CBN Ends Deposit Limits, Raises Withdrawals
By wolimoh Abdulmateen
The Central Bank of Nigeria (CBN) has announced major changes to its cash-related policies, removing the limit on cash deposits and increasing the weekly cash withdrawal cap to N500,000 for individuals, up from N100,000. The new directive was contained 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 revisions are part of broader efforts to reduce the rising cost of cash management, address security concerns, and curb money-laundering risks linked to Nigeria’s heavy dependence on physical cash. The CBN explained that previous policies were introduced to discourage cash usage and promote electronic payments, but changing economic conditions made it necessary to streamline the regulations.
The circular clarified that revenue-generating accounts belonging to federal, state and local governments, as well as microfinance banks and primary mortgage banks operating accounts with commercial and non-interest banks, will remain exempt from the new rules. However, the long-standing exemption granted to embassies, diplomatic missions and donor agencies has now been withdrawn.
Effective January 1, 2026, several key adjustments will take effect. The cumulative deposit limit has been abolished and the excess-deposit fee has been removed. The cumulative weekly cash withdrawal limit has been set at N500,000 for individuals and N5 million for corporates, with withdrawals above these amounts attracting excess-withdrawal charges as outlined in the circular. The special monthly authorisation that previously permitted individuals to withdraw N5 million and corporates N10 million once per month has also been discontinued.
For ATMs, daily withdrawal remains capped at N100,000, while the total weekly ATM withdrawal limit remains N500,000, forming part of the overall weekly withdrawal ceiling applicable across all channels, including POS transactions.
Excess withdrawals above approved limits will attract 3% charges for individuals and 5% for corporates, shared in a 40:60 ratio between the CBN and the operating financial institution.
Banks have been instructed to load all currency denominations in ATMs. The limit on over-the-counter withdrawals using third-party cheques remains at N100,000, and such withdrawals will be included within the weekly withdrawal computation.