The Central Bank of Nigeria (CBN), has announced that the exemption of embassies, diplomatic missions and aid donor agencies in the country, “from specific cash policies shall no longer apply.”
The apex bank made the announcement in a circular to banks, Other Financial Institutions (OFIs) and the general public, posted on its website, titled, “Revised cash-related policies,” in which it outlined new cash-related policies, that would take effect from January 1st 2026.
According to the circular, with the new policies, the cumulative deposit limit has been removed and the fee for excess deposit will no longer apply.
It also stated that the cumulative weekly withdrawal limit across all channels will be N500,000 for individuals and N5 million for corporates, adding that cumulative weekly withdrawal above these limits will attract excess withdrawal fees of 3 percent and 5 percent to individuals and corporate respectively, on the excess amount withdrawn. The circular said that the fees will be shared 40 percent to the CBN and 60 percent to the bank or financial institution.
Furthermore, under the new policy, “the special authorization for withdrawal of N5 million and N10 million once monthly by individuals and corporate respectively, shall no longer apply.”
However, the circular said that revenue generating accounts of Federal, State, and Local governments, as well as accounts of microfinance banks and Primary Mortgage Banks kept with commercial and non-interest banks are exempt from the stipulated provisions on cumulative weekly withdrawal limits.
For Automated Teller Machine (ATM) withdrawals, the circular said the limit will be N100,000 daily(per customer), subject to a maximum of N500,000 weekly, adding that, “all currency denominations may be loaded in ATMs.”
However, the limit on over-the-counter encashment of third party cheques remains at N100,000, according to the circular.
Also, under the new policy, banks are required to render monthly returns to the CBN on returns on cash withdrawal transactions above the specified limits and returns on cash deposits.
In addition, Deposit Money Banks are required to create separate accounts to, “warehouse processing charges collected on cash withdrawals above the limits.”
New Telegraph reports that over the years, the CBN has implemented several cash-related policies, which it said were aimed at addressing security concerns and “reducing the potential for money laundering associated with the economy’s heavy reliance on cash.”
Interestingly, in March 2012, the apex bank exempted all embassies, diplomatic missions, multilateral and donor agencies from cash withdrawal and deposit limits.
Analysts said at the time that as a signatory to various treaties, the Nigerian government does not impose financial penalties or charges on other sovereign states or their diplomatic institutions.
