The Central Bank of Nigeria (CBN), has announced a reversal in its cash policies issued about a year ago.
This was contained in a Circular Number: FPRD/DIR/PUB/CIR/001/01, dated December 2, 2025 issued to all banks, other financial institutions and the general public, signed by the Director, Financial Policy and Regulation Department, Dr Rita Sike.
The apex bank, in the Circular explained that the revised cash-related policies, which are for mandatory compliance by all deposit-taking financial institutions in Nigeria, shall apply nationwide effectiveJanuary 1, 2026.
CBN further explained that the earlier Circular was issued to moderate the rising cost of cash management, address security concerns, and reduce the potential for money laundering associated with the economy’s heavy reliance on cash.
It added the Circular, which was also issued in response to evolving circumstances in cash management, sought to reduce cash usage and encourage accelerated adoption of other payment options, particularly electronic payment channels.
It however, stated that with the effluxion of time, the need has arisen to streamline the provisions of these policies to reflect present-day realities.
Consequently, it said the cumulative depositlimit is hereby removed and the fee for excess deposit shall no longer apply.
CBN said the cumulative weekly withdrawal limit across all channels shall be N500,000 for individuals and N5 million for corporates. Adding that cumulative weekly withdrawals above these limits shall attract excess withdrawal fees.
The apex bank also announced that the special authorisation for withdrawal of N5 million and 10 million once monthly by individuals and corporates, respectively, shall no longer apply.
It said the Automated Teller Machine (ATM) withdrawal limit shall be N100,000 daily (per customer), subject to a maximum of N500,000 weekly. Adding that ATMs and point of sale devices are part of the weekly withdrawal limit.
CBN, however, clarified that excess cash withdrawals above the levels indicated above shall attract fees of 3 percent and 5 percent to individual and corporate customers, respectively, on the excess amount withdrawn.
It explicated that the fee shall be shared 40 percent to the CBN and 60 percent to the bank or financial institution.
On denominations to be loaded in ATMs, CBN said all currency denominations may be loaded in ATMs.
It stated that the limit on over-the-counter encashment of 3rd party cheques is retained at N100,000. Informing Account holders that any withdrawal under this section would form part of the cumulative weekly stated above.
CBN said the Reporting Banks shall render thefollowing monthly returns (in a format to be advised) to the respectivesupervisory departments (Banking Supervision Department, Other FinancialInstitutions Supervision Department and Payments System Supervision Department) as applicable: a. Returns on cash withdrawal transactions above the specifiedlimit; b. Returns on Cash.
Clarifying on Deposits’ Internal Ledger forCharges, it said Deposit Money Banks (DMBs) shall create separate accounts toware house processing charges collected on cash withdrawals above the limits.
On exemptions, it said “the following accounts/entities are exempted from the application of sections 2 and 5 of this circular: i. Revenue generating accountsof federal, state, and local governments; and ii. Accounts of microfinance banks and primary mortgage banks with commercial and non-interest banks.”
It also stated that the exemption of embassies, diplomatic missions and aid-donor agencies from specific cash policies shall no longer apply.
CBN said the circular is without prejudice to the provisions of the circulars listed in Appendix 1, and supersedes the provisions of the circulars in Appendix 2.
