The Central Bank of Nigeria (CBN) has removed cash deposit limits and increased the weekly cash withdrawal limit from N100,000 to N500,000 for individuals.
The announcement was contained in a circular issued to all banks and other financial institutions, signed by Dr. Rita Sike, Director of the Financial Policy and Regulation Department.
Sike explained that the revised guidelines are part of ongoing efforts to reduce the rising cost of cash management and address emerging security concerns. She added that the policy update will also help curb money laundering risks associated with a high dependence on cash.
She noted that earlier cash-related policies were introduced to reduce cash usage and encourage the adoption of electronic payment channels. “However, with time, the need to streamline and update these provisions to reflect present-day realities became necessary,” she said.
According to the circular, effective January 1, 2026, the cumulative cash deposit limit will be removed, and the fees previously charged on excess deposits will no longer apply.
The weekly withdrawal limit across all channels has now been reviewed to N500,000 for individuals and N5 million for corporate account holders. “Withdrawals above these thresholds will attract excess withdrawal charges as specified. The special monthly authorisation that allowed individuals to withdraw N5 million and corporates N10 million once a month has been abolished,” she added.
For Automated Teller Machines (ATMs), daily withdrawal remains capped at N100,000 per customer, with a maximum of N500,000 weekly. These withdrawals will count toward the overall weekly limit applicable across all channels, including point-of-sale (POS) terminals.
Excess withdrawals beyond the new limits will attract charges of 3% for individuals and 5% for corporates, to be shared in a 40:60 ratio between the CBN and the operating bank or financial institution.
Banks have also been directed to load all currency denominations in ATMs, while the existing N100,000 limit on over-the-counter encashment of third-party cheques remains in place and will count toward the weekly withdrawal cap.
Sike stated that banks must render monthly returns to the Banking Supervision Department, Other Financial Institutions Supervision Department, and the Payments System Supervision Department.
She added that revenue-generating accounts of federal, state, and local governments are exempt from the new rules. Accounts belonging to microfinance banks and primary mortgage banks held with commercial and non-interest banks are also exempt.
However, the long-standing exemptions previously granted to embassies, diplomatic missions, and aid-donor agencies have now been withdrawn.
