The Central Bank of Nigeria (CBN) has announced a significant revision to its cash-related policies. The apex bank has removed all limits on cash deposits and increased the weekly cash withdrawal limit across all channels to N500,000 for individuals and N5 million for corporations. This change is part of a broader strategy to address rising cash management costs, security concerns, and potential money laundering risks associated with a heavy reliance on cash in the economy.

Effective January 1, 2026, all deposit-taking financial institutions in Nigeria are required to comply with the new regulations. The circular issued by the CBN outlines that fees on excess deposits are no longer applicable. Additionally, withdrawals exceeding the specified limits will incur fees of 3 percent for individuals and 5 percent for corporate customers. These fees will be divided between the CBN and the respective banks.

The CBN has also clarified that the daily withdrawal limit for Automated Teller Machines (ATM) is set at N100,000, with a maximum of N500,000 per week. Cash withdrawals from ATMs and point of sale devices contribute to the total weekly withdrawal limit. Furthermore, the limit for over-the-counter encashment of third-party cheques remains at N100,000, which will count towards the cumulative weekly withdrawal limit.

The circular notes that exemptions apply to certain accounts, including revenue-generating accounts of all levels of government and accounts of microfinance banks. However, previous exemptions for embassies, diplomatic missions, and aid-donor agencies are no longer valid.

The CBN aims to streamline its policies to reflect contemporary financial practices and encourage the adoption of electronic payment methods, which have become increasingly important in the evolving economic landscape.