Breaking: Cbn Removes Cash Deposit Limits, Increases Weekly Withdrawal Ceiling

The Central Bank of Nigeria (CBN) has removed limits on cash deposits and raised the weekly cash withdrawal threshold across all channels to N500,000, up from N100,000. The changes were detailed 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 updates aim to reduce the rising cost of cash management, enhance security, and mitigate money laundering risks linked to Nigeria’s heavy reliance on cash. The bank explained that previous cash-related policies were designed to encourage electronic payments and reduce cash usage, but evolving realities made it necessary to revise and streamline these provisions.

Effective January 1, 2026, the circular introduces key adjustments: the cumulative deposit limit has been removed, and fees previously applied to excess deposits will no longer be charged.

The weekly withdrawal limit across all channels has been increased to N500,000 for individuals and N5 million for corporate customers. Withdrawals above these limits will incur excess withdrawal charges as outlined in the circular. The special monthly authorisation allowing individuals to withdraw N5 million and corporates N10 million once a month has been discontinued.

For Automated Teller Machines (ATMs), daily withdrawals remain capped at N100,000 per customer, with a maximum weekly limit of N500,000, which counts toward the overall weekly withdrawal ceiling, including point-of-sale (POS) transactions.

Excess withdrawals beyond the set limits will attract charges of 3% for individuals and 5% for corporate accounts, shared between the CBN (40%) and the operating bank or financial institution (60%).

Banks are also required to load all currency denominations into ATMs, while the existing N100,000 cap on over-the-counter encashment of third-party cheques remains in place and will count toward the cumulative weekly limit.

Additionally, banks must submit monthly reports to relevant supervisory departments, including the Banking Supervision, Other Financial Institutions Supervision, and Payments System Supervision departments.

The CBN clarified that accounts of federal, state, and local governments, as well as those of microfinance banks and primary mortgage banks held with commercial or non-interest banks, are exempt from the new withdrawal and excess-fee rules. However, the long-standing exemption previously extended to embassies, diplomatic missions, and aid-donor agencies has been removed.