Key Points
- CBN removes all limits on cash deposits across Nigerian banks. Weekly cash withdrawal cap rises to five hundred thousand naira.
- Firms now access up to five million naira each week. Extra cash above the limit attracts fresh but clear service charges.
- Banks must track big withdrawals and keep ATMs well supplied. Some official accounts stay exempt while embassies now follow normal rules.
The Central Bank of Nigeria has scrapped cash deposit limits. It also raises weekly cash withdrawals for people to ₦500,000. Fresh rules appear in a new circular on cash policy.
The old rule set a ₦100,000 weekly withdrawal cap for people. New limits now reach ₦500,000 for people and ₦5 million for firms. The change sits beside our CBN fintech oversight fails report on money rules.
A CBN circular titled Revised Cash Related Policies explains the new move. Dr Rita Sike signs the note as head of policy rules. It ends old total deposit caps and all fees on extra cash.
What the new cash rules change
CBN says the review will cut the high cost of cash. It also wants less robbery risk as cash moves around. The bank still hopes to grow card and transfer use.
The apex bank warns huge cash use can hide dirty funds. Past rules tried to push people toward bank transfers and cards. It now says new facts mean a softer cash policy.
People who pass the new cash caps must pay fresh fees. The charge is three percent for people and five percent for firms. Each fee sends forty percent to CBN and sixty to banks, and this move lands as our Nigeria debt rises DMO report shows pressure.
Daily ATM withdrawals stay fixed at ₦100,000 for each bank user. That cash now counts toward the ₦500,000 weekly limit, including POS withdrawals. Old special approval for huge monthly cash pulls also ends today.
For many cash based traders the higher room offers real relief. They can now meet big deals without several bank trips. Still, the extra fees should push people to plan withdrawals.
How banks must apply the policy
Banks must still load all note sizes in their ATMs. They also have to keep strict logs and send monthly reports. Third party cheques over ₦100,000 remain barred from across the counter.
Lenders must watch big cash moves to spot risky patterns early. They need strong checks on staff who handle large bundles. CBN expects clean records that show who collects big sums.
Revenue accounts for federal, state, and local bodies stay exempt. Microfinance banks and primary mortgage banks also keep that free pass. These groups can still move cash without the new caps.
Embassies and aid groups now lose the old special waiver. They must follow the same withdrawal rules as private firms. Banks will treat those accounts like any other large client.
Each bank has to update apps, forms, and teller guides. Staff will need short training on the fresh limits and fees. Customers should see clear signs on branch walls and digital screens.
Reactions and what to watch next
Analysts say the bank walks a tight line on cash growth. Too much cash may slow digital use over time. Very tight caps can also squeeze trade and daily sales.
Small shop owners say the review meets them halfway on needs. They welcome room for bulk cash buys from markets and depots. Many still fear long queues if banks struggle with cash supply.
Some experts think higher limits may lift cash hoarding in cities. Others believe clear fees on extra use will curb that risk. They say firm checks, not only caps, keep crime in check.
The new rules begin on 1 January 2026 across Nigeria. CBN expects banks to adjust systems and brief customers before then. Cash users now have weeks to plan how they will adapt.
In the end the bank wants less chaos around cash use. Clear limits, simple fees, and fewer waivers aim to help that goal. How well banks enforce the rules will decide if it works.
