The Central Bank of Nigeria, CBN, has introduced significant adjustments to its cash-handling regulations, unveiling new withdrawal limits while completely removing the long-standing deposit cap for bank customers nationwide.
The measures, announced through a fresh circular issued on December 2, 2025, mark one of the most sweeping updates to the country’s cash policy in recent years.
According to the circular signed by Dr. Rita I. Sike, Director of the Financial Policy and Regulation Department, the overhaul is aimed at addressing the high operational cost of circulating physical cash and tightening security around its movement.
The bank also highlighted the need to curb persistent money-laundering risks and encourage a gradual shift toward digital transactions, especially in an economy where cash remains heavily used for daily activities.
The apex bank explained that earlier policies were introduced during shifting economic cycles but had now become outdated.
As such, a realignment was necessary to ensure the regulatory framework reflects current realities and supports financial stability. One of the most notable changes is the complete removal of the cumulative cash deposit limit.
With this adjustment, banks will no longer charge customers additional fees for deposits that exceed previously defined thresholds, a move expected to improve liquidity and encourage more funds to flow into the formal banking system.
ALSO READ: Court sanctions CBN for stalling hearing in ex-workers’ suits
Alongside this shift, the CBN introduced a new set of weekly withdrawal ceilings. Individuals may now withdraw up to ₦500,000 per week across all platforms—including ATMs, POS terminals, and over-the-counter withdrawals.
Corporate account holders are allowed up to ₦5 million within the same period. Withdrawals that exceed these limits will attract excess cash fees: 3% for individuals and 5% for corporate entities.
These charges will be split between the Central Bank and the customer’s financial institution, with both parties sharing enforcement responsibilities.
Additionally, the CBN has discontinued the special withdrawal waivers that previously permitted individuals to access up to ₦5 million and businesses up to ₦10 million monthly without penalty.
These privileges, the bank noted, no longer align with its current vision for streamlined and efficient cash management.
The circular emphasised that the updated policies were crafted to reduce heavy reliance on cash, promote safer and more efficient electronic payment channels, and align the financial sector with global best practices.
Stakeholders expect the measures to have a considerable impact on banking behaviour, particularly among SMEs and cash-intensive sectors, as the regulatory landscape continues to evolve.
NAN
