The Central Bank of Nigeria (CBN) has implemented sweeping changes to its cash-handling regulations, removing all limits on cash deposits and raising the weekly withdrawal threshold across all financial platforms. The policy update was issued via a circular titled “Revised Cash-Related Policies”, endorsed by Dr. Rita Sike, Director of the Financial Policy & Regulation Department.

According to the apex bank, the revised guidelines aim to curb the rising cost of managing physical cash, reduce security risks, and address money-laundering vulnerabilities tied to Nigeria’s cash-heavy financial culture.

Why the CBN Revised Its Cash Policies

The CBN explained that earlier cash restrictions were designed to encourage the use of electronic payments. However, given current economic realities, inflationary pressures, and increased operational costs for banks, a review became necessary.

Key Policy Changes Taking Effect January 1, 2026

1. All Deposit Limits Abolished

The circular confirms:

No more caps on cumulative deposits
All charges for excess deposits eliminated

Businesses and individuals can now deposit any amount without penalties.

2. New Weekly Withdrawal Limits

The CBN introduced fresh withdrawal limits:

Individuals: N500,000 weekly
Corporate Entities: N5 million weekly

These apply across:

Bank counters
ATMs
POS terminals
Agent banking platforms

3. Excess Withdrawal Fees Introduced

Withdrawals above the approved limit attract:

3% charge for individuals
5% charge for organisations

Revenue from these charges will be shared:

40% to the CBN
60% to the bank servicing the transaction

4. ATM Withdrawal Rules Remain

Daily limit: N100,000
ATM withdrawals count toward the weekly total

Banks must also stock ATMs with all available currency denominations.

5. Third-Party Cheque Limit Retained

The limit for over-the-counter third-party cheque withdrawals remains N100,000, contributing to the weekly withdrawal total.

6. Scrapping of Previous Monthly Special Approvals

The CBN has removed the rule that previously allowed:

Individuals: N5 million monthly special withdrawal
Corporates: N10 million monthly special withdrawal

These exemptions no longer exist.

7. Mandatory Compliance Reporting

Deposit money banks (DMBs) must submit monthly compliance reports to:

Banking Supervision Department
Payments System Supervision Department
Other Financial Institutions Supervision Department

8. Exempted Accounts

The new rules do not apply to:

Federal, state, and local government revenue-collection accounts
Microfinance banks (MFBs)
Primary mortgage banks (PMBs)

However, embassies, diplomatic offices, and donor agencies—previously exempt—are no longer included in the exemption list.

What This Means for Nigerians

This marks one of the most significant cash-policy adjustments in years. With deposit flexibility restored and withdrawal ceilings raised, the CBN aims to strike a balance between:

Reducing cash-handling costs
Encouraging digital payments
Enhancing financial system security
Supporting businesses operating in cash-intensive sectors

The changes reflect the CBN’s attempt to adapt monetary policy to current economic realities while maintaining oversight of large-volume cash movements.