The Central Bank of Nigeria (CBN) has announced a major revision to its cash management policies, effective January 1, 2026. The apex bank has completely removed the cumulative limit on cash deposits and simultaneously raised the weekly cash withdrawal ceiling across all channels for individuals from N100,000 to N500,000.
The policy shift, detailed in a circular titled “Revised Cash-Related Policies,” and signed by Dr. Rita Sike, Director of the Financial Policy & Regulation Department, aims to streamline existing provisions and address contemporary economic realities.
Key Policy Changes Detailed
The CBN stated the revisions are part of its ongoing efforts to “moderate the rising cost of cash management, address security concerns, and curb money laundering risks associated with the country’s heavy reliance on cash.”
Under the new regime, the following key changes will take effect:
1. Deposit Limits Abolished:
The circular confirms the complete removal of the cumulative deposit limit, meaning individuals and corporates can deposit any amount without restriction. Consequently, the fee previously charged on excess deposits has also been abolished.
2. Increased Withdrawal Limits:
The cumulative weekly withdrawal limit across all channels, which includes over-the-counter, ATM, and Point-of-Sale (POS) transactions, has been reviewed upwards:
- Individuals: Increased to N500,000 weekly.
- Corporates: Increased to N5 million weekly.
Furthermore, the special monthly authorization that previously allowed individuals to withdraw N5 million and corporates N10 million once a month has been abolished and subsumed into the new weekly limits.
3. Penalties for Excess Withdrawals:
Withdrawals above the newly stipulated weekly thresholds will now attract explicit excess withdrawal charges:
- Individuals: 3 per cent charge.
- Corporate Customers: 5 per cent charge.
These excess charges will be shared between the CBN (40 per cent) and the operating bank or financial institution (60 per cent).
4. ATM and Third-Party Transactions:
Daily ATM withdrawal remains capped at N100,000 per customer. Crucially, the total weekly ATM withdrawal maximum of N500,000 is counted as part of the overall cumulative weekly limit applicable to all channels.
The CBN maintained the existing limit on over-the-counter encashment of third-party cheques, pegged at N100,000, and directed that such withdrawals must also be counted as part of the cumulative weekly limit. Banks are also directed to ensure all currency denominations are loaded in their ATMs.
Exemptions and Compliance
The CBN clarified that specific revenue-generating accounts belonging to federal, state, and local governments are exempted from the new withdrawal and excess-fee rules. Similarly, accounts held by microfinance banks and primary mortgage banks with commercial and non-interest banks are also exempted.
However, a notable change is the removal of the long-standing exemption previously enjoyed by embassies, diplomatic missions, and aid-donor agencies, meaning these entities will now be subject to the new withdrawal and fee structure.
All banks are required to render monthly returns on compliance to the relevant supervisory departments of the CBN, including the Banking Supervision Department, Other Financial Institutions Supervision Department, and the Payments System Supervision Department.
