The Central Bank of Nigeria removes all restrictions on cash deposits. This move reverses tight measures from the previous administration. Nigerians can now deposit any amount without limits or fees.
Key Policy Changes
First the CBN scraps cumulative deposit limits for individuals and companies. Banks do not charge fees on large deposits anymore. In addition, weekly withdrawal limits increase significantly. Individuals can now withdraw up to N500,000 per week across all channels. Corporates gain a N5 million cap per week.
Moreover ATM withdrawals stay at N100,000 daily but align with the new weekly limits. The bank abolishes special monthly high value withdrawals. However excess withdrawals attract charges. Individuals pay 3%, while corporations pay 5%.
Reasons for the Shift
The CBN aims to cut cash management costs. Security concerns also drive this change. Furthermore the policy curbs money laundering risks. Previous rules promoted electronic payments but faced criticism. Now, the bank adapts to current needs.
The changes take effect on January 1, 2026. Banks must load all note denominations in ATMs. They also submit monthly reports to supervisors.
Implementation Guidelines for Banks
Banks must prepare for the changes promptly. They load ATMs with all naira denominations. This ensures easy access for customers. Supervisors require monthly reports from banks. These track compliance and cash flows. The CBN monitors the system closely.
Training staff becomes essential. Banks educate employees on new procedures. This prevents errors during the transition.
Impacts on Nigerians
This reversal facilitates day-to-day transactions of the common people. Businesses enjoy fewer restrictions. However it retains some controls to ensure safety. The balanced cash system is facilitated by this policy.
In conclusion, the CBN’s decision marks progress. It responds to public feedback and economic realities.
