at N100,000, customers can withdraw up to N500,000 weekly, which counts as part of the overall weekly limit. The CBN also directed banks to load all denominations in ATMs to improve accessibility.
Excess cash withdrawals above approved limits will attract charges of 3 percent for individuals and 5% for corporates, with the proceeds shared 40% to the CBN and 60% to the operating financial institution.
The circular further maintained the N100,000 cap on over-the-counter encashment of third-party cheques, noting that such withdrawals will count toward the cumulative weekly withdrawal limit.
Additionally, banks must submit monthly compliance returns to the Banking Supervision Department, Other Financial Institutions Supervision Department, and the Payments System Supervision Department.
The apex bank also clarified exemptions to the policy: revenue-generating accounts of federal, state, and local governments, as well as accounts of microfinance banks and primary mortgage banks held with commercial and non-interest banks, will not be subject to the new withdrawal rules and excess fees. However, the longstanding exemptions previously granted to embassies, diplomatic missions, and donor agencies have been removed.
The CBN said the updated regulatory posture seeks to balance financial inclusion, security, cost efficiency, and transparency in the country’s cash-driven economy.
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