THE Central Bank of Nigeria (CBN) has lifted the limit on cash deposits and increased the weekly cash withdrawal limit across all channels to N500,000, up from the previous N100,000.

The centrak bank disclosed the changes in a circular to all banks entitled, ‘Revised Cash-Related Policies,” which was signed by Dr. Rita Sike, Director of Financial Policy & Regulation Department, the CBN.

According to the apex bank, the revisions aim to reduce the rising cost of cash management, address security risks, and curb money laundering associated with Nigeria’s high reliance on cash. The bank noted that earlier cash-related policies were intended to lower cash usage and encourage electronic payments, but evolving circumstances made it necessary to update and streamline the rules.

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Effective January 1, 2026, the circular introduces several key changes. The cumulative deposit limit has been removed, and fees previously applied to excess deposits will no longer apply.

The weekly withdrawal limit across all channels has been revised to N500,000 for individuals and N5 million for corporates. Withdrawals beyond these thresholds will incur excess withdrawal fees as outlined in the circular. The special monthly authorisation allowing individuals to withdraw N5 million and corporates N10 million once a month has also been abolished.

For ATMs, the daily withdrawal limit remains N100,000 per customer, with a maximum of N500,000 weekly, forming part of the overall weekly withdrawal limit applicable to all channels, including POS transactions.

Excess withdrawals above the set limits will attract fees of 3 percent for individuals and 5 percent for corporates, shared between 40 percent to the CBN and 60 percent to the operating bank or financial institution. Banks have also been instructed to load all currency denominations into ATMs. Over-the-counter encashment of third-party cheques remains capped at N100,000 and will count toward the cumulative weekly limit.

Additionally, banks must submit monthly returns to relevant supervisory departments, including the Banking Supervision Department, Other Financial Institutions Supervision Department, and Payments System Supervision Department.

The CBN clarified that revenue accounts of federal, state, and local governments, as well as accounts of microfinance and primary mortgage banks held with commercial and non-interest banks, are exempt from the new withdrawal and excess-fee rules. However, exemptions previously granted to embassies, diplomatic missions, and aid-donor agencies have been removed.

2026 prospects

CBN governor, Mr Olayemi Cardoso, had last week said he would ensure that the apex bank continued to focus on protecting the stability of the banking sector through rigorous supervision in 2026, while ensuring stronger governance across the board.

Speaking at the Bankers’ Dinner organised by the Chartered Institute of Bankers of Nigeria (CIBN) in Lagos on Friday, Mr Cardoso said he would pay attention to measures that could support sustainable credit growth, strengthen the banking system, protect depositors, deepen financial stability, modernise payments, and reinforce Nigeria’s economic resilience.

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He noted that protecting depositors remained non-negotiable in 2026, reaffirming the CBN’s commitment to delivering ‘durable price stability.’ He said the inflation-targeting framework would be strengthened with advanced analytics to better anchor expectations and lower inflation sustainably. He said that the bank would accelerate payments modernisation and expand financial inclusion by upgrading digital rails and scaling contactless payments across the economy.

He noted that the CBN was boosting internal capacity through staff training, process reform, and the removal of licensing bottlenecks to ensure a more agile institution. He vowed that the banking regulator would deepen collaboration with domestic regulators, industry stakeholders, and international partners to strengthen CBN as a credible and trusted central bank.

Cardoso reiterated that monetary policy would remain disciplined and firmly anchored on price stability, stressing that resources would be efficiently allocated and purchasing power protected when investments thrived.

He added that the CBN would enhance stakeholder engagement, reinforce collaboration with global regulators, provide consistent forward guidance, protect market integrity, and deploy technology and artificial intelligence to improve decision-making.