In a major policy shift aimed at easing liquidity pressure within Nigeria’s financial system, the Central Bank of Nigeria (CBN) has announced the removal of restrictions on cash deposits across all banking channels. The apex bank also significantly increased the weekly cash withdrawal limit from N100,000 to N500,000, marking a substantial departure from its previous cash-restriction framework.
The new directive, which takes immediate effect, allows individuals and businesses greater flexibility in accessing and depositing physical cash without the stringent penalties that previously accompanied higher amounts. According to banking industry analysts, the policy reversal is expected to stimulate economic activity, particularly within the informal sector, which relies heavily on cash transactions.
Stakeholders believe the increased withdrawal threshold will reduce transaction bottlenecks for small and medium-scale enterprises, rural traders, and cash-dependent households. The move may also help restore confidence among bank customers who struggled to adapt to the earlier limits imposed during the CBN’s cashless drive.
Economists, however, caution that while the policy could spur short-term relief, it may also pose challenges for inflation control and currency circulation if not carefully managed. Nonetheless, the latest decision signals the CBN’s responsiveness to market realities and growing public pressure for a more flexible cash management system.
ALSO READ: CDCFIB Announces New Mid-Management Recruitment Into the Federal Fire Service
Industry observers expect commercial banks to update their systems and customer support processes promptly to comply with the revised guidelines.