NEWS
Detailed Policy Update from Nigeria’s Apex Bank, as CBN Issues Major Policy Shift as Cash Deposit Limit Removed
…as Weekly Withdrawal Threshold Raised to ₦500,000 in Sweeping Financial Reforms Effective January 2026
In a landmark policy overhaul aimed at reshaping Nigeria’s cash-handling framework, the Central Bank of Nigeria (CBN) has announced extensive revisions to its cash-related regulations, including the removal of deposit limits and a sharp increase in weekly withdrawal thresholds across all banking channels.
The new directives contained in a circular titled Revised Cash-Related Policies and signed by Dr. Rita Sike, Director of the Financial Policy & Regulation Department—signal a strategic repositioning of the nation’s currency management architecture.
According to the apex bank, the reforms are designed to address the high cost of managing physical cash, tackle security concerns associated with bulk cash movement, and minimise money-laundering vulnerabilities arising from Nigeria’s cash-intensive economy.
While the earlier cash policies were implemented to accelerate the adoption of digital payment systems, the CBN noted that evolving economic realities and operational challenges necessitated a comprehensive review and streamlining of existing rules.
Key Policy Changes Taking Effect from January 1, 2026:
1. Cash Deposit Limit Abolished:
The cumulative cash deposit limit previously enforced on individuals and businesses has been scrapped. Correspondingly, charges once imposed on excess deposits have been eliminated.
2. Higher Weekly Withdrawal Limits:
i. Individuals: Up to ₦500,000 weekly, up from ₦100,000
ii. Corporate Bodies: Up to ₦5 million weekly
iii. Withdrawals exceeding these limits will attract regulatory charges.
3. Excess Withdrawal Charges Introduced:
— Withdrawals above the approved thresholds will incur:
i. 3% charge for individuals
ii. 5% charge for corporate organisations
These charges will be shared between the CBN and the operating bank in a 40:60 ratio.
4. Special Monthly Withdrawal Authorisation Cancelled:
— The previous allowance enabling:
i. Individuals to withdraw ₦5 million monthly, and
ii. Corporates to withdraw ₦10 million,
has been discontinued.
5. ATM Withdrawal Rules Remain in Force:
i. Daily limit: ₦100,000
ii. Weekly limit: ₦500,000
These limits form part of the overall weekly cap across all channels—including POS terminals.
6. Mandate on ATM Denomination Loading:
Banks must now load all denominations into ATMs nationwide to enhance currency availability and ease-of-access for customers.
7. Third-Party Cheque Restrictions Maintained:
Over-the-counter encashment of third-party cheques remains capped at ₦100,000, and such transactions will count toward customers’ cumulative weekly withdrawal limits.
8. Monthly Reporting Requirement for Banks:
— Deposit Money Banks must submit compliance reports to supervisory departments, including:
i. Banking Supervision Department
ii. Other Financial Institutions Supervision Department
iii. Payments System Supervision Department
The CBN clarified that certain categories of accounts will not be affected by the new rules:
— Exempted:
i. Revenue-generating accounts of the Federal, State and Local Governments
ii. Accounts belonging to Microfinance Banks
iii. Primary Mortgage Banks operating accounts with commercial and non-interest banks
— Exemption Withdrawn:
i. Embassies
ii. Diplomatic missions
iii. Donor agencies
These entities will now operate fully under the new policy framework.
The sweeping revisions mark one of the most significant changes to Nigeria’s cash-policy landscape in recent years.
Analysts believe the new framework may strike a balance between controlling cash circulation and easing the operational difficulties faced by businesses and citizens under previous stricter limits.
With implementation set for January 1, 2026, Deposit Money Banks and customers alike are already adjusting to a potentially transformative shift in the nation’s financial ecosystem.