CBN EASES CASH RULES, RAISES WITHDRAWAL LIMITS TO BOOST LIQUIDITY

CBN EASES CASH RULES, RAISES WITHDRAWAL LIMITS TO BOOST LIQUIDITY

The Central Bank of Nigeria has unveiled a major policy overhaul that will take effect from January 1, 2026, introducing higher cash withdrawal limits and scrapping all restrictions on cash deposits across the banking system.

The circular, signed by Dr. Rita I. Sike, Director of Financial Policy and Regulation, marks one of the most significant adjustments to Nigeria’s cash-management framework since the 2022 naira redesign.

Under the new guidelines, individuals can now withdraw up to ₦500,000 weekly, a sharp rise from the former ₦100,000 limit. Corporate organisations have been granted a new ceiling of ₦5 million weekly, up from ₦500,000. These limits apply across ATMs, PoS terminals, and over-the-counter transactions.

In a decisive shift, the CBN has completely removed all caps on cash deposits, eliminating previous processing fees that banks charged on deposits exceeding stipulated thresholds.

Below is a summary of the revised framework:

Key Changes Effective January 1, 2026
• Individuals’ weekly withdrawal limit: ₦500,000
• Corporate weekly withdrawal limit: ₦5 million
• Daily ATM withdrawal: Up to ₦100,000 (included in weekly limit)
• Cash deposits: No limit, no fees
• Third-party cheques: Still capped at ₦100,000
• Charges on excess withdrawals: 3 percent for individuals; 5 percent for corporates
• Special authorisation for large withdrawals: Discontinued
• ATM loading: All denominations now allowed

The apex bank explained that the policy review is intended to respond to rising inflation pressures, tight liquidity conditions, and the need to ease cash-flow constraints facing households and businesses.

While easing the limits, the CBN noted that it remains committed to reducing excessive cash usage in the long term. Banks are now mandated to file monthly compliance reports covering withdrawals above the new limits and trends in deposit activity.

The new regime is expected to bring relief to traders, SMEs, and rural communities previously constrained by the strict weekly caps introduced in the aftermath of the naira redesign.