THE Central Bank of Nigeria (CBN) has announced key adjustments to its cash-handling regulations, abolishing the ceiling on cash deposits and expanding the weekly withdrawal limit across all platforms to N500,000, a significant rise from the previous N100,000.
The Director of the Financial Policy & Regulation Department, Rita Sike, communicated the policy shift through a circular titled: “Revised Cash-Related Policies.”
In the document, the apex bank explained that the overhaul aligned with efforts to curb the surging cost of managing physical cash, tackle security risks, and stem money-laundering vulnerabilities linked to Nigeria’s cash-driven economy.
The CBN noted that although earlier cash directives were created to push Nigerians toward electronic payment options, a review became necessary to align with current economic conditions.
The circular listed several major amendments taking effect from January 1, 2026, The cap on cumulative deposits has been abolished, and additional charges for surpassing former deposit limits have been eliminated.
The bank also announced a fresh cumulative withdrawal ceiling of N500,000 weekly for individuals and N5 million for corporate entities across all access points. Any amount above the stated limits will incur excess-withdrawal fees as outlined in the new guidelines.
The earlier monthly special approval, which permitted individuals to draw N5 million and corporates N10 million once every month, has now been scrapped.
For Automated Teller Machine (ATM) usage, customers will still be restricted to N100,000 daily, with a total weekly limit of N500,000, which contributes to the overall weekly withdrawal total applicable to ATMs, Point-of-Sales (POS) machines, and other channels.
The CBN added that withdrawals exceeding the approved thresholds would attract charges of three per cent for individuals and five per cent for organisations, to be split 40 per cent to the CBN and 60 per cent to the servicing bank or financial institution.
Banks have also been instructed to ensure ATMs are stocked with all available currency denominations. Meanwhile, the ceiling on over-the-counter withdrawals using third-party cheques remains at N100,000, which will also count toward a customer’s weekly limit.
In addition, deposit money banks are mandated to submit monthly compliance reports to departments responsible for supervision, including banking supervision, other financial institutions supervision, and payments system supervision.
The circular clarified that the new rules would not apply to 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 also remain exempted.
However, the previous privileges granted to embassies, diplomatic offices, and donor agencies have been withdrawn.
Recall, on December 17, 2024, the CBN set a daily cash-out limit of N100,000 per customer transacting on point-of-sale (PoS) terminals.
The CBN clarified then that the directives were to streamline agency banking operations, encourage electronic payment adoption, and enhance the country’s cashless economy drive.
It further said that the directives helped with uniform operational standards, fraud prevention, and improved monitoring within the agent banking sector.
Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.