The Central Bank of Nigeria, CBN, has unveiled significant changes to its cash management policies, including new nationwide withdrawal limits and the removal of the deposit cap for bank customers.

 

In a circular issued on December 2, 2025, and signed by Rita I. Sike, Director of the Financial Policy & Regulation Department, the CBN explained that these adjustments were necessary to address the rising costs of cash management, enhance security around cash transactions, and combat money laundering in an economy still largely reliant on physical currency.

 

Key changes includes, Withdrawal Limits; Individuals will now be limited to ₦500,000 per week in cumulative withdrawals, Corporate account holders can withdraw up to ₦5 million per week across all channels, including ATMs, Point-of-Sale (POS) terminals, and over-the-counter transactions, Withdrawals exceeding these limits will incur a fee, Individuals: A 3% fee on the excess amount, Corporates: A 5% fee on the excess amount. The fees will be split between the CBN (40%) and the financial institution (60%).

 

The CBN has also removed the cumulative cash deposit cap, meaning banks will no longer impose fees on deposits that exceed previously set thresholds. This change aims to encourage more deposits and boost liquidity in the financial system.

The CBN has ended special monthly cash withdrawal waivers that allowed individuals to withdraw up to ₦5 million and corporates up to ₦10 million without penalties.

 

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The CBN noted that earlier cash policies were introduced to manage evolving economic conditions, but with the current state of the economy, it was time to revise these rules. The removal of deposit caps and the imposition of withdrawal limits are part of the bank’s ongoing efforts to reduce cash dependency, enhance digital payments, and ensure more efficient cash flow management.

“These policy adjustments are designed to address current economic realities, streamline cash management, and encourage the adoption of alternative payment systems,” the CBN stated.

 

The new policies signal a shift towards more controlled cash usage, encouraging individuals and businesses to make greater use of digital payments. With the removal of the deposit cap, there may be increased opportunities for individuals and businesses to manage larger sums of money more freely. However, those who exceed the new withdrawal limits will face additional costs, making it crucial for account holders to plan their cash needs accordingly.

 

Source: Punch