By Our Correspondent
The Central Bank of Nigeria has introduced new adjustments to its cash deposit and withdrawal policies to reduce the cost of managing cash, improve security in the financial system and strengthen efforts against money laundering.
In a circular sent to financial institutions, the apex bank announced the removal of all cash deposit limits, allowing customers to deposit any amount of money without restriction.
The bank also reviewed weekly cash withdrawal limits. Individuals can now withdraw up to 500,000 naira weekly, while corporate organisations can withdraw up to 5 million naira. This change is aimed at supporting genuine cash based activities while maintaining oversight on large transactions.
The Central Bank stated that cash deposits above certain thresholds will attract processing fees. This measure is intended to discourage excessive cash transactions and encourage the use of digital payment channels. The circular also noted that some institutions, including embassies, will be exempt from these charges.
According to the bank, the revised policy is expected to reduce the high cost of cash handling, lower the risks involved in moving physical money and support ongoing efforts to prevent money laundering and other financial crimes.
Industry observers say the policy may help create a balance between supporting business needs and safeguarding the financial system.
