By Our Reporter
The Central Bank of Nigeria (CBN) has introduced sweeping changes to its cash-management rules, removing the cap on cash deposits and increasing the weekly withdrawal limit for individuals to N500,000—up from the previous N100,000.
The reforms were detailed in a circular titled “Revised Cash-Related Policies” and signed by Dr. Rita Sike, Director of the Financial Policy & Regulation Department. According to the apex bank, the overhaul is designed to reduce the escalating cost of handling physical cash, address security concerns, and minimize money-laundering risks associated with Nigeria’s cash-centric economy.
The CBN noted that while earlier cash policies were aimed at encouraging electronic payments, economic realities have necessitated an update. Effective January 1, 2026, the circular outlines several key changes: the removal of limits on cumulative deposits and the elimination of charges previously imposed for exceeding those limits.
Additionally, the CBN introduced new withdrawal ceilings—N500,000 weekly for individuals and N5 million for corporate bodies—applicable across all banking channels. Withdrawals beyond the approved limits will attract excess-withdrawal charges as stipulated in the revised guidelines. The earlier provision that allowed special monthly approvals (N5 million for individuals and N10 million for corporate entities) has been discontinued.
ATM withdrawals remain capped at N100,000 per day and N500,000 per week, contributing to the overall withdrawal limit across ATMs, POS terminals, and other access points. Charges on withdrawals above the weekly limits stand at 3% for individuals and 5% for corporate organisations, shared between the CBN (40%) and servicing banks (60%).
Banks have also been directed to load ATMs with all denominations of the naira. The existing N100,000 cap on over-the-counter withdrawals via third-party cheques remains in place and will count toward a customer’s weekly limit.
Furthermore, deposit money banks must submit monthly compliance reports to relevant supervisory departments, including Banking Supervision, Other Financial Institutions Supervision, and Payments System Supervision.
The circular also clarified exemptions: revenue-collection accounts of federal, state, and local governments are not subject to the new rules. Accounts belonging to microfinance banks and primary mortgage banks hosted by commercial or non-interest banks also remain exempt. However, previously granted privileges for embassies, diplomatic missions, and donor agencies have been withdrawn.
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