BREAKING: CBN Removes Cash Deposit Limits, Raises Weekly Withdrawal Cap to ₦500,000

The Central Bank of Nigeria (CBN) has abolished limits on cash deposits and increased the weekly cash withdrawal ceiling across all channels to ₦500,000, up from the previous ₦100,000.

The policy update was contained in a circular titled “Revised Cash-Related Policies”, issued to all banks and signed by Dr. Rita Sike, Director of the Financial Policy & Regulation Department.

According to the CBN, the changes are part of ongoing efforts to reduce the cost of managing cash, tackle security concerns, and minimise money-laundering risks linked to Nigeria’s high cash usage. The bank noted that earlier cash-related restrictions were introduced to encourage electronic payments, but evolving realities made it necessary to revise and streamline the policy.

Effective January 1, 2026, several major adjustments will take effect:

• The cumulative cash deposit limit has been removed, and the previous fee on excess deposits has been scrapped.
• The weekly withdrawal limit has been increased to ₦500,000 for individuals and ₦5 million for corporate entities, with withdrawals above these limits attracting charges outlined in the circular.
• The special monthly withdrawal authorization—₦5 million for individuals and ₦10 million for corporates—has been abolished.

For ATM transactions, daily withdrawals remain capped at ₦100,000, with a maximum of ₦500,000 per week, forming part of the overall weekly limit applicable across all channels, including POS terminals.

Excess withdrawals will attract charges of 3% for individuals and 5% for corporates, shared in a 40:60 ratio between the CBN and the bank or financial institution.

Banks have been directed to stock ATMs with all currency denominations. The existing ₦100,000 limit on over-the-counter withdrawals of third-party cheques remains unchanged and will count toward a customer’s cumulative weekly limit.

Additionally, financial institutions must submit monthly compliance reports to relevant CBN supervisory departments, including the Banking Supervision Department, the Other Financial Institutions Supervision Department, and the Payments System Supervision Department.

The circular clarified that government revenue accounts at all tiers, as well as microfinance and primary mortgage banks’ accounts held with commercial and non-interest banks, are exempt from the revised rules. However, the long-standing exemption previously granted to embassies, diplomatic missions, and donor agencies has been removed.

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