The Central Bank of Nigeria has announced a comprehensive revision of its cash-related policies, introducing new nationwide withdrawal limits and scrapping the cumulative deposit cap for bank customers. The revision, outlined in a circular signed by the Director of Financial Policy and Regulation Department, Dr. Rita I. Sike, on December 2nd, 2025, aims to reduce the rising cost of cash management, strengthen security around cash movement, and curb money laundering risks in Nigeria’s economy, which remains heavily reliant on physical currency.
The policy overhaul is a response to changing economic conditions, with the earlier cash policies having been introduced to manage these conditions. The Central Bank of Nigeria has now deemed it necessary to adjust these rules to meet current realities. As part of the revised framework, the cumulative cash deposit limit has been fully removed, and banks will no longer charge customers fees for deposits exceeding previously set thresholds. This move is expected to encourage more deposits and expand liquidity within the financial system.
Under the revised framework, individuals are limited to a cumulative weekly withdrawal of ₦500,000 across all channels, including ATMs, POS terminals, and over-the-counter transactions. Corporate account holders, on the other hand, 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 to be shared between the Central Bank of Nigeria and the financial institution.
The Central Bank of Nigeria 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. The revision of these policies reflects the Central Bank’s efforts to streamline cash management and encourage the adoption of electronic payment channels. With the removal of the cumulative deposit cap and the introduction of new withdrawal limits, the Central Bank of Nigeria aims to promote a more efficient and secure payment system.
The significance of this policy revision lies in its potential to reduce cash usage and promote the adoption of electronic payment channels, thereby strengthening the country’s financial system. As the Central Bank of Nigeria continues to navigate the challenges of cash management, this revision marks an important step towards creating a more secure and efficient payment environment. The implementation of these new policies is expected to have a significant impact on the Nigerian economy, and their effectiveness will be closely monitored in the coming months.
