The Bank of Nigeria (CBN) has announced sweeping revisions to the nation’s cash-handling regulations, removing longstanding deposit limits and significantly increasing weekly cash withdrawal ceilings across multiple banking channels.
The updated policy, unveiled in a circular titled “Revised Cash-Related Policies” and signed by Dr. Rita Sike, Director of the Financial Policy and Regulation Department, will take effect on January 1, 2026.
Under the new framework, the apex bank has eliminated the cumulative cash deposit limit previously imposed on account holders, meaning that banks will no longer charge fees for excess cash deposits. This marks a major departure from earlier cash-moderation policies designed to discourage bulk cash transactions.
The circular further announced a sharp upward review of the cumulative weekly withdrawal limit. Individuals will now be allowed to withdraw up to ₦1.5 million per week, an increase from the earlier ₦100,000 cap.
Corporate organisations can withdraw up to ₦5 million weekly, with any excess withdrawals attracting processing fees of 3 percent for individuals and 5 percent for companies. These fees will be shared between the CBN and respective financial institutions in a 40–60 ratio.
In addition, the CBN has abolished the special authorisation window that previously permitted individuals to withdraw up to ₦5 million and companies ₦10 million once monthly under strict conditions. The regulator noted that this exemption is no longer necessary under the revised regime.
ATM withdrawal limits have also been adjusted, with customers now permitted to withdraw up to ₦100,000 daily, subject to a weekly ceiling of ₦500,000. The CBN clarified that withdrawals made through ATMs and point-of-sale (PoS) terminals will be counted as part of the overall weekly withdrawal allowance.
The bank also removed restrictions on the denominations that can be dispensed through ATMs, allowing all currency denominations to be loaded.
The circular retained the ₦100,000 limit on over-the-counter encashment of third-party cheques, emphasising that such withdrawals will also count toward weekly withdrawal totals.
Banks are required to submit comprehensive monthly reports to supervisory departments, covering compliance and transaction patterns under the new policy.
While several institutions will continue to enjoy specific exemptions—including revenue-generating accounts of federal, state and local governments, as well as accounts belonging to microfinance and primary mortgage banks—the CBN has withdrawn exemptions previously granted to embassies, diplomatic missions, and donor agencies.
Explaining the rationale behind the policy overhaul, the CBN noted that earlier cash-related regulations were introduced to manage rising cash-management costs, curb money laundering, and encourage the adoption of electronic payment channels.
However, the evolving financial landscape and economic realities necessitated a consolidation and modernisation of these rules.
The updated framework is expected to ease cash access for Nigerians while maintaining oversight mechanisms aimed at safeguarding the financial system.
