The Central Bank of Nigeria (CBN) has issued a major policy circular, effective immediately, that ends the previous, temporary limits on cash deposits while simultaneously announcing new, streamlined weekly cash withdrawal limits set to take effect from January 1, 2026.
This move, signed by the Director of Financial Policy and Regulation, is designed to formally unify the various cash-limit policies introduced over the last few years, pushing Nigeria further toward a truly cashless economy while curbing money laundering.
The new CBN directive focuses on clarity, compliance, and eliminating special exceptions:
| Policy Area | Previous Rule (2023/2024) | NEW Rule (Effective Jan. 1, 2026) | Impact |
| Cash Deposit Limits | Suspended the charging of processing fees on deposits above ₦500k (Ind.) / ₦3m (Corp.). | No new deposit limits imposed. Banks must accept cash deposits without charging a fee (reflecting the prior suspension). | Ends confusion and encourages cash lodgement into the banking system. |
| Weekly Cash Withdrawal | ₦500,000 (Ind.) / ₦5,000,000 (Corp.) | ₦500,000 (Ind.) / ₦5,000,000 (Corp.) | Limits remain the same. The focus is on enforcement and eliminating exceptions. |
| Special Monthly Waivers | Allowed one-time monthly withdrawals up to ₦5 million (Ind.) / ₦10 million (Corp.) for ‘compelling’ purposes. | ENDS Special Authorization. Withdrawals above the weekly limits are now simply subject to 3% (Ind.) and 5% (Corp.) charges and regulatory reporting. | Eliminates discretion and closes a major loophole that criminals could exploit for large cash movement. |
| ATM Withdrawal | ₦100,000 weekly, ₦20,000 daily. | ₦500,000 weekly, ₦100,000 daily. (Counts towards the overall weekly limit.) | Increases daily ATM access significantly but maintains the weekly cap. |
The CBN stated the revisions are necessary to streamline policy and enhance security. The move is also aimed at reducing the high costs associated with managing physical cash, including printing, processing, and transportation.
Thus, eliminating the high ₦5m and ₦10m monthly waivers, the CBN removes the single biggest legal channel for money launderers to extract massive sums of cash from the banking system without regulatory red flags.
The updated rules consolidate the commitment to electronic payments by making the withdrawal of large cash sums administratively easier (no special approvals) but financially punitive (via the mandatory processing fees).
The new limits do not apply to revenue-generating accounts of federal, state, and local governments, nor to Microfinance Banks (MFBs) and Primary Mortgage Banks (PMBs).
However, exemptions previously granted to embassies, diplomatic missions, and donor agencies have been withdrawn, meaning they are now fully subject to the ₦5 million corporate weekly limit.
This policy marks the administration’s most decisive step yet in removing the legal loopholes that complicated the enforcement of the cashless policy.
