The circular, titled “Revised Cash-Related Policies”, was signed by Dr. Rita Sike, Director of the Financial Policy & Regulation Department. The apex bank explained that the revisions are part of ongoing efforts to reduce the rising cost of cash management, address security risks, and curb money laundering linked to Nigeria’s heavy dependence on cash transactions.
“The cash-related policies previously issued were meant to promote electronic payments and reduce cash usage. But as the economy evolves, it became necessary to update these rules to reflect present-day realities,” the circular stated.
Key changes, effective January 1, 2026, include:
- Removal of cumulative deposit limits, meaning fees on excess deposits will no longer apply.
- Weekly withdrawal limits increased to N500,000 for individuals and N5 million for corporates across all channels, including POS and bank counters. Withdrawals above these thresholds will attract excess charges of 3% for individuals and 5% for corporates. The revenue is shared 40% to CBN, 60% to the bank.
- Special monthly authorizations allowing individuals to withdraw N5 million and corporates N10 million once a month have been abolished.
- For ATMs, daily withdrawal remains capped at N100,000 per customer, while weekly ATM withdrawals contribute toward the N500,000 cumulative weekly limit. Banks are also required to load all currency denominations in ATMs.
- Over-the-counter withdrawals of third-party cheques remain capped at N100,000, counted as part of the weekly limit.
Banks are further required to submit monthly returns to the Banking Supervision Department, Other Financial Institutions Supervision Department, and Payments System Supervision Department.
The CBN clarified that revenue-generating accounts of federal, state, and local governments, as well as accounts of microfinance banks and primary mortgage banks, are exempt from the new withdrawal and excess-fee rules. However, the previous exemption for embassies, diplomatic missions, and aid-donor agencies has been removed.
The CBN said the policy changes aim to balance the adoption of electronic payment systems with practical access to cash for individuals and businesses across Nigeria.
