The Central Bank of Nigeria (CBN) has introduced major adjustments to its cash-handling regulations, including the full removal of the limit on cash deposits, in a move aimed at modernising currency management and improving financial transparency. The new measures were detailed in a circular titled “Revised Cash-Related Policies,” signed by Dr. Rita Sike, Director of the Financial Policy & Regulation Department, and released to all banks on Wednesday.
According to the CBN, the revised policy will take effect from January 1, 2026. Under the new framework, the cumulative weekly cash withdrawal permissible across all channels has been reviewed to N500,000 for individual customers and N5 million for corporate bodies. Withdrawals that exceed these approved thresholds will attract charges, with individuals paying a 3 per cent excess withdrawal fee and corporate entities paying 5 per cent. Revenue from these charges is to be split between the CBN and the operating financial institution on a 40:60 ratio.
The apex bank confirmed that the previous limit placed on cash deposits has been abolished, and the fee formerly imposed on excess deposits will no longer apply. It also announced the discontinuation of the special monthly exemption that previously allowed individuals to withdraw up to N5 million and corporate organisations N10 million once every month.
The circular restated that for Automated Teller Machines, the maximum withdrawal remains N100,000 per day per customer, forming part of the broader weekly withdrawal ceiling. Banks have also been directed to ensure that ATMs are stocked with all denominations of the naira. The existing N100,000 cap on over-the-counter encashment of third-party cheques remains unchanged, and such withdrawals will count towards the overall weekly limit.
Explaining the rationale behind the policy revisions, the CBN said the changes were informed by the need to reduce the rising cost of managing physical cash, address growing security concerns linked to cash movement, and curb money laundering risks tied to the nation’s high level of cash usage. The bank added that earlier cash-related directives were responses to evolving economic conditions and efforts to promote electronic payment channels, noted that it had become necessary to streamline and update those provisions to fit current realities.
To strengthen oversight, the CBN mandated all banks to submit monthly reports to the Banking Supervision Department, the Other Financial Institutions Supervision Department, and the Payments System Supervision Department.
