The Central Bank of Nigeria (CBN) has announced major adjustments to its cash-handling regulations, removing the limit on cash deposits and increasing the weekly cash withdrawal limit from N100,000 to N500,000.
The reforms were detailed in a circular titled “Revised Cash-Related Policies”, signed by Dr Rita Sike, Director of the Financial Policy & Regulation Department.
According to the circular, the new policies take effect from January 1, 2026.
The CBN stated: “Limit on deposit and associated fee on excess deposit — the cumulative deposit limit is hereby removed and the fee for excess deposit shall no longer apply.”
It further noted that cumulative weekly withdrawals for individuals will now be capped at N1.5 million and N5 million for corporate bodies. Withdrawals above these limits will attract excess withdrawal fees.
The bank also announced the end of special authorisation withdrawals of N85 million for individuals and N10 million for corporate organisations.
On ATM usage, the circular said: “Automated Teller Machine (ATM) withdrawal limit shall be N100,000 daily (per customer), subject to a maximum of N500,000 weekly.” Withdrawals made through ATMs and POS terminals will count toward the weekly limit.
Excess withdrawals will attract fees of 3% for individuals and 5% for corporate customers. The charges will be shared 40% to the CBN and 60% to the financial institution.
The CBN also confirmed that all denominations may now be loaded into ATMs.
The limit on over-the-counter encashment of third-party cheques remains at N100,000, and such withdrawals will form part of the weekly limit.
The circular added that certain accounts will be exempt from specific provisions, including revenue-generating accounts of federal, state, and local governments, as well as accounts of microfinance and primary mortgage banks. However, embassies, diplomatic missions, and donor agencies will no longer enjoy exemptions.
Explaining the rationale behind the policy shift, the CBN said the changes follow years of efforts to curb high cash usage, reduce cash-management costs, address security risks, and limit money-laundering vulnerabilities. It added that evolving economic realities necessitated a review of past cash-related policies to better align them with current needs.
Further details are expected in subsequent regulatory guidance.
