Nigeria’s Central Bank has announced sweeping changes to its cash-handling rules, scrapping long-standing deposit limits and raising weekly withdrawal thresholds in a move the bank says is designed to reflect “present-day realities” in the country’s financial system.
The changes were detailed in a circular sent to commercial banks and signed by Dr Rita Sike, Director of the Financial Policy and Regulation Department.
The bank said the adjustments form part of efforts to lower the cost of cash management, improve security and reduce the risks of money laundering in an economy still heavily reliant on physical cash.
Under the revised framework, which takes effect on 1 January 2026, customers will no longer face restrictions on how much they can deposit into their bank accounts. Charges previously imposed on deposits above approved limits have also been abolished.
The Central Bank has also raised the cumulative weekly withdrawal limit to ₦500,000 for individuals and ₦5 million for corporate bodies five times higher than the existing cap. Withdrawals beyond these figures will attract additional fees outlined in the circular. The special monthly waivers that allowed individuals to withdraw up to ₦5 million and companies up to ₦10 million once a month have been discontinued.
Despite the broader withdrawal flexibility, ATM limits remain unchanged. Customers may still withdraw only up to ₦100,000 a day and ₦500,000 a week at cash machines, with those amounts counted as part of the overall weekly limit across all channels, including point-of-sale transactions.
The CBN explained that excess withdrawals will attract charges of 3% for individuals and 5% for corporate customers. The revenue will be shared between the banks providing the service and the regulator. Banks have also been instructed to load all denominations of the naira in their ATMs, while the existing ₦100,000 ceiling on third-party cheque encashment remains in place.
The circular notes exemptions for federal, state and local government revenue-generating accounts, and for accounts operated by microfinance and primary mortgage banks. However, embassies, diplomatic missions and donor agencies previously exempt from similar rules will now fall under the new policy.
The Central Bank directed all financial institutions to file monthly compliance reports with the relevant supervisory departments. It says the revised rules mark a significant step in updating Nigeria’s cash policy, balancing the need for flexibility with the aim of reducing security risks and encouraging the continued shift towards digital payments.