Nigeria’s cash policy landscape is shifting again as the Central Bank of Nigeria today announced a major review of its cash-handling rules, removing limits on cash deposits and increasing the weekly withdrawal threshold to N500,000 for individuals, marking a significant jump from the former N100,000 ceiling.
The update was contained in a circular issued to banks with the reference “Revised Cash-Related Policies” and signed by the Director of Financial Policy and Regulation, Dr. Rita Sike. The apex bank explained that this move aligns with ongoing efforts to ease the burden of cash management, reduce security risks linked to physical cash movement, and discourage laundering concerns, while also rebalancing earlier policies designed to drive electronic payments.
Over time, it became necessary to update the rules to reflect the realities of commercial activities and public feedback.
The new policy takes effect from January 1, 2026, introducing changes that will immediately alter how individuals and businesses handle cash. The removal of the cumulative deposit limit eliminates the charges previously applied on excess deposits, which many traders and small businesses had described as burdensome to their operations.
With higher operational costs and limited digital adoption across rural areas, the previous restrictions often slowed trade activities, particularly for micro and small business owners who rely heavily on cash circulation for inventory purchases and daily transactions. The raised withdrawal allowance will allow a weekly limit of N500,000 for individuals and N5 million for corporate bodies across all banking channels, including ATMs and POS agents.
However, withdrawals exceeding the approved threshold will attract charges set at 3 per cent for individuals and 5 per cent for organisations, shared 40 per cent to the CBN and 60 per cent to the operating bank. The special one-time monthly withdrawal window of N5 million for individuals and N10 million for companies has now been discontinued entirely.
The daily ATM withdrawal remains officially capped at N100,000, with customers only able to withdraw N500,000 weekly through the machine network, forming part of the overall weekly limit applied across every channel. Banks are also to load ATMs with all currency denominations, a move expected to improve cash access for petty traders and informal sector operators who often struggle with scarcity of lower notes during market sales.
In addition, the over-the-counter cash encashment limit on third-party cheques stays at N100,000 and must be recorded as part of the weekly total allowed for withdrawals. The apex bank directed commercial banks to submit monthly compliance reports to the Banking Supervision Department, the Payments System Supervision Department, and the Other Financial Institutions Supervision Department to ensure transparency and monitoring of how the revised rules are implemented.
Certain government-linked accounts will not be affected by excess withdrawal charges, particularly revenue accounts of federal, state, and local governments, including those belonging to microfinance and primary mortgage banks.
In contrast, embassies, donor agencies, and diplomatic missions will no longer enjoy withdrawal exemptions under the revised guidelines. This change signals a broader tightening of cash oversight in public and institutional transactions as Nigeria seeks to deepen financial transparency.
For MSMEs, market traders, and cash-dependent entrepreneurs, the review stands as a partial relief while still preserving the CBN’s push towards a less cash-heavy economy.
The upward review gives businesses more room to operate without constant penalties, although the enforcement of charges beyond set limits may still push more enterprises to adopt digital channels over time. The coming months will likely shape how banks respond, how easily businesses adjust, and whether the revised policy successfully balances financial access with regulatory control across the country.
