### CBN's Major Policy Shift: Cash Deposit Limits Abolished and Withdrawal Threshold Raised The Central Bank of Nigeria (CBN) has announced a significant overhaul of its cash management policies, effective January 1, 2026. This new policy removes all limits on cash deposits and raises the weekly cash withdrawal limit for individuals to N500,000, a substantial increase from the previous cap of N100,000. The changes were communicated through a circular titled "Revised Cash-Related Policies," signed by Dr. Rita Sike, Director of the Financial Policy & Regulation Department. This move is seen as a response to the evolving financial landscape in Nigeria and aims to facilitate greater financial freedom for individuals and businesses alike [https://gentechnews.com.ng/cbn-scraps-cash-deposit-limits-raises-weekly-withdrawal-threshold-2]. ### Breakdown of the New Cash Policy 1. **Removal of Cash Deposit Limits**: - The CBN has eliminated all restrictions on cash deposits, allowing individuals and corporate entities to deposit any amount without penalties [https://dailypost.ng/2025/12/03/cbn-scraps-deposit-limits-increases-weekly-withdrawal-threshold]. 2. **Increased Weekly Withdrawal Limits**: - The weekly cash withdrawal limit for individuals has been raised to N500,000, while corporate entities can withdraw up to N5 million weekly [https://gentechnews.com.ng/cbns-new-cash-policy-a-welcome-liberalisation-or-a-risky-retreat]. 3. **Implementation Timeline**: - These changes will take effect from January 1, 2026, marking a significant shift in the CBN's approach to cash management [https://techpoint.africa/news/cbn-deposit-and-withdrawal-policy]. 4. **Rationale Behind the Changes**: - The CBN states that these modifications are necessary to "streamline provisions to reflect present-day realities," indicating a shift towards a more liberalized financial environment [https://naijaonpoint.com.ng/cbns-new-cash-policy-a-welcome-liberalisation-or-a-risky-retreat]. ### Supporting Evidence and Data - **Withdrawal Limits**: - **Individuals**: Increased from N100,000 to **N500,000** weekly. - **Corporates**: Increased from N5 million to **N5 million** weekly. - **Deposit Policy**: - All previous limits on cash deposits have been abolished, allowing for unrestricted cash deposits [https://dmarketforces.com/cbn-removes-cash-deposit-limits-raises-withdrawal-threshold]. ### Conclusion: Implications of the CBN's Policy Changes The CBN's decision to scrap cash deposit limits and raise withdrawal thresholds represents a pivotal moment in Nigeria's financial landscape. 1. **Enhanced Financial Flexibility**: - Individuals and businesses will benefit from increased liquidity and flexibility in managing their finances. 2. **Potential Risks**: - While the policy aims to liberalize the economy, it may also raise concerns regarding money laundering and financial security, necessitating robust monitoring mechanisms [https://thenews-chronicle.com/cbns-updated-cash-limits-stir-debate-across-nigerias-financial-sector]. 3. **Future Outlook**: - As Nigeria continues to transition towards a more digital economy, these changes may pave the way for further reforms in the financial sector, aligning with global trends towards cashless transactions [https://techpoint.africa/news/cbn-deposit-and-withdrawal-policy]. In summary, the CBN's revised cash policies are a significant step towards modernizing Nigeria's banking system, promoting financial inclusion, and adapting to the changing economic environment.