The Central Bank of Nigeria (CBN), has announced major adjustments to its cash-handling regulations, abolishing the ceiling on cash deposits and significantly raising the weekly withdrawal limit across all platforms to ₦500,000, up from the previous ₦100,000. The policy shift was communicated through 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 overhaul aligns with ongoing efforts to curb the rising cost of managing physical cash, tackle security risks, and reduce money-laundering vulnerabilities in Nigeria’s largely cash-driven economy. While earlier directives sought to nudge Nigerians toward electronic payment methods, the CBN noted that a review was necessary to reflect current economic realities.
Key Amendments in the New Policy
Effective January 1, 2026, the circular introduced several major changes:
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Deposit ceiling abolished: Banks will no longer impose limits on cumulative cash deposits, and additional charges for exceeding former deposit caps have been eliminated.
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New weekly withdrawal limits: Individuals may now withdraw up to ₦500,000 per week, while corporate entities can access ₦5 million per week across all channels.
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Excess withdrawal fees: Amounts above the stated limits will attract charges of 3% for individuals and 5% for corporates, to be split 40% to the CBN and 60% to the servicing bank.
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Scrapping of monthly special approvals: The previous provision allowing individuals to withdraw ₦5 million and corporates ₦10 million once a month has been removed.
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ATM restrictions: Daily ATM withdrawals remain capped at ₦100,000, contributing to the overall weekly limit of ₦500,000. POS and other channels also count toward the weekly ceiling.
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Over-the-counter and cheque withdrawals: The ceiling on over-the-counter withdrawals using third-party cheques remains at ₦100,000, which also counts toward a customer’s weekly limit.
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Bank compliance directives: Banks are required to stock ATMs with all available denominations and submit monthly compliance reports to the relevant supervisory departments, including Banking Supervision, Other Financial Institutions Supervision, and Payments System Supervision.
Exemptions and Special Notes
The circular clarified that revenue-collecting accounts of federal, state, and local governments are exempted from the new rules. Similarly, accounts belonging to microfinance banks and primary mortgage banks domiciled with commercial or non-interest banks remain unaffected.
However, the privileges previously extended to embassies, diplomatic missions, and donor agencies have been withdrawn under the revised policy.
Implications for Nigerians
The CBN’s adjustments are intended to simplify cash management, reduce friction in banking transactions, and maintain oversight over cash flows, while still encouraging the adoption of electronic payments.
Benefits include:
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Greater flexibility for depositors and businesses without fear of exceeding deposit limits.
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Easier cash access for individuals and corporates.
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Reduced administrative burden on banks and customers.
Potential challenges:
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Weekly withdrawal limits may still be restrictive for some businesses operating in cash-intensive sectors.
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Exceeding limits incurs fees, which could affect liquidity planning.
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Cash usage is still regulated; full liberalisation has not been achieved.
The Bigger Picture
The policy reflects the CBN’s attempt to balance regulatory oversight with practical economic realities.
While the bank continues to encourage digital payments, it recognizes the ongoing centrality of cash in Nigeria’s economy, especially for households, small businesses, and the informal sector. By removing deposit limits and expanding withdrawal thresholds, the CBN aims to streamline cash operations, reduce security risks, and maintain financial transparency while adapting to current economic needs.
May Nigeria succeed.