BREAKING: CBN Removes Cash Deposit Limit, Raises Weekly Withdrawal to N500,000

• The Central Bank of Nigeria has scrapped its cash deposit limit and increased the weekly cash withdrawal ceiling to N500,000 for individuals, as part of a sweeping review of its cash-related policies effective January 1, 2026.

he Central Bank of Nigeria (CBN) has announced major changes to the country’s cash-handling framework, removing the limit on cash deposits and raising the weekly withdrawal limit to N500,000 across all channels—up from N100,000.

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

According to the apex bank, the updates are part of ongoing efforts to reduce the rising cost of cash management, address security concerns, and mitigate money-laundering risks linked to Nigeria’s heavy dependence on physical cash. The CBN added that earlier policies aimed at promoting electronic payments needed to be adjusted to reflect current economic realities.

Effective January 1, 2026, the CBN introduced several key changes:

Key Updates in the New Policy

• Removal of the cumulative cash deposit limit and stoppage of fees previously charged on excess deposits.
• Weekly cash withdrawal limit increased to N500,000 for individuals and N5 million for corporates.
• Withdrawals above these limits will attract excess charges prescribed in the circular.
• Special monthly withdrawal authorisation (N5m for individuals, N10m for corporates) has been abolished.
• ATM withdrawals remain capped at N100,000 daily and N500,000 weekly, as part of the overall limit.
• Excess withdrawal charges:
  • 3% for individuals
  • 5% for corporate customers
    Revenue from these charges will be shared 40% to CBN and 60% to the operating bank.

The CBN also mandated banks to load all currency denominations in ATMs, and maintained the limit on over-the-counter third-party cheque withdrawals at N100,000, which will count toward the overall weekly limit.

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Banks must now render monthly compliance reports to supervisory departments, including the Banking Supervision Department, Other Financial Institutions Supervision Department, and the Payments System Supervision Department.

Exemptions

Revenue accounts belonging to the federal, state, and local governments, as well as accounts of microfinance and primary mortgage banks, are exempt from the new cash limits and excess charges.
However, the exemption previously granted to embassies, diplomatic missions, and donor agencies has been removed.

The revised policy signals the CBN’s push toward a more structured cash-management system while attempting to balance financial inclusion, security, and regulatory compliance.