The Central Bank of Nigeria (CBN) has implemented a sweeping overhaul of its cash management framework, capping weekly withdrawals across all banking channels while simultaneously removing all previous cumulative limits and fees associated with cash deposits.
This dual-pronged policy shift, aimed at streamlining operations and boosting liquidity, takes immediate effect nationwide.
The comprehensive revision was formally communicated in a circular dated December 2nd, 2025, and signed by the Director of the Financial Policy & Regulation Department, Dr. Rita I. Sike.
The apex bank stated that the overhaul was necessary to address three critical objectives: reducing the rising operational cost of cash management, strengthening the security protocols around cash movement, and curbing the prevalent risks associated with money laundering within an economy still heavily dependent on physical cash.
The CBN explained its rationale for the timing of the adjustments, noting that earlier cash policies were introduced to manage evolving economic conditions. The bank stated that the time had come to adjust those rules to meet current realities. The CBN provided clarity on its overall strategic intent:
“These policies, issued over the years in response to evolving circumstances in cash management, sought to reduce cash usage and encourage accelerated adoption of other payment options, particularly electronic payment channels. With the effluxion of time, the need has arisen to streamline the provisions of these policies to reflect present-day realities,” the CBN said.
In a move widely expected to be welcomed by both commercial banks and high-volume traders, the CBN has entirely removed the cumulative cash deposit limit. This means banks will no longer charge customers fees for deposits exceeding previously set thresholds. This deregulation of deposits is specifically designed to encourage citizens to place more funds into the banking system, thereby expanding liquidity and increasing the financial system’s capacity to support economic activities.
While deposits are now unrestricted, the apex bank has tightened control over cash withdrawals by setting firm weekly limits for both individuals and corporate entities across all transaction points (Automated Teller Machines, Point-of-Sale terminals, and over-the-counter transactions).
Under the revised framework:
Individuals are now limited to a cumulative weekly withdrawal of ₦500,000.
Corporate Account Holders may withdraw up to ₦5 million per week.
The CBN has also discontinued all special exemptions previously granted, specifically the monthly cash withdrawal waivers of ₦5 million for individuals and ₦10 million for corporates, stating that such exemptions will no longer apply.
Withdrawals that exceed the newly introduced weekly limits will now attract significant excess withdrawal fees, structured as follows:
Individuals: 3% excess withdrawal fee.
Corporates: 5% excess withdrawal fee.
The revenue generated from these penalties will be shared between the CBN (40%) and the financial institution (60%), establishing a clear financial incentive for both the regulator and the banks to enforce the new ceiling aggressively.
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