The Central Bank of Nigeria (CBN) has announced a major overhaul of its cash-handling policies. The apex bank has effectively abolished the ceiling on cash deposits. Additionally, it has increased the weekly withdrawal limit for individuals to N500,000.
These new directives were detailed in a circular titled “Revised Cash-Related Policies.” It was signed by Dr. Rita Sike, the Director of the Financial Policy and Regulation Department.
According to the CBN, these adjustments align with current economic realities. They also aim to curb the high cost of cash management, address security risks, and mitigate money-laundering vulnerabilities in Nigeria’s economy.
Key Changes Effective January 1, 2026
The revised guidelines will take effect on January 1, 2026. They introduce several critical amendments to the banking framework:
- Deposits: The cap on cumulative cash deposits is removed. Furthermore, the CBN has eliminated processing fees previously charged to customers for exceeding deposit limits.
- Withdrawals: The new weekly withdrawal ceiling is set at N500,000 for individuals (up from N100,000) and N5 million for corporate entities. This limit applies cumulatively across all channels, including ATMs, Point of Sale (POS) terminals, and over-the-counter transactions.
Penalties and Specific Restrictions
The CBN clarified that withdrawals exceeding these thresholds will attract processing fees.
- Individuals: Charged a 3% fee on the excess amount.
- Corporate Organizations: Charged a 5% fee on the excess amount.
Proceeds from these fees will be split. The CBN will receive 40%, while the servicing bank retains 60%.
Regarding specific channels, daily ATM withdrawals remain restricted to N100,000. However, these withdrawals count toward the customer’s total weekly limit of N500,000. Banks must also ensure ATMs are stocked with all available currency denominations.
Similarly, over-the-counter withdrawals using third-party cheques remain fixed at N100,000. This also contributes to the weekly total.
Policy Scrappage and Exemptions
In a move to tighten the framework, the CBN has scrapped the “special monthly approval” provision. Previously, this waiver allowed individuals and corporates to withdraw N5 million and N10 million, respectively, once a month without penalty.
The circular also revoked cash handling privileges previously granted to embassies, diplomatic missions, and donor agencies.
However, specific exemptions remain:
- Revenue-collecting accounts operated by federal, state, or local governments.
- Accounts belonging to Microfinance Banks and Primary Mortgage Banks domiciled with commercial or non-interest banks.
To ensure strict adherence, Deposit Money Banks must submit monthly compliance reports to the CBN’s supervisory departments.
