On 3 December 2025, the Central Bank of Nigeria announced a major revision of its cash policy: it has scrapped the limit on cash deposits and raised the weekly cash-withdrawal limit for individuals from ₦100,000 to ₦500,000. For corporate entities, the new weekly limit is ₦5,000,000 under the revised framework.
The move, enshrined in a circular signed by Dr. Rita Sike, Director of the Financial Policy & Regulation Department, aims to reduce the cost and hassle of managing cash, boost security, and streamline Nigeria’s cash-handling regime.
✅ What’s new — The key changes
- No more deposit limits or deposit fees: Individuals and businesses can now deposit any amount of cash without being constrained by previous ceilings or facing deposit‐related fees.
- Higher weekly withdrawal limits: Individuals can now withdraw up to ₦500,000 per week (up from ₦100,000). Corporates have a ceiling of ₦5 million per week.
- ATM and channel-wide caps maintained: ATM withdrawals are capped at ₦100,000 per day, but still count toward the weekly limit of ₦500,000. All withdrawal channels (bank counter, ATM, POS, etc.) now feed into the same weekly withdrawal cap.
- Excess withdrawal fees for amounts over the cap: Any withdrawal exceeding the weekly limit may attract a processing fee — 3% for individuals, and 5% for corporate customers.
🌍 Why this change matters
- Greater flexibility for savers and businesses: Removing deposit limits removes a major friction point — allowing Nigerians to deposit larger sums when needed, without worrying about thresholds or penalties. For small businesses, traders, and others dealing with irregular cash inflows, this offers much-needed flexibility.
- Easing cash flow constraints: The previous low withdrawal ceilings were a pain point for many, especially those who rely on cash for daily transactions (informal sector workers, traders, markets, transport operators, etc.). The higher withdrawal limit could help ease liquidity constraints and support smoother economic activity.
- Reducing informal cash hoarding and improving security: With fewer restrictions on depositing and withdrawing cash, there may be less incentive to hoard cash outside banks — a practice often associated with security risks, informal money markets, and untraceable flows. The change can thus contribute to improved financial system transparency and safety.
- Sign of policy responsiveness: The new policy reflects that the CBN is responsive to public concerns and real-world economic realities. It may also signal a recalibration away from stringent cash-control toward more pragmatic regulation, especially as Nigeria continues its broader push toward financial inclusion and improved banking access.
⚠️ What to watch out for — Risks and caveats
- Weekly cap still constrains large cash needs: For individuals or businesses needing more than ₦500,000 per week (e.g. bulk purchase of goods, large payments), the new limit may still feel restricting, especially if repeated over multiple weeks.
- Fees for excess withdrawals: The 3% (individual) / 5% (corporate) surcharge on withdrawals beyond the cap might discourage some from using the policy when they need larger amounts — or push them into informal or less-regulated channels.
- No guarantee of cash availability: Even with relaxed rules, many Nigerians still face the practical problem of limited cash availability at banks or ATMs, especially outside major urban centers. The policy alone won’t fix cash-supply issues or ATM-stocking constraints.
- Push toward digitisation continues: Although this may ease cash access, it doesn’t necessarily reverse the longer-term trend of promoting electronic payments. Those heavily dependent on cash may still face pressures to adapt to digital banking or mobile money over time.
🧭 My take — A pragmatic step, but not a silver bullet
The new policy by the CBN appears to strike a sensible balance between flexibility and regulation. By removing deposit limits and raising withdrawal ceilings, it addresses real pain points many Nigerians — especially traders, SMEs, and informal-sector workers — have suffered under past restrictions. It also underscores pragmatism: the CBN seems to acknowledge that cash remains central to many Nigerians’ economic lives, and that rigid caps can hamper daily commerce.
However, while laudable, this change is not a cure-all. The weekly withdrawal cap and fees for excess withdrawals mean that many structural issues remain — such as liquidity shortages, informal-economy reliance, and cash-flow volatility. For the average Nigerian, success will depend on whether banks consistently stock ATMs, enforce the new policy fairly, and maintain transparency.
All the same, the move should be welcomed as a positive policy shift — a step toward adapting banking regulations more realistically to the needs of ordinary citizens and businesses.
📄 References
- “CBN removes limit on cash deposit, raises weekly withdrawal limit” — Vanguard Nigeria Vanguard News
- “CBN removes cash deposit limit, raises weekly withdrawal to N500,000” — The Gazette Nigeria Peoples Gazette Nigeria
- “CBN removes cash deposit limits, increases withdrawal thresholds” — Lagos Television Lagos Television
- “CBN Abolishes Cash Deposit Limits, Increases Weekly Withdrawal Threshold to N500,000 for Individuals” — ThisDayLive ThisDayLive
- “CBN introduces new nationwide cash-withdrawal limits” — People & Power report summarizing the circular People & Power+1
- “CBN Announces 4 New Cash Withdrawal, Deposit Rules, ATM Limit Now ₦100,000 Daily” — Legit.ng business-economy report
