CBN Implements Revised Cash-Related Policies Effective January 2026
The Central Bank of Nigeria (CBN) has issued comprehensive revisions to cash-related policies, effective January 1, 2026, targeting all deposit-taking financial institutions nationwide. The reforms aim to moderate rising cash management costs, address security concerns, and reduce money laundering risks associated with Nigeria’s heavy reliance on physical currency.
Key Policy Changes
The circular, referenced FPRD/DIR/PUB/CIR/001/011, introduces several significant modifications to existing cash transaction frameworks. Notably, the CBN has removed cumulative deposit limits and associated excess deposit fees, eliminating previous restrictions on deposit amounts.
However, the regulator has established strict weekly withdrawal limits: ₦500,000 for individuals and ₦5 million for corporate entities across all channels. These limits encompass ATM withdrawals, over-the-counter transactions, and point-of-sale cash-back services. The previous special authorization system permitting monthly withdrawals of ₦5 million for individuals and ₦10 million for corporates has been discontinued.
Fee Structure and ATM Regulations
Withdrawals exceeding prescribed limits will attract penalty fees of 3 percent for individuals and 5 percent for corporate customers on excess amounts. The collected fees will be shared 40 percent to the CBN and 60 percent to the processing financial institution. Additionally, ATM daily withdrawal limits are set at ₦100,000 per customer, subject to the overall weekly threshold.
In a liberalization move, all currency denominations may now be loaded into ATMs, enhancing customer convenience. The ₦100,000 limit on over-the-counter encashment of third-party cheques remains unchanged and counts toward cumulative weekly limits.
Compliance and Exemptions
Banks must submit monthly returns on cash transactions exceeding specified limits to three CBN supervisory departments: Banking Supervision, Other Financial Institutions Supervision, and Payments System Supervision. Deposit Money Banks must maintain separate internal ledgers for processing charges collected.
Certain accounts are exempt from weekly withdrawal limits and excess fees, including revenue-generating accounts of federal, state, and local governments, as well as accounts of microfinance banks and primary mortgage banks. Notably, the previous exemption for embassies, diplomatic missions, and aid-donor agencies has been revoked.
The reforms represent a strategic push toward digital payment channels while maintaining operational flexibility for legitimate business activities. Financial institutions have until January 1, 2026, to update systems, train personnel, and communicate changes to customers.
