CBN reforms cash management policies, maintains weekly withdrawal limits

*The Central Bank of Nigeria also maintains strict weekly cash withdrawal ceilings under a revised set of cash management policies in line with current ‘realities’, effective from January 1, 2026

Isola Moses | ConsumerConnect

Sequel to years of adjustments to cash-management policies in the economy, the Central Bank of Nigeria (CBN) has removed all cash-deposit limits for bank customers.

The CBN has also retained strict weekly cash withdrawal ceilings under a revised set of cash-related policies, effective from January 1, 2026.

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ConsumerConnect reports the CBN maintains that individuals will continue to face a ceiling of N500,000 across all channels, while corporates remain restricted to N5 million till this day.

Dr. Rita Sike, Director of Financial Policy and Regulation Department at CBN, disclosed these developments in a circular issued, signed, and communicated to Deposit Money Banks (DMBs) Tuesday, December 1, 2025,

The banking sector regulator said the new framework was introduced “to reflect present-day realities” after years of adjustments to cash-management rules.

Cancellation of excess deposit fees

The Bankers’ Bank stated that a major provision of the circular is the full abolition of the cumulative deposit limit.

The CBN also said: “The cumulative deposit limit is hereby removed and the fee for excess deposit shall no longer apply.”

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By implication, this decision signals an ending to the requirement for customers to pay charges when depositing cash above a set threshold.

Hitherto, withdrawals above these thresholds would attract fees of 3 percent for individuals and 5 percent for corporates.

The latest directive, however, marks a major step in Nigeria’s long-running push toward a cashless economy, following years of policy adjustments and enforcement challenges.

Underscoring overarching objective of the moves, the CBN said: “The measures aim to moderate the rising cost of cash management, address security concerns and reduce the potential for money laundering.”

In October, Nigeria and South Africa, sub-Saharan Africa’s two largest economies, were removed from the Paris-based Financial Action Task Force (FATF) list of countries subject to increased monitoring for illicit money flows.

Besides, special authorisations for large monthly withdrawals of 5 million Naira for individuals and 10 million naira for corporates have been scrapped, and exemptions for embassies and donor agencies removed.

It is recalled that the CBN, in 2019, had announced plans to start charging bank customers for cash deposits and withdrawals beginning September 19 of the year.

The CBN, in a circular at the time, explained the new transaction fees policy was aimed at reducing the amount of cash in circulation and enhancing the collection of government revenues.

The banking industry regulator as well explained the charges were initially applicable only to bank customers in Lagos, Ogun, Kano, Abia, Anambra, Rivers, and the Federal Capital Territory (FCT).

However, it indicated that by March 31, 2020, the implementation of the cashless policy would be expanded nationwide.

Still, in December 2023, the CBN issued a directive to Banks and Other Financial Institutions, and non-bank financial institutions, suspending the previously imposed processing charges on large cash deposits.

As the CBN removes limits on deposits, it has retained the cumulative weekly withdrawal limits.

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