The Central Bank of Nigeria has announced a comprehensive revision of its cash‑related policies, introducing new nationwide withdrawal limits and eliminating the cumulative deposit cap for bank customers. The changes, detailed in a circular signed by Dr. Rita I. Sike, Director of the Financial Policy and Regulation Department, on 2 December 2025, aim to reduce the rising cost of cash management, strengthen security around cash movement, and curb money‑laundering risks in an economy still heavily reliant on physical currency.
The overhaul responds to changing economic conditions; earlier cash policies were introduced to manage past circumstances, and the Central Bank now deems it necessary to adjust the rules to meet current realities. Under the revised framework, the cumulative cash deposit limit has been fully removed, and banks will no longer charge fees for deposits that exceed previously set thresholds. This is expected to encourage more deposits and expand liquidity within the financial system.
For withdrawals, individuals are limited to a cumulative weekly amount of ₦500,000 across all channels—including ATMs, POS terminals, and over‑the‑counter transactions. Corporate account holders may withdraw up to ₦5 million per week. Withdrawals above these limits will attract excess‑withdrawal fees of 3 % for individuals and 5 % for corporates, with the charges shared between the Central Bank and the financial institution. The Bank has also discontinued the special monthly cash‑withdrawal waivers of ₦5 million for individuals and ₦10 million for corporates, stating that such exemptions will no longer apply.
These revisions reflect the Central Bank’s effort to streamline cash management and promote the adoption of electronic payment channels. By removing the deposit cap and introducing new withdrawal limits, the Bank seeks to create a more efficient and secure payment system, reduce cash usage, and strengthen the country’s financial infrastructure. The implementation of these policies is expected to have a significant impact on the Nigerian economy, and their effectiveness will be closely monitored in the coming months.
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