Nigeria’s cash economy is set for a dramatic shift after the Central Bank of Nigeria announced the total removal of all cash-deposit limits while retaining strict withdrawal ceilings. The policy, outlined in a circular signed by Dr. Rita Sike, Director of Financial Policy and Regulation, takes effect January 1, 2026.
Under the new framework, customers can now deposit any amount at no extra cost as the apex bank has scrapped the long-standing charges for excess deposits. The CBN said the removal “reflects present-day realities” and aligns with a broader restructuring of Nigeria’s cash-management architecture.
But while deposits are now unrestricted, withdrawals remain tightly controlled. Individuals cannot exceed ₦500,000 weekly across all channels, and corporates are capped at ₦5 million. Withdrawals above these limits attract fees of 3% for individuals and 5% for corporates, shared between banks and the CBN. Special monthly approvals for larger withdrawals have also been abolished. ATM withdrawals remain capped at ₦100,000 per day.
The mixed policy has sparked renewed debate about Nigeria’s transition toward a cashless economy—especially as inflation and liquidity pressures remain acute. Analysts say freer deposits may ease compliance for businesses, but rigid withdrawal limits could continue to strain cash-dependent sectors.
ATM rules have also been relaxed, with all denominations now allowed in machines. Still, over-the-counter third-party cheque cashing remains restricted to ₦100,000 and will count towards weekly withdrawal totals. Banks must also create internal accounts to warehouse excess-withdrawal charges and file monthly reports with regulators.
Critics note that exemptions for diplomatic missions have been removed, signalling what many interpret as a push for uniform compliance. Exemptions remain only for government revenue accounts, microfinance banks and mortgage institutions.
The new circular supersedes 24 previous directives, marking one of the most sweeping resets of Nigeria’s cash policy in years. As the country prepares for implementation, concerns centre on whether businesses and households can adapt to limited physical cash access in a still largely informal economy.
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