The Central Bank of Nigeria, CBN, has abolished limits on cash deposits and raised the weekly cash withdrawal threshold across all channels to N500,000 for individuals and N5 million for corporate bodies.

The apex bank announced the policy changes in a circular to all banks on Wednesday. The document, titled “Revised Cash-Related Policies”, was signed by Rita Sike, Director of the Financial Policy and Regulation Department.

According to the bank, the review is part of efforts to cut the rising cost of cash management, tackle security concerns, and address money-laundering risks linked to the country’s heavy dependence on cash.

The CBN recalled that earlier restrictions were introduced to reduce cash usage and encourage electronic payments. It, however, noted that current economic realities made it necessary to streamline and update those provisions.

Under the new guidelines, which take effect on January 1, 2026, the cumulative deposit limit has been fully removed, and charges previously imposed on excess cash deposits have been scrapped.

The bank also reviewed upward the cumulative weekly withdrawal limit to N500,000 for individuals and N5 million for corporates.

Withdrawals above these thresholds will attract excess-withdrawal charges as spelt out in the circular. The special monthly waiver that allowed higher withdrawals—N5 million for individuals and N10 million for corporates—has been discontinued.

For ATMs, the daily limit remains N100,000, while weekly withdrawals are capped at N500,000, forming part of the overall weekly ceiling across all channels, including POS transactions.

Excess cash withdrawals above the approved limits will attract 3 per cent charges for individuals and 5 per cent for corporates. The collected fee will be shared 40 per cent to the CBN and 60 per cent to the operating bank.

Banks have also been directed to load all denominations in ATMs. The existing limit on third-party cheque encashment—N100,000 over the counter—remains in place and will count toward the weekly withdrawal limit.

The circular further instructed banks to file monthly compliance returns to the relevant supervisory departments.

The CBN listed exemptions, including revenue accounts of federal, state and local governments, as well as accounts of microfinance and primary mortgage banks domiciled with commercial and non-interest banks. However, embassies, diplomatic missions and donor agencies—previously exempted—will now be subject to the new rules.

For Advert, Event Coverage/Press Conference Invite, Story/Article Publication & Other Media Services
Contact Us On WhatsApp
Send Email To: citizennewsng@gmail.com
Visit Citizen NewsNG To Read More Latest and Interesting News Across Nigeria and the World