The Central Bank of Nigeria has scrapped the limit on cash deposits and raised the weekly cash withdrawal limit across all channels to N500,000 for individuals, up from the existing N100,000.
The apex bank disclosed this in a circular titled Revised Cash Related Policies issued to all deposit money banks and other financial institutions and signed by the Director of Financial Policy and Regulation Department, Dr Rita Sike.
According to the circular, the revisions are part of the bank’s ongoing efforts to moderate the rising cost of cash management, address security concerns, and curb money laundering risks associated with the country’s heavy reliance on cash.
The CBN explained that while the earlier cash policy was introduced to reduce cash usage and promote electronic payment systems, prevailing economic realities had made a review of the provisions necessary.
With effect from January 1, 2026, the cumulative cash deposit limit has been completely removed, while the charges previously imposed on excess cash deposits have also been abolished.
The new policy raises the cumulative weekly cash withdrawal limit to N500,000 for individuals and N5m for corporate customers across all channels. Any withdrawal above these limits will attract excess withdrawal charges of three per cent for individuals and five per cent for corporate customers.
The charges will be shared in the ratio of 40 per cent to the CBN and 60 per cent to the operating bank or financial institution.
The apex bank also abolished the special monthly authorisation window that previously allowed individuals to withdraw N5m and corporates N10m once a month.
For Automated Teller Machines, the daily withdrawal limit remains N100,000 per customer, with the weekly maximum of N500,000 forming part of the total cumulative weekly limit across all channels, including point of sale transactions.
The bank further directed all banks to ensure that their ATMs are stocked with all denominations of the naira.
However, the existing limit on over the counter encashment of third party cheques remains N100,000 and such withdrawals will be counted as part of the weekly withdrawal limit.
In addition, banks are now required to submit monthly returns to the Banking Supervision Department, Other Financial Institutions Supervision Department and the Payments System Supervision Department.
The CBN clarified that revenue generating accounts of the Federal Government, state governments and local governments, as well as accounts of microfinance banks and primary mortgage banks held with commercial and non interest banks, are exempted from the new withdrawal and excess fee rules.
However, the long standing exemption previously granted to embassies, diplomatic missions and aid donor agencies has been withdrawn.
