The Central Bank of Nigeria released a new directive announcing significant revisions to the country’s cash-related policies. The circular, issued by the Financial Policy and Regulation Department of the CBN, introduces a refreshed framework designed to ease the rising cost of cash management, address growing security concerns, and reduce the systemic risks associated with Nigeria’s reliance on physical cash.
Effective January 1, 2026, banks and other deposit-taking institutions are required to fully comply with the updated guidelines. One of the most notable changes is the removal of cumulative deposit limits, which means customers will no longer incur fees for excess cash deposits. This adjustment is expected to reduce the financial burden on businesses and individuals who rely heavily on banking halls and cash lodgments.
The CBN also introduced a clearer structure for weekly cash withdrawals. Individuals will now have a nationwide withdrawal limit of 500,000, while corporate organizations will have a limit of 5Million Naira. Withdrawals above these thresholds will attract excess withdrawal fees as specified in the circular. In addition, the longstanding special authorization for monthly cash withdrawals of up to5million Naira for individuals and 10 million Naira for corporates has been abolished.
Daily cash withdrawals from Automated Teller Machines have now been capped at N100,000per customer, with a weekly ceiling of N500,000. While all denominations may continue to be loaded into ATMs, withdrawals made through ATMs and point-of-sale terminals form part of each customer’s weekly limit. Customers who exceed the prescribed thresholds will incur fees of 3 percent for individuals and 5percent for corporate accounts, with proceeds shared between the CBN and the financial institution.
The CBN also clarified that banks must continue to limit the encashment of third-party cheques across the counter to N100,000. Any such encashment will count toward the customer’s weekly withdrawal total. In line with monitoring efforts, banks are required to submit monthly reports on cash withdrawal activities above the approved limits, along with returns on cash deposits, to the designated supervisory departments.
To ensure transparency, Deposit Money Banks are mandated to maintain separate internal ledgers to account for processing charges related to excess cash withdrawals. The circular also outlines specific exemptions, including accounts belonging to federal, state, and local government revenue-generating entities, as well as accounts operated by microfinance banks and primary mortgage institutions with commercial or non-interest banks.
These revised policies reaffirm the Central Bank’s commitment to promoting a less-cash economy, strengthening payment systems, and encouraging wider adoption of electronic channels. As Nigeria continues to advance toward a more modern financial environment, consumers and businesses are encouraged to explore digital alternatives that offer convenience, cost-efficiency, and security.
The document was issued on December 2, 2025, and signed by the Financial Policy and Regulation Department of the Central Bank of Nigeria. The revised policies reaffirm the Bank’s commitment to promoting a less cash economy, strengthening payment systems, and encouraging wider adoption of electronic channels. As Nigeria continues to advance toward a more modern financial environment, consumers and businesses are encouraged to explore digital alternatives that deliver convenience, cost efficiency, and security.
