• Nigeria lifts cash-deposit cap but keeps strict withdrawal limits with fees
  
• Banks face new reporting rules as CBN targets security, cost cuts and compliance
  
• Measures follow FATF delisting amid inflation, reforms and slow digital-payment uptake

Nigeria’s central bank announced a series of measures on Tuesday aimed at cutting cash-handling costs, improving security and reducing money-laundering risks in an economy that still relies heavily on cash.

A Dec. 2, 2025 circular detailed the plan, mainly removing the cumulative cap on cash deposits. No fees will apply to deposits above any threshold. Weekly withdrawal limits remain set at 500,000 naira (about $345) for individuals and 5 million naira for companies, with processing fees charged on any amount above these ceilings.

In addition, special monthly cash withdrawals of 5 million naira for individuals and 10 million naira for companies will no longer be allowed. ATM withdrawals are capped at 100,000 naira per day per customer and 500,000 naira per week.

Banks must submit detailed monthly reports on withdrawals and deposits that exceed the limits and open separate accounts to record all processing fees charged on excess withdrawals.

The measures follow Nigeria’s removal from the Financial Action Task Force’s “grey list” last October after what the watchdog described as significant progress in implementing structural reforms. The EFCC said in March it had seized nearly $500 million in corruption-linked funds in 2024, a record sum.

To expand digital payments, promote financial inclusion and reduce cash circulation, the central bank launched the e-naira in 2021. Still, cash transactions accounted for 85% of currency in circulation in 2022.

After taking office, President Bola Tinubu introduced economic reforms to strengthen the economy. These contributed to a surge in inflation, which hit 34.19% in June 2024, a 28-year high. To ease inflationary pressures, the central bank has repeatedly raised interest rates to limit liquidity.

The new cash measures take effect on Jan. 1, 2026.

Lydie Mobio