BREAKING: CBN Removes Cash Deposit Limits, Raises Weekly Withdrawal

BREAKING: CBN Removes Cash Deposit Limits, Raises Weekly Withdrawal

The Central Bank of Nigeria (CBN) has announced sweeping changes to its cash-handling regulations, removing all limits on cash deposits and increasing the weekly cash withdrawal limit across all channels to N500,000, up from N100,000.

The changes were detailed 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 apex bank, the revised framework is part of ongoing efforts to reduce the rising cost of cash management, strengthen security, and address money laundering concerns linked to Nigeria’s heavy dependence on cash transactions. The CBN noted that previous cash-related policies were introduced to discourage excessive cash usage and promote electronic payment systems, but evolving realities necessitated an update.

Effective January 1, 2026, several major adjustments will take effect. The cash deposit limit has been completely removed, and charges on excess deposits have been scrapped. Weekly withdrawal limits have also been increased to N500,000 for individuals and N5 million for corporate entities, with withdrawals beyond these levels attracting prescribed excess charges.

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The special monthly authorisation, which previously allowed individuals to withdraw N5 million and corporates N10 million once a month, has been discontinued.

For ATM withdrawals, the daily limit remains N100,000 per customer, with a maximum of N500,000 weekly, forming part of the overall withdrawal limit applicable to all channels, including POS transactions.

Excess withdrawals above approved thresholds will attract fees of 3% for individuals and 5% for corporate customers, shared between the CBN and the operating bank in a 40:60 ratio.

Banks have also been instructed to load all currency denominations in ATMs. The cap on over-the-counter encashment of third-party cheques remains fixed at N100,000, and such payments will count toward the cumulative weekly withdrawal limit.

Furthermore, financial institutions are required to submit monthly compliance reports to supervisory departments, including the Banking Supervision Department, Other Financial Institutions Supervision Department, and Payments System Supervision Department.

The circular clarified that revenue-generating accounts of federal, state, and local governments, as well as accounts held by microfinance and primary mortgage banks, are exempt from the new rules. However, long-standing exemptions previously granted to embassies, diplomatic missions, and aid-donor agencies have now been removed.

BREAKING; CBN Removes Cash Deposit Limits, Raises Weekly Withdrawal