iDeemlawfulThe Central Bank of Nigeria, CBN, has unveiled significant changes to its cash-handling policy, scrapping the limit on cash deposits and increasing the weekly withdrawal threshold across all channels to N500,000, up from the previous N100,000.
The update was contained in a circular addressed to financial institutions and titled “Revised Cash-Related Policies,” signed by Dr. Rita Sike, Director of the Financial Policy & Regulation Department.
According to the document, the policy review aligns with efforts to reduce the rising cost of managing currency, address security challenges, and limit money-laundering risks linked to Nigeria’s heavily cash-based financial system.
The CBN noted that although earlier directives were designed to promote electronic payments, prevailing economic realities necessitated a fresh assessment.
Effective January 1, 2026, the circular outlined key changes. The limit on cumulative deposits has been removed, and charges previously imposed for exceeding deposit caps have been discontinued.
The bank also introduced an updated cumulative withdrawal limit of N500,000 weekly for individuals and N5 million for corporate organisations across all access points. Withdrawals exceeding the new thresholds will attract excess-withdrawal charges as stipulated in the revised guidelines.
The earlier monthly special approval that allowed individuals to withdraw N5 million and corporates N10 million once a month has now been cancelled.
The CBN added that ATM users will remain restricted to N100,000 daily, with a weekly cap of N500,000, which contributes to the overall withdrawal tally across ATMs, POS terminals, and other channels.
The apex bank further disclosed that amounts beyond approved limits will attract fees of 3% for individuals and 5% for companies, with the charges distributed 40% to the CBN and 60% to the servicing financial institution.
The circular also directed banks to ensure ATMs are stocked with all currency denominations. The limit on over-the-counter third-party cheque withdrawals remains N100,000, which will count towards the customer’s weekly limit.
Additionally, deposit money banks are required to submit monthly compliance reports to supervisory departments, including Banking Supervision, Other Financial Institutions Supervision, and Payments System Supervision.
The document clarified that the revised rules do not apply to revenue accounts of federal, state, or local governments.
Accounts operated by microfinance banks and primary mortgage banks domiciled in commercial or non-interest banks also remain exempt.
However, exemptions previously granted to embassies, diplomatic offices, and donor agencies have been withdrawn.
