In a significant policy shift, the Central Bank of Nigeria (CBN) has removed the limit on cash deposits and increased the weekly cash withdrawal limit across all channels to N500,000, up from N100,000.
The announcement was made in a circular to all banks titled “Revised Cash-Related Policies”, signed by Dr. Rita Sike, Director of the Financial Policy & Regulation Department.
According to the CBN, the revised policy aims to reduce the cost of managing physical cash, strengthen security around cash handling, and curb money laundering concerns tied to the economy’s reliance on physical currency.
“These policies, issued over the years in response to evolving circumstances in cash management, sought to reduce cash usage and encourage accelerated adoption of other payment options, particularly electronic payment channels. With the effluxion of time, the need has arisen to streamline the provisions of these policies to reflect present-day realities,” the CBN stated.
Taking effect from January 1, 2026, the circular outlines several major updates. The cumulative cash deposit limit has been removed, eliminating the fee that was previously charged on excess deposits.
The CBN also reviewed the cumulative weekly withdrawal limit across all channels to N500,000 for individuals and N5 million for corporate entities. Withdrawals beyond these figures will attract excess withdrawal fees as detailed in the circular. Furthermore, the special monthly authorization that allowed individuals to withdraw N5 million and corporates N10 million once a month has been discontinued.
For ATM users, daily withdrawals remain capped at N100,000 per customer, with a total weekly limit of N500,000. This forms part of the overall withdrawal ceiling that covers all channels, including POS transactions.
The circular further revealed that withdrawals above the approved limits will attract charges of 3 per cent for individuals and 5 per cent for corporates. These fees will be shared between the CBN and financial institutions in a 40-to-60 ratio.
Banks have also been instructed to load all denominations of currency in ATMs, while maintaining the existing N100,000 limit for over-the-counter encashment of third-party cheques, which will count toward the weekly limit.
Additionally, banks must submit monthly reports to relevant supervisory departments, including the Banking Supervision Department, Other Financial Institutions Supervision Department, and the Payments System Supervision Department.
The CBN clarified that accounts belonging to federal, state, and local government revenue-generating bodies, as well as accounts of microfinance and primary mortgage banks held with commercial and non-interest banks, will be exempt from the new rules. However, the exemption previously granted to embassies, diplomatic missions, and aid-donor agencies has been withdrawn.
