The Central Bank of Nigeria (CBN) has announced a revision of cash withdrawal and deposit limits for individuals and corporate accounts, signaling a move aimed at strengthening monetary policy, curbing cash-based transactions, and promoting digital payments across the country. The new regulations, which take effect immediately, outline updated thresholds for both daily and monthly cash transactions at banks and other financial institutions.
Under the revised framework, individuals will now face limits on the amount of cash they can withdraw or deposit without triggering additional reporting requirements. While specific thresholds vary based on account type and banking tier, the overarching goal is to reduce the overreliance on physical cash and encourage the use of electronic channels such as mobile banking, online transfers, and point-of-sale (POS) systems.
For businesses and corporate accounts, the CBN has also set revised ceilings for cash deposits and withdrawals, aiming to improve transparency in financial operations and reduce the risk of money laundering. Institutions handling large volumes of cash will now be required to provide detailed justifications for transactions exceeding prescribed limits, ensuring better compliance with regulatory standards.
The central bank emphasized that these measures are not intended to penalize account holders but to modernize Nigeria’s financial system. By encouraging electronic transactions, the policy seeks to improve record-keeping, facilitate financial inclusion, and support the growth of the digital economy. The move also aligns with the CBN’s broader strategy to curb informal cash circulation, which has been identified as a challenge in implementing effective monetary policy and monitoring economic activity.
Financial analysts suggest that while the revised limits may initially inconvenience cash-dependent businesses and individuals, the long-term benefits include increased adoption of digital payment solutions, reduced operational risks associated with handling large sums of money, and enhanced traceability of financial flows. Banks are expected to support customers in transitioning smoothly by promoting alternative channels and providing guidance on the new limits.
As Nigeria continues to embrace cashless banking initiatives, the CBN’s revised withdrawal and deposit limits mark a significant step toward fostering a safer, more efficient, and digitally-driven financial ecosystem. The success of the policy will largely depend on collaboration between regulators, financial institutions, and the public to ensure smooth implementation and broad adoption of electronic payment solutions.
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