The Central Bank of Nigeria (CBN) has introduced new charges on cash withdrawals while removing previous limits on cash deposits, marking a significant shift in the country’s cash management framework.
Under the revised policy, individuals are now allowed to withdraw up to ₦500,000 per week, while corporate entities can withdraw up to ₦5 million per week across all channels, including over-the-counter transactions, automated teller machines (ATMs) and point-of-sale (POS) terminals. Withdrawals above these thresholds will attract charges of 3 per cent for individuals and 5 per cent for corporates on the excess amount.
At the same time, the apex bank has scrapped the cash deposit cap, meaning customers can deposit unlimited amounts of cash without incurring deposit-related charges. This represents a reversal of the earlier policy that placed limits and penalties on large cash deposits.
The CBN clarified that the new charges are not taxes but regulatory penalties aimed at discouraging excessive cash usage and encouraging electronic payment channels. According to the bank, the policy is designed to reduce the high cost of cash management, improve financial transparency, and curb security and money-laundering risks associated with heavy cash circulation.
The CBN also discontinued the previous special approval window that allowed higher monthly cash withdrawals, stating that the new framework would apply uniformly to all customers, except for a few exempted institutions such as government revenue accounts and certain financial institutions.
While normal withdrawals within the approved limits remain free, analysts note that the new charges could increase operating costs for cash-intensive businesses and individuals who rely heavily on physical cash transactions.